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As the entire auto industry grapples with weak demand for battery-powered cars and trucks, Ford isn’t alone in deciding to take a step back from lofty plans for electric vehicles, but the Dearborn-based automaker’s recent financial report reveals just how hard it is for its bank account.
in particular, Ford’s year-end financial results The company reported a net loss of $11.1 billion in the fourth quarter of 2025, its worst financial performance in a quarter since 2008. Sales fell 5% by the end of the year, and adjusted profits plummeted by more than $500 million. Ford says it will suffer a total loss of $8.2 billion in 2025 due to $2 billion in tariff costs and EV write-downs.
Overall, 2025 was Ford’s third-worst year ever and its third full-year loss in the past six years. Ford Chief Financial Officer Shelley House said sales technically rose 1% year over year to $187.3 billion, but year-end tariffs reduced revenue by about $900 million. These losses occurred despite Ford’s $1.5 billion in cost savings during the year.
“Ford delivered a strong 2025 in a dynamic and often volatile environment,” CEO Jim Farley said in a statement. “We improved our core business and execution, reduced material and warranty costs, and made real progress on quality. “We have made significant progress in the business areas we manage and made difficult but important strategic decisions that position us for a stronger future. We continue to build on our strong foundations to achieve our goal of an 8% adjusted EBIT margin by 2029.”
One of the reasons for this weak fourth quarter performance was a $20 billion hit in EV manufacturing tooling costs and the cancellation of certain models, including: Ford F-150 Lightning. $15.5 billion of those losses were included in fourth-quarter earnings, but the remaining billions of dollars in losses will remain until 2027. Fire at New York aluminum supplier The company was partly to blame for the loss, as supply shortages limited production of the F-Series pickups, resulting in $2 billion in lost revenue. (Ford says it will make up for half of this loss by ramping up production in 2026.)
The $2 billion in tariff costs that Ford paid in 2025 will likely be incurred again in 2026, although tariff costs related to aluminum sourcing could rise due to supplier changes. Other key indicators include losses at Ford’s electric vehicle division were slightly lower in 2024, posting a loss of $4.8 billion compared to a loss of $5.1 billion previously. What’s more, even though Ford led the industry by a wide margin in recalls, it still managed to reduce warranty costs by about $500 million. Overall, Ford said it is aiming for $10 billion in adjusted profits and $1 billion in additional cost savings, and is preparing for modest sales growth in 2026.