Ford has announced a US$8.2 billion (A$11.5 billion) loss for the full 2025 calendar year, its worst result since 2008 and third full-year loss in the past 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 year it would take a US$19.5 billion (A$27.6 billion) write-down on its EV investments.
This saw it axe the electric Ford F-150 Lightning (not officially sold in Australia), and delay other planned EV models.
Additionally, the introduction of import tariffs in 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 company expected to pay another 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 year.
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 workers will still benefit from a US$6780 (A$9562) profit-sharing payment, although down from US$10,200 (A$14,386) last year.
The Ford F-Series was the best-selling vehicle line in the US, fending off the Chevrolet Silverado and Toyota RAV4, while the Ford Ranger took the top spot in Australia for the third consecutive year.
The company reduced costs by US$1.5 billion (A$2.12 billion) in 2025 and expects to deliver a further US$1 billion (A$1.41 billion) in cost cuts in 2026.
“Ford delivered a strong 2025 in a dynamic and often volatile environment,” Ford CEO Jim Farley said in a statement.
“We improved our core business and execution, made significant progress in 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 continue building on our strong foundation to achieve our target of eight per cent adjusted EBIT margin by 2029.”
While dealing with EV and tariff costs, the automaker is looking to capitalise on the increasing popularity of hybrid models in the US, and is working on extended-range electric vehicle (EREV) technology for upcoming models such as the new F-150 Lightning.
It also revealed it’s working on a cheaper ‘universal’ EV pickup among five new ‘affordable’ models, after it axed its Escape SUV in the US, leaving a gap in its lineup.
Ford is also in talks with several Chinese brands to produce EVs in shared factories to skirt tariff costs in Europe, where the automaker has also pledged to ‘lift its passenger car game’.