Ford Motor Stock: Profit Outlook Triggers Sharp Share Decline

Ford Motor Company experienced a significant 4.7% drop in after-hours trading following the announcement of its 2025 earnings forecast. Despite surpassing analyst expectations in the latest quarter with a total revenue increase of 5% to $48.2 billion, investors responded negatively to the company's adjusted operating profit (EBIT) projection of $7.0 to $8.5 billion for the upcoming fiscal year. This forecast falls considerably short of the previous year's $10.2 billion figure and market expectations. The automotive giant also outlined plans for free cash flow between $3.5 and $4.5 billion, alongside capital expenditure ranging from $8 to $9 billion.

Electric Vehicle Performance

The company's electric vehicle division continues to face challenges, reporting an operational loss of nearly $1.4 billion in the last quarter, though this represents a slight improvement from the previous year. However, there are some positive indicators in this segment, as evidenced by the remarkable 173% year-over-year increase in Mach-E sales this January, with 3,529 units sold. The traditional combustion engine and commercial vehicle segments remain profitable, contributing significantly to the overall quarterly profit of $1.8 billion.