Ford has announced a US$8.2 billion (A$11.5 billion) loss for the total 2025 calendar yr, its worst result since 2008 and third full-year loss prior to now six years – despite record revenue.
Ford confirmed its Model e electric vehicle (EV) division posted a US$4.8 billion (A$6.8 billion) EBIT (earnings before interest and tax) loss in 2025, after previously confirming late last yr it will take a US$19.5 billion (A$27.6 billion) write-down on its EV investments.
This saw it axe the electrical Ford F-150 Lightning (not officially sold in Australia), and delay other planned EV models.
Moreover, the introduction of import tariffs within the US from April 2025 – and subsequent additional parts tariffs and country-specific ‘reciprocal’ and ‘retaliatory’ tariffs – cost the automaker US$2 billion (A$2.82 billion).
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Ford said the US federal government’s December 2025 tariff change meant the automaker couldn’t claim expected offsets, adding US$900 million (A$1.27 billion) more in tariff costs than previously forecast.
Chief financial officer Sherry House said the corporate expected to pay one other US$2 billion (A$2.82 billion) in tariff-related costs in 2026, while it expects to lose between US$4–4.5 billion (A$5.6–6.35 billion) on EVs this yr.
Despite the loss, Ford posted record revenue of US$187.3 billion (A$264.2 billion), which saw its share price rise, while US union employees will still profit from a US$6780 (A$9562) profit-sharing payment, although down from US$10,200 (A$14,386) last yr.
The Ford F-Series was the best-selling vehicle line within the US, heading off the Chevrolet Silverado and Toyota RAV4, while the Ford Ranger took the highest spot in Australia for the third consecutive yr.
The corporate reduced costs by US$1.5 billion (A$2.12 billion) in 2025 and expects to deliver an extra US$1 billion (A$1.41 billion) in cost cuts in 2026.
“Ford delivered a powerful 2025 in a dynamic and infrequently volatile environment,” Ford CEO Jim Farley said in a press release.
“We improved our core business and execution, made significant progress within the areas of the business we control — lowering material and warranty costs and making real progress on quality — and made difficult but critical strategic decisions that set us up for a stronger future.
“Moving forward, we’ll proceed constructing on our strong foundation to attain our goal of eight per cent adjusted EBIT margin by 2029.”
While coping with EV and tariff costs, the automaker is seeking to capitalise on the increasing popularity of hybrid models within the US, and is working on extended-range electric vehicle (EREV) technology for upcoming models corresponding to the brand new F-150 Lightning.
It also revealed it’s working on a less expensive ‘universal’ EV pickup amongst five latest ‘inexpensive’ models, after it axed its Escape SUV within the US, leaving a niche in its lineup.
Ford can also be in talks with several Chinese brands to supply EVs in shared factories to skirt tariff costs in Europe, where the automaker has also pledged to ‘lift its passenger automobile game’.
This Article First Appeared At www.carexpert.com.au
