Ford Shares Drop 6% as Weak 2025 Outlook Dims Strong Q4 Performance

Ford Motor (NYSE:F) saw its shares drop over 6% in pre-market today after issuing a downbeat profit forecast for 2025, overshadowing its better-than-expected fourth-quarter results.

The automaker anticipates adjusted earnings before interest and taxes (EBIT) of $7 billion to $8.5 billion for 2025, a sharp decline from the $10.2 billion reported in 2024. Ford cited ongoing market pressures as key headwinds and warned that the first half of the year would be particularly challenging.

The company expects first-quarter EBIT to hover around breakeven, attributing the weakness to lower wholesales and a shift toward producing less profitable vehicles. Additionally, major production transitions at key U.S. plants in Kentucky and Michigan are expected to weigh on early-year performance.

Despite the cautious outlook, Ford wrapped up 2024 on a high note, delivering fourth-quarter earnings that beat expectations. The company posted adjusted earnings per share of $0.39 on revenue of $48.2 billion, exceeding analysts’ forecasts of $0.36 per share on $47.79 billion in revenue.

While Ford’s long-term strategy remains focused on adapting to shifting consumer demand and production realignments, investors appear wary of the near-term profitability squeeze and broader economic uncertainties.