Ford Motor Company (F) is currently organized through three customer-centered business segments: Ford Blue, engineering iconic gas-powered and hybrid vehicles; Ford Model e, inventing breakthrough electric vehicles (“EVs”) along with embedded software that defines always-on digital experiences for all customers; and Ford Pro, helping commercial customers transform and expand their businesses with vehicles and services tailored to their needs. Additionally, the Company provides financial services through Ford Motor Credit Company LLC (“Ford Credit”)
Ford Financial Performance in 2024 – Highlights
Total Ford revenue in 2024 was up to 184,992 M$ from 176,191 M$ in 2023 and 158,057 M$ in 2022.
Net income in 2024 was 5,894 M$, up from 4,329 M$ in 2023 and (2,152) M$ in 2022.
The GAAP Earnings per Share (EPS) in 2024 were 1.46$, up from 1.08$ in 2023 and (0.49)$ in 2022.
Cash and cash equivalents were down slightly in 2024, but the overall current assets of Ford Motor Company were 124,474 M$, well in excess of current liabilities (53,193 M$).
Long-term debt increased due to the contribution of Ford Credit, but this increase is offset by an equivalent increase in Ford Credit finance receivables.
The overall balance sheet of Ford seems stable and well managed.
Ford Operational Performance
In 2024, total number of dealerships declined to 9006 from 9527.
Wholesales, which consist primarily of vehicles sold to dealerships, are approximately constant in 2024 (4,470k) relative to 2023 (4,413k).
In 2024, the largest markets (as a percentage) were Canada (14.7%), the United States (12.6%), and the United Kingdom (9.6%) .
US sales by type indicate that internal combustion engine vehicles make the largest part of sales and wholesales.
The table below shows Ford’s full year 2024 net income/(loss) attributable to Ford and Company adjusted EBIT by segment (in millions). From this table, we can quickly conclude that the net income produced by the Ford Blue (combustion engine vehicles) is essentially annihilated by the net loss of the Ford Model e segment (purely electric vehicles). Furthermore, wholesale units of the Ford e segment decreased slightly year-over-year. Ford Pro performed better in 2024, which was offset by the the lower net income of Ford blue in 2024 relative to 2023.
Official explanation:
“The year-over-year increase of $1,532 million in net income/(loss) in 2024 was primarily driven by lower special items and higher Ford Pro EBIT, offset partially by lower Ford Blue EBIT and higher taxes. The lower year-over-year special items primarily reflect the non-recurrence of a pension and OPEB remeasurement loss in 2023, a pension remeasurement gain in 2024, and lower year-over-year restructuring related charges, offset partially by expenses related to the three-row SUV EV program cancellation. The year-over-year decrease of $208 million in Company adjusted EBIT primarily reflects lower Ford Blue and Model e EBIT, offset partially by higher Ford Pro EBIT and Ford Credit EBT.”
Ford Liquidity and Capital Resources
At December 31, 2024, Ford had a cash position of $28.5 billion and liquidity of $46.7 billion. At December 31, 2024, about 88% of Company cash was held by consolidated entities domiciled in the United States. To be prepared for an economic downturn and other stress scenarios, Ford targets an ongoing cash balance at or above $20 billion plus significant additional liquidity above the Company cash target.
Payments of long-term debt and other obligations seem well distributed over the next years, as stated in the next table:
Five Percent Beneficial Owners of Ford Common Stock
Pursuant to SEC filings, Ford was notified that as of December 31, 2024, the entities included in the table below had more than a 5% ownership interest of Ford common stock, or owned securities convertible into more than 5% ownership of Ford common stock, or owned a combination of Ford common stock and securities convertible into Ford common stock that could result in more than 5% ownership of Ford common stock.
- State Street Bank and Trust Company is the trustee for Ford common stock in the Ford defined contribution plans master trust, which beneficially owns 4.47% of the common stock of Ford. In this capacity, State Street Bank and Trust Company has voting power over the shares in certain circumstances.
- Based on a review of the Schedule 13G/A filed on January 29, 2024 by State Street Corporation. The Schedule 13G/A discloses that State Street Corporation had shared voting power as to 259,476,603 shares and shared dispositive power as to 173,925,221 shares.
- Based on a review of the Schedule 13G/A filed on January 8, 2025 by The Vanguard Group. The Schedule 13G/A discloses that The Vanguard Group had shared voting power as to 5,120,612 shares, sole dispositive power as to 383,377,249 shares and shared dispositive power as to 18,706,534 shares.
- Based on a review of the Schedule 13G/A filed on January 26, 2024 by BlackRock, Inc. The Schedule 13G/A discloses that BlackRock, Inc. had sole voting power as to 257,455,864 shares and sole dispositive power as to 282,647,800 shares.
All Directors and Executive Officers as a group (26 persons) beneficially owned 0.48% of Ford common stock or securities convertible into Ford common stock as of February 1, 2025.
Outlook for 2025: Ford Guidance
The latest company guidance was released in the earnings report furnished on Form 8-K dated February 5, 2025.
For the total company, the expectations are:
Adjusted EBIT: $7.0 – $8.5 billion
Adjusted Free Cash Flow: $3.5 – $4.5 billion
Capital spending: $8.0 – $9.0 billion
However, management states: “…should 25% tariffs be implemented and remain in place for an extended period of time, it would significantly reduce Ford’s earnings over the course of the year.”
As a final note, despite the recent improvement of financial performance of Ford Motor Company, 2025 is going to be challenging due to the economic instability and the looming tariffs. We are expectant to see the results for the full year 2025.
Sources:
- 2024 Annual Report to Security Holders: https://d18rn0p25nwr6d.cloudfront.net/CIK-0000037996/84a96449-fb41-499a-9b18-db6f76998e81.pdf
- DEF 14A filing dated 03/28/2025 Proxy Statement (definitive): https://d18rn0p25nwr6d.cloudfront.net/CIK-0000037996/ba071c4a-cb05-4251-8ce6-7d892db8aa4a.pdf