Image: from Car Dealership Guy X@GuyDealership
By Open Chronicle Staff
DEARBORN, Mich. — Ford Motor Company reported a massive $11.1 billion net loss for the fourth quarter of 2025 on Tuesday, a figure largely driven by the company’s decision to aggressively pivot away from high-cost electric vehicle programs. Despite the deep “red ink” on the balance sheet, CEO Jim Farley described 2026 as a “rebound year,” pointing to a leaner strategy and record hybrid sales.
The staggering GAAP loss stands in sharp contrast to the $1.8 billion profit reported in the same period a year ago. Management clarified that the majority of the deficit, roughly $12.5 billion, stems from “special items” related to the cancellation of several major EV projects, including a three-row electric SUV and a next-generation electric pickup, as the company resets its strategy toward more affordable, high-volume models.
More pictures: pic.twitter.com/WMZHZ3DSCx
— Car Dealership Guy (@GuyDealership) October 3, 2023
A “Messy” Quarter
Beyond the strategic restructuring, Ford’s bottom line was battered by a series of operational “headwinds.” CFO Sherry House noted that an unexpected $2 billion loss was linked to fires at a Novelis aluminum supplier plant, which disrupted production of the high-margin F-Series trucks.
Additionally, Ford was hit with an unexpected $900 million in tariff costs in the final weeks of December. According to House, a change in guidance regarding tariff credits for imported parts left the company with a significantly higher bill than analysts had anticipated. Adjusted earnings per share came in at $0.13, missing Wall Street’s estimate of $0.19.
It’s now official, Ford is canceling it’s F-150 Lightning and taking a massive impairment on its EV business…. nearly $20 billion. pic.twitter.com/o3hxIceiQc
— Martyupnorth®- Unacceptable Fact Checker (@Martyupnorth) December 16, 2025
Ford Pro and Hybrids: The Silver Lining
While the “Model e” electric division remains a drain on resources, projecting losses of up to $4.5 billion for 2026, Ford’s traditional and commercial businesses remain robust. Ford Pro, the company’s fleet and services arm, delivered more than $66 billion in revenue for the full year, maintaining its status as the company’s primary profit engine.
Hybrids also emerged as a critical safety net. Sales of hybrid vehicles surged 21.7% in the fourth quarter, reaching record levels as consumers hesitate to fully embrace pure battery-electric options.
The Road to 2026
Looking ahead, Ford issued a bullish forecast for 2026, projecting an adjusted EBIT (Earnings Before Interest and Taxes) between $8 billion and $10 billion. The company is also doubling down on its “Ford Energy” division, with a $1.5 billion capital commitment aimed at battery storage for grid stability and data centers.
“We dealt decisively with the reality of the market,” Farley told investors, referring to the painful write-downs. “We’re now locked into a more vibrant and profitable product roadmap. No more boring products.”
Investors appeared to buy into the long-term vision; Ford shares held steady in after-hours trading despite the dismal quarterly figures, as the market focused on the promise of a leaner, hybrid-heavy future.