Ford Signals Major EV Strategy Pivot Amidst Deepening Model e Losses

Feb 11, 2026 (22 hr ago)

Negative

Ford is recalibrating its EV strategy, projecting continued significant losses for the Model e unit while prioritizing gasoline and hybrid vehicles.

EV Division Strategy and Financial Hurdles

The Model e division reported a substantial $4.8 billion EBIT loss for the full year1
Ford does not anticipate the Model e unit achieving profitability until 2029 at the earliest1
The company expects the EV unit to incur another $4 to $4.5 billion loss in the upcoming year6
Ford is redefining its lineup, including ending production of the Ford Escape compact SUV4
The revised strategy now emphasizes gasoline and hybrid vehicles, alongside entering the battery storage systems business4

Full-year adjusted EBIT plunged 34% to $6.78 billion in 2025, despite achieving record revenue of $187 billion4
Q4 adjusted EBIT fell sharply to $1 billion, marking the largest quarterly earnings miss in four years6
Unexpected tariff costs of approximately $900 million significantly impacted fourth-quarter earnings before interest and taxes6
UAW profit-sharing checks for hourly workers will be the lowest in three years, totaling $6,7803
Production was stalled by a fire at a primary aluminum supplier's factory, impacting North American profits3

Ford projects 2026 adjusted EBIT between $8 billion and $10 billion, an increase from 2025 results6
Adjusted free cash flow is guided between $5 billion and $6 billion for 20261
The Ford Pro commercial segment is expected to generate $6.5 billion to $7.5 billion in EBIT for the coming year6
The Ford Blue segment (traditional vehicles) is targeted to achieve $4 billion to $4.5 billion in EBIT in 20264