Ford Motor reports 2025 earnings plunge due to various challenges

Tariffs and a supplier fire contributed to a 34% drop in adjusted earnings, but the company saw record revenue and U.S. market share growth.

Published on Feb. 10, 2026

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Ford Motor Co. reported that its 2025 adjusted earnings before interest and taxes plunged 34% to $6.78 billion compared with $10.2 billion in 2024 as it navigated added costs of President Donald Trump's tariffs, struggled with production issues after a supplier fire, and redefined its lineup including ending production of the popular Ford Escape compact SUV. Despite the challenges, Ford managed to deliver record revenue of $187 billion for the full year, up from $185 billion in 2024, marking the company's fifth consecutive year of top line growth.

Why it matters

Ford's struggles highlight the ongoing impact of tariffs and supply chain disruptions on the automotive industry, as well as the challenges automakers face in transitioning their lineups and production to meet evolving consumer demands and regulatory environments. The company's ability to maintain strong revenue and market share growth despite these headwinds demonstrates its operational resilience, but the significant drop in profitability raises questions about Ford's long-term competitiveness.

The details

Ford's adjusted earnings for 2025 fell 34% to $6.78 billion, impacted by $2 billion in tariffs and $2 billion in production disruptions from a supplier fire at Novelis, which supplies aluminum for Ford's F-150 and other vehicles. The company's revenue grew to a record $187 billion, and its U.S. market share reached a six-year high of 13.2% due to strong truck and off-road vehicle sales. However, Ford's Model e electric vehicle division continued to lose money, reporting an EBIT loss of $4.8 billion for the year.

  • Ford reported its 2025 full-year and Q4 results on February 10, 2026.
  • A supplier fire at Novelis disrupted aluminum supply for the F-150 Lightning and other Ford vehicles in 2025.

The players

Ford Motor Co.

An American multinational automaker that designs, manufactures, markets, and services a full line of Ford cars, trucks, SUVs, electrified vehicles, and Lincoln luxury vehicles.

Jim Farley

The CEO of Ford Motor Co.

Sherry House

The CFO of Ford Motor Co.

Novelis

A global leader in aluminum rolling and recycling that supplies Ford with much of the aluminum used in the bodies of its pickups and SUVs.

Donald Trump

The former President of the United States whose tariffs impacted Ford's earnings in 2025.

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What they’re saying

“Ford delivered a strong 2025 in a dynamic and often volatile environment. 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 8% adjusted EBIT margin by 2029.”

— Jim Farley, CEO, Ford Motor Co. (freep.com)

“2025 was a year of strong underlying operational improvement for Ford despite notable external pressures including significant tariffs, supply chain disruptions from the Novelis fire, and the dynamics around the regulatory environment.”

— Sherry House, CFO, Ford Motor Co. (freep.com)

What’s next

Ford expects Novelis to be fully operational by midyear 2026, and the company has contingency plans to secure sufficient aluminum supply from various sources in the meantime. Ford also expects tariffs to cost it another $2 billion this year and $1.6 billion in added costs due to the Novelis situation.

The takeaway

Ford's 2025 results demonstrate the automaker's resilience in the face of significant external challenges, including tariffs and supply chain disruptions. While the company's profitability took a hit, its ability to grow revenue and market share shows the strength of its core business. However, Ford's ongoing struggles with its electric vehicle division highlight the difficulties automakers face in transitioning to new technologies and business models.