DETROIT, Feb 10, 2026, 16:58 (EST)
- Ford now expects adjusted EBIT between $8 billion and $10 billion in 2026, following a late-year tariff change that impacted its results
- The automaker reported a fourth-quarter net loss of $11.1 billion, largely due to charges from its EV program
- Ford anticipates Model e will post losses between $4 billion and $4.5 billion in 2026, though it forecasts improved cash flow.
On Tuesday, Ford Motor projected stronger profit and cash flow for 2026, following an unexpected late-year shift in U.S. tariff rules that bumped its 2025 tariff costs to roughly $2 billion. Despite posting an $11.1 billion net loss in the fourth quarter, the stock climbed about 1% in after-hours trading.
The outlook arrives as U.S. automakers work to stabilize margins amid changing trade policies and a slower-than-expected consumer shift to electric vehicles. For Ford, tariffs and an expensive hiccup at an aluminum supplier have clashed with an EV overhaul that’s already triggered significant write-downs.
Investors are closely monitoring if Ford can trim losses in its Model e electric-vehicle and software division without cutting off cash flow to its heavy-spending areas, particularly Ford Pro, the commercial segment. CEO Jim Farley has prioritized cost control and quality improvements following years plagued by warranty issues and recalls.
Ford reported fourth-quarter revenue of $45.9 billion, slipping 5% from the previous year. Adjusted EBIT — which excludes certain one-time charges — dropped to $1.0 billion. For the full year, revenue hit a record $187.3 billion, but the automaker logged a net loss of $8.2 billion. Adjusted EBIT for the year came in at $6.8 billion. 1
Ford expects adjusted EBIT between $8.0 billion and $10.0 billion in 2026, alongside adjusted free cash flow of $5.0 billion to $6.0 billion—this last figure shows cash generated after capital expenditures. The company also highlighted capital spending plans of $9.5 billion to $10.5 billion and anticipates a $4.0 billion to $4.5 billion loss from its Model e division. 2
The tariff blow stung. Chief Financial Officer Sherry House told reporters Ford missed out on about $900 million in expected savings last year, thanks to a last-minute tariff change announced by the Trump administration on Dec. 23. “We were notified very late in the year by the Trump administration of an unexpected change,” House said. 3
Ford cautioned that tariff expenses will stay steep in 2026, largely due to aluminum used in its F-150 pickup—its best-selling and most lucrative model. The automaker also faced unexpectedly high costs after a fire at an aluminum supplier further constrained its sourcing.
Model e continues to weigh heavily on Ford’s finances. The unit posted a $4.8 billion loss in 2025 and is expected to lose between $4.0 billion and $4.5 billion in 2026. Meanwhile, CEO Farley is pushing a more affordable EV platform, which includes a new electric pickup designed to better take on fast-moving global competitors, especially Chinese automakers. 4
Revenue still flows mainly from trucks and commercial clients. Ford Pro pulled in over $66 billion in 2025, with $6.8 billion in EBIT. Ford also reported a 30% jump in paid Pro software subscriptions throughout the year.
This pattern isn’t unique. General Motors and Stellantis, the Jeep maker, have also taken hefty charges linked to EV cutbacks, adjusting their product timelines and budgets after demand dropped and policies changed.
The rebound story isn’t without its risks. Tariff regulations might shift again, the aluminum supply issues haven’t completely eased for Ford, and if demand drops more or rivals slash prices aggressively, EV pricing pressure could deepen losses.
Ford’s stock has climbed roughly 47% in the last year, yet it still lags behind General Motors’ performance during that period. This gap highlights investors’ dwindling tolerance for errors in quality, expenses, and the shift to electric vehicles.
