NEW YORK, Feb 12, 2026, 06:36 EST — Premarket
- Ford shares climbed roughly 1.8% in premarket action, building on gains from their latest earnings report.
- After a sharp quarterly loss driven by special items, management is refocusing on their profit and cash-flow targets for 2026.
- A report showing higher employee bonuses linked to improved initial vehicle quality adds weight to the story that execution is getting better.
Ford Motor’s shares climbed roughly $0.24, or 1.8%, hitting $13.85 in premarket trading on Thursday, following a $13.61 close the previous day.
This shift is crucial since the stock hinges on one key question: can Ford safeguard cash flow and margins amid cost cuts, tariff impacts, and revamping its electric-vehicle plans? Much depends on managing warranty expenses and nailing product execution, rather than lofty goals.
Ford reported a fourth-quarter revenue of $45.9 billion on Tuesday, ending with a net loss of $11.1 billion. For the full year, revenue hit a record $187.3 billion, though the net loss stood at $8.2 billion. On an adjusted basis, excluding certain special items, Ford posted $1.0 billion in adjusted EBIT for the quarter and $6.8 billion for 2025. Looking ahead, the company projects 2026 adjusted EBIT between $8 billion and $10 billion, with adjusted free cash flow — cash after capital expenditures — forecasted at $5 billion to $6 billion. CEO Jim Farley described 2025 as “dynamic and often volatile,” while CFO Sherry House emphasized a “disciplined approach to capital efficiency” to boost results. Ford will release first-quarter results after the market closes on April 28. (SEC)
Ford reported closing 2025 with close to $29 billion in cash and $50 billion in total liquidity. Ford Pro, its commercial division, continued to drive profits, but the Model e EV segment racked up another multibillion-dollar loss and is forecasted to run red ink through 2026.
Tariffs and supply chain hiccups remain a clear threat. Ford forecasts around $2 billion in tariff-related costs this year, largely from aluminum used in its profitable F-150 trucks. CFO Sherry House noted that a late-December adjustment to tariff relief tacked on about $900 million in expenses, dragging results below the company’s profit target. (Reuters)
Investors got a clear hint on quality. CEO Jim Farley told employees in a Wednesday town hall that companywide bonuses for 2025 would be set at 130%, after initial vehicle quality—measured by repairs within the first 90 days of ownership—reached its best level in a decade, according to people familiar with the matter. These bonuses cover about 75,000 salaried workers worldwide. Ford has been pushing hard to cut recalls and warranty costs following what the report called an industry-record recall count in 2025. (Reuters)
Wall Street’s attention has shifted from the headline loss to whether Ford’s 2026 guidance meets expectations. Barclays analyst Dan Levy said the outlook “largely cleared the bar,” whereas Morgan Stanley analysts pointed to tariffs and supplier costs weighing down the midpoint of the profit forecast. (Investing)
The downside is straightforward. If tariffs hit harder than anticipated, aluminum supply remains tight, or recall and warranty expenses don’t drop, the cash-flow forecast could take a hit — especially since the EV segment is still unprofitable and price wars are fierce.
Traders will be eyeing analyst updates and any new details on tariffs and supplier schedules as the week unfolds. The next major event arrives April 28, when Ford is set to release its first-quarter earnings after the market closes.
