Ford Posts Biggest Financial Loss Since Great Recession, $11 Billion Loss in Q4 2025

Big investments in electric vehicle technology are coming back to haunt the Dearborn-based automaker.

Published on Feb. 11, 2026

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Ford reported an $11.1 billion net loss in the fourth quarter of 2025, its worst financial performance in a quarter since 2008. Revenue declined 5% through the end of the year, and adjusted earnings plunged by over half a billion dollars. In total, Ford lost $8.2 billion in 2025, taking on $2 billion in tariff costs and losing out on EV write-downs.

Why it matters

Ford's struggles highlight the challenges facing the entire auto industry as it grapples with slowing demand for battery-powered cars and trucks. The company's heavy investments in electric vehicle technology have come at a steep cost, and the company is now having to make difficult strategic decisions to position itself for a stronger future.

The details

Ford's fourth quarter losses were driven by a $20 billion hit from EV manufacturing tooling costs and the cancellation of certain models like the Ford F-150 Lightning. An October 2025 fire at a New York aluminum supplier also constricted F-Series pickup production, accounting for $2 billion in lost revenue. Ford's electric vehicle wing lost slightly less than it did in 2024, posting a $4.8 billion loss as opposed to the previous $5.1 billion one. The company also lead the industry in recalls by a wide margin, though it managed to decrease its warranty costs by around $500 million.

  • Ford reported its Q4 2025 results in February 2026.
  • The $2 billion in tariff costs Ford paid in 2025 are likely to reappear in 2026.
  • Ford says it will make up half the $2 billion loss from the October 2025 fire by ramping up production in 2026.

The players

Ford

An American automaker based in Dearborn, Michigan.

Jim Farley

The CEO of Ford.

Sherry House

The CFO of Ford.

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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 percent adjusted EBIT margin by 2029.”

— Jim Farley, CEO (roadandtrack.com)

“Overall, we enter the year with the right portfolio, the right strategy and the discipline to execute.”

— Jim Farley, CEO (roadandtrack.com)

What’s next

Ford says it is gearing up for a slight climb in revenue for 2026, as it aims for an adjusted earnings of $10 billion and an additional $1 billion in cost cutting.

The takeaway

Ford's heavy investments in electric vehicle technology have come at a steep cost, leading to its biggest financial loss since the Great Recession. The company is now having to make difficult strategic decisions to position itself for a stronger future, as it grapples with slowing demand for battery-powered cars and trucks across the industry.