Ford Reports Record Earnings for 2024, Automaker Is ‘Fundamentally Stronger’

Ford reported solid fourth-quarter and full-year earnings, signaling a significant financial comeback for the automaker. For Q4 2024, revenue reached $48.2 billion, with $1.8 billion in net income. Earnings before interest and taxes (EBIT) came in at $2.1 billion, up about $1 billion compared to the same period in 2023.

The company’s revenue for 2024 was $185 billion, which surpassed 2023’s $176.2 billion. Net income climbed to $5.9 billion, and adjusted EBIT hit $10.2 billion.

“Ford is becoming a fundamentally stronger company,” CEO Jim Farley said in a statement. “We finished 2024 with a solid fourth quarter, capping the highest revenue year in Ford’s history.”

Boosted by truck sales, the automaker sold 2.1 million vehicles in 2024, a 4% uptick, according to USA Today. Just in the last quarter, the company moved over 530,600 cars and trucks.

EV and hybrid sales grew 38% last year, reaching 285,291 units. Specifically, sales of the Mustang Mach-E climbed 27%, the F-150 Lightning went up 39%, and E-Transit sales jumped 64%.

This year, Ford expects to finish with an adjusted EBIT between $7 billion and $8.5 billion. Free cash flow will be around $3.5 billion to $4.5 billion. The automaker also predicts a range of $8 billion and $9 billion in capital expenditures.

Ford Divisions’ Earnings, Cost-Cutting, and Tariffs

Revenue for Ford’s Blue unit, which includes gas-powered and hybrid vehicles, fell nearly $2.2 billion compared to 2023, to $5.28 billion in 2024. The company’s Pro division made $1.6 billion in the fourth quarter and finished the year at $9 billion. Despite $1.4 billion cost cuts, the company’s EV development unit, Model e, lost an adjusted EBIT of $5.1 billion last year, $375 million more than in 2023.

Moving forward, the automaker will be looking at strategies to cut costs and improve quality wherever it can. Regulators and the market have been urging car makers to produce more affordable vehicles, and Ford is no exception.

Ford also has to consider the looming threat of tariffs on products from Mexico and Canada. While the proposed 25% tariffs would significantly affect the company, it is confident the current administration will do what it can to defend vehicle production.

“We believe the Trump administration intends to support the American auto industry,” said incoming CFO Sherry House, per USA Today. “As you would expect, we’ve mobilized our team across all the scenarios to ensure we minimize disruptions and protect our business.”

Ford could have performed better financially last year if it hadn’t been for unexpected problems, such as the numerous recalls it had to absorb. In April, 43,000 SUVs, including the Bronco Sport and Escape, were recalled due to gas leaks. Additionally, almost 140,000 Ford vehicles had to be recalled in January 2024 for an oil pressure issue.