Ford Motor Company today announced its fourth-quarter and full-year 2024 financial results.
“Ford is becoming a fundamentally stronger company. We finished 2024 with a solid fourth quarter, capping the highest revenue year in Ford’s history,” said President and CEO Jim Farley. “Our product portfolio offers the broadest powertrain choice. And Ford Pro, with its mid-teen margins, leading market position, and growing service and repair revenue, provides unique advantages for continued growth.”
“In 2025, we expect to make significantly more progress on our two biggest areas of opportunity – quality and cost – as we enter the heart of our Ford+ transformation. We control those key profit drivers, and I am confident that we are on the right path to create long-term value for all our stakeholders.”
Added Sherry House, Ford’s vice president, Finance, and incoming CFO: “The Ford+ plan is built on strong fundamentals and we expect to build momentum and earnings power through 2025. We are remaking Ford into a higher growth, higher margin, more capital efficient and more durable company that is focused on delivering great value to our customers and shareholders.”
Total Company Highlights
| Fourth Quarter | Full Year | ||||||
| 2023 | 2024 | Change | 2023 | 2024 | Change | ||
| Wholesale Units (000) | 1,152 | 1,188 | 3 % | 4,413 | 4,470 | 1 % | |
| GAAP Financial Measures | |||||||
| Cash Flows from Op. Activities ($B) | $ 2.5 | $ 3.0 | $ 0.5 | $ 14.9 | $ 15.4 | $ 0.5 | |
| Revenue ($B) | 46.0 | 48.2 | 5 % | 176.2 | 185.0 | 5 % | |
| Net Income / (Loss) ($B) | (0.5) | 1.8 | 2.4 | 4.3 | 5.9 | 1.5 | |
| Net Income / (Loss) Margin (%) | (1.1)% | 3.8 % | 4.9 ppts | 2.5 % | 3.2 % | 0.7 ppts | |
| EPS (Diluted) | $ (0.13) | $ 0.45 | $ 0.58 | $ 1.08 | $ 1.46 | $ 0.38 | |
| Non-GAAP Financial Measures | |||||||
| Company Adj. Free Cash Flow ($B) | $ 2.0 | $ 0.7 | $ (1.2) | $ 6.8 | $ 6.7 | $ (0.1) | |
| Company Adj. EBIT ($B) | 1.1 | 2.1 | 1.1 | 10.4 | 10.2 | (0.2) | |
| Company Adj. EBIT Margin (%) | 2.3 % | 4.4 % | 2.1 ppts | 5.9 % | 5.5 % | (0.4) ppts | |
| Adjusted EPS (Diluted) | $ 0.29 | $ 0.39 | $ 0.10 | $ 2.01 | $ 1.84 | $ (0.17) | |
| Adjusted ROIC (Trailing Four Qtrs) | 13.9 % | 12.9 % | (1.0) ppts | ||||
The company posted fourth-quarter revenue of $48.2 billion, a $2.2 billion increase from the same period a year ago. Fourth-quarter net income was $1.8 billion; adjusted earnings before interest and taxes was $2.1 billion.
For full-year 2024, revenue climbed 5% to $185 billion; net income was $5.9 billion, and adjusted EBIT was $10.2 billion.
Cash flow from operations in the fourth quarter was $3.0 billion, and adjusted free cash flow was $0.7 billion. For the year, cash flow from operations was $15.4 billion and adjusted free cash flow was $6.7 billion. At year end, Ford had over $28 billion in cash and nearly $47 billion in liquidity, providing the flexibility necessary in a dynamic environment.
Ford’s board of directors today declared a first-quarter regular dividend of $0.15 per share, plus a supplemental dividend of $0.15 per share, payable on March 3 to shareholders of record on Feb. 18.
Business Segment Highlights
| Fourth Quarter | Full Year | ||||||||||
| 2023 | 2024 | Change | 2023 | 2024 | Change | ||||||
| Ford Blue Segment | |||||||||||
| Wholesales (000) | 758 | 774 | 2 % | 2,920 | 2,862 | (2)% | |||||
| Revenue ($B) | $ 26.2 | $ 27.3 | 4 % | $ 101.9 | $ 101.9 | — % | |||||
| EBIT ($M) | 813 | 1,581 | $ 768 | 7,462 | 5,284 | $ (2,178) | |||||
| EBIT Margin (%) | 3.1 % | 5.8 % | 2.7 ppts | 7.3 % | 5.2 % | (2.1) ppts | |||||
| Ford Model e Segment | |||||||||||
| Wholesales (000) | 34 | 37 | 10 % | 116 | 105 | (9)% | |||||
| Revenue ($B) | $ 1.6 | $ 1.4 | (11) % | $ 5.9 | $ 3.9 | (35)% | |||||
| EBIT ($M) | (1,570) | (1,389) | $ 181 | (4,701) | (5,076) | $ (375) | |||||
| EBIT Margin (%) | (98.2)% | (98.1)% | 0.1 ppts | (79.7)% | (131.8)% | (52.0) ppts | |||||
| Ford Pro Segment | |||||||||||
| Wholesales (000) | 361 | 378 | 5 % | 1,377 | 1,503 | 9 % | |||||
| Revenue ($B) | $ 15.4 | $ 16.2 | 6 % | $ 58.1 | $ 66.9 | 15 % | |||||
| EBIT ($M) | 1,811 | 1,629 | $ (182) | 7,222 | 9,015 | $ 1,793 | |||||
| EBIT Margin (%) | 11.8 % | 10.0 % | (1.7) ppts | 12.4 % | 13.5 % | 1.0 ppts |
In 2024, Ford Blue’s revenue was flat at $101.9 billion as positive net pricing offset a 2% decline in wholesales driven by the discontinuation of low-margin products. Segment EBIT was $5.3 billion.
Ford Model e reported a full-year EBIT loss of $5.1 billion, as the company continues to invest in future products. The segment delivered $1.4 billion in cost improvements, net of a $100 million increase in spending to launch new battery plants and next-generation electric vehicles.
Ford Pro generated $9.0 billion in EBIT – a margin of 13.5%, in line with its target of mid-teens. Revenue increased 15% year-over-year to $66.9 billion. Paid software subscriptions increased 27% in 2024 to nearly 650,000 subscribers utilizing new solutions to boost the productivity of their fleets. Telematics grew nearly 100%.
Ford Credit reported full-year earnings before taxes (EBT) of $1.7 billion, an increase of $323 million compared to last year.
Ford anticipates full-year adjusted EBIT of $7.0 billion to $8.5 billion and to generate $3.5 billion to $4.5 billion in adjusted free cash flow, with capital expenditures of $8.0 billion to $9.0 billion. The guidance presumes headwinds related to market factors.
The company expects first quarter 2025 adjusted EBIT to be roughly breakeven due to lower wholesales and unfavorable mix, including launch activity at major U.S. assembly plants, including Kentucky Truck and Michigan Assembly Plants.
At a segment level, the outlook is for full-year 2025 EBIT of $7.5 billion to $8.0 billion from Ford Pro and $3.5 billion to $4.0 billion from Ford Blue; an EBIT loss of $5.0 billion to $5.5 billion for Ford Model e; and earnings before taxes of about $2.0 billion from Ford Credit.
Ford plans to report first-quarter 2025 financial results after the close of market on Monday, April 28.
SOURCE: Ford
