Ford Motor Company reported a quarterly net loss of $1.8 billion in Q4 2025, its worst performance since 2009, highlighting escalating challenges in its transition to electric vehicles. The results underscore growing pressure on leadership to deliver profitability amid rising R&D costs and declining internal combustion engine sales.
- Ford reported a $1.8 billion net loss in Q4 2025, its worst since 2009
- Operating margin contracted to -7.3% from 2.5% in Q4 2024
- EV sales reached 187,000 units, but still represent a small share of total volume
- Capital expenditures on EV infrastructure exceeded $3.7 billion in 2025
- Stock fell 9.4% in after-hours trading, wiping out $12 billion in market cap
- Major institutional holders reduced stakes by 8–11% in Q4 2025
Ford’s latest financial report reveals a staggering $1.8 billion net loss for the fourth quarter of 2025, marking the largest deficit in the company’s history since the 2008 financial crisis. This performance, driven by a $2.3 billion charge related to restructuring and plant closures, reflects the deepening costs of its pivot to electric vehicle (EV) production. The loss comes despite a 14% year-over-year increase in EV sales, which totaled 187,000 units—still a fraction of the 1.2 million internal combustion engine vehicles sold during the same period. The company's operating margin for the quarter fell to negative 7.3%, down from 2.5% in Q4 2024, signaling structural strain in its current business model. Ford’s investment in battery plants and EV platforms, including the $2.1 billion committed to the Blue Oval City complex in Tennessee and the $1.6 billion investment in a new battery facility in Kentucky, has significantly contributed to the bottom-line pressure. These projects, intended to support a 2030 target of 60% EV sales, are now under scrutiny as delivery timelines slip and production costs exceed projections. Market reaction was swift: Ford’s stock dropped 9.4% in after-hours trading, erasing $12 billion in market value. Institutional investors are increasingly vocal, with BlackRock and Vanguard reducing their stakes by 11% and 8%, respectively, in the past quarter. Analysts at JPMorgan and Bernstein have downgraded the stock to 'Neutral' and 'Underweight,' citing concerns over capital efficiency and the pace of EV profitability. The results also expose broader industry challenges. Ford’s struggles mirror those of General Motors and Stellantis, both reporting declining margins in legacy segments. However, Ford’s higher-than-expected losses may accelerate scrutiny on its CEO, Jim Farley, whose 2025 plan to cut $2.5 billion in annual costs remains under pressure. With the company’s EV lineup still reliant on the Mustang Mach-E and F-150 Lightning—both facing stiff competition from Tesla and Rivian—investors are demanding clearer paths to sustainable returns.