Ford Motor Company posted a net loss of $8.2 billion last year, with global sales for the first time surpassing BYD.

Ford Motor Company reports its largest annual loss since 2008.

On February 10th, local time, American traditional automaker Ford Motor Company released its full-year financial report for fiscal year 2025. The report disclosed that the company’s total revenue for 2025 reached approximately $187.3 billion, marking five consecutive years of annual revenue growth, with a slight increase compared to the previous year.

Despite reaching a record high in revenue, the company’s overall net loss for fiscal year 2025 was about $8.18 billion, significantly lower than the net profit of $5.88 billion in 2024; the adjusted EBIT for 2025 was $6.8 billion, down from $10.2 billion in 2024, reflecting ongoing pressure on profit margins.

Ford stated that this massive loss mainly resulted from a series of extraordinary expenses, asset impairments, and significant losses in its electric vehicle business.

Ford management emphasized that several major strategic initiatives and one-time events collectively increased costs, leading to the 2025 loss.

In the electric vehicle sector, Ford’s electric vehicle division, Ford Model e, achieved approximately $6.7 billion in revenue for the year but continued to operate at a loss, with total losses reaching about $4.8 billion. Although the losses narrowed compared to the previous year, they still posed a heavy burden on overall performance. Ford has already made clear that its electric vehicle business will incur losses for at least three more years.

More seriously, the company recorded approximately $10.7 billion in asset impairments and project cancellations related to electrification assets, most of which were associated with canceling certain EV projects, halting capacity expansion, and strategic adjustments.

The same issues are not unique to Ford. Several foreign media outlets pointed out that many automakers are currently reevaluating their electrification strategies amid market demand falling short of expectations, high costs, and reduced subsidies, leading to scaled-back electric vehicle projects.

According to The Wall Street Journal, to cut back on electric vehicle operations, Ford, General Motors, and Stellantis have announced combined expenditures exceeding $50 billion.

Meanwhile, Ford also faces additional costs from U.S. trade policies in 2025.

Ford explained that due to adjustments in the timing of tariff exemption programs, the company increased tariff expenses by about $2 billion, significantly lowering profit margins.

Additionally, fluctuations in raw material supplies have occurred. For example, an accident at an aluminum supplier caused production disruptions, resulting in several hundred million dollars in supply chain losses for Ford, further squeezing already tight profit margins.

In its electric vehicle strategy, Ford has announced strategic adjustments to some models, including halting certain EV productions and shifting resources toward hybrid or range-extended vehicles, aiming to improve profitability.

Ford management pointed out that this shift is a response to market demand realities and product roadmap recalibrations, with future capital and technology investments focused on more profitable and market-resilient powertrains.

Looking ahead, Ford holds a relatively optimistic outlook, expecting adjusted EBIT to increase to approximately $8 billion to $10 billion in 2026, with adjusted free cash flow projected at $5 billion to $6 billion.

However, the market believes Ford’s “repositioning” still faces long-term challenges.

Analysts noted that Ford’s current phase of electrification adjustment has had profound financial impacts. Its business scale and global sales layout still give it advantages in the traditional internal combustion engine market, but whether Ford can regain competitiveness in the electric wave in the coming years will depend on product innovation, cost control, and rapid market response.

Another noteworthy point is that in 2025, Ford’s global sales were surpassed for the first time by Chinese automaker BYD, which sold about 4.6 million vehicles worldwide, while Ford sold less than 4.4 million. Foreign media commented that this reflects China’s automakers’ advantages in electrification and cost-performance competitiveness within the global automotive landscape.

(Source: The Paper)