DETROIT – Ford Motor reported its largest quarterly earnings miss in four years in its fourth-quarter results released Tuesday, while guiding for 2026 to be a rebound year for the automaker.

Ford’s 2026 guidance includes adjusted EBIT of between $8 billion and $10 billion, up from $6.8 billion last year; adjusted free cash flow of between $5 billion and $6 billion, up from $3.5 billion in 2025; and capital expenditures of $9.5 billion to $10.5 billion, up from $8.8 billion.

Here’s how the company performed in the fourth quarter compared with average estimates compiled by LSEG:

• Earnings per share: 13 cents adjusted vs. 19 cents expected
• Automotive revenue: $42.4 billion vs. $41.83 billion expected

The EPS coming in 32% below consensus was the company’s first quarterly miss since 2024 and its worst since a 42% difference when reporting its 2021 fourth-quarter results, according to LSEG.

The earnings miss was largely due to unexpected tariff costs of roughly $900 million related to credits for auto parts not taking effect as early as expected, the company said. Ford, as of Dec. 15, had confirmed $7.7 billion in earnings before interest and taxes for the fourth quarter, but the additional costs dropped that to $6.8 billion.

Ford CFO Sherry House said the lower-than-expected earnings were also related to additional impacts from fires at a Novelis aluminum supplier plant last year in New York, which now isn’t expected to be fully operational until the middle of this year. The plant supplies Ford’s lucrative F-Series pickup trucks.

“We will see a billion-dollar benefit roughly in 2026; however, this year, due to the Novelis impact, we’re going to have tariffs increasing in order to secure aluminum that is roughly the same amount of that savings,” House told reporters.

Ford’s net tariff impact is expected to be roughly flat year-over-year at $2 billion in 2026, she said. The Novelis fire had an impact of $2 billion during the second half of the year for Ford, she added.

House and Ford CEO Jim Farley said the company’s 2025 results continue to demonstrate the company’s underlying business is improving despite the special items impacting results.

The company’s 2025 revenue was a record $187.3 billion, up 1% from $185 billion a year earlier. That includes $45.9 billion during the fourth quarter, down 5% from a year before.

On a business unit level, the automaker’s traditional and fleet operations are expected to offset an expected $4 billion to $4.5 billion in losses this year for its “Model e” electric vehicle unit. Pre-tax earnings from its “Ford Pro” fleet business are expected to be between $6.5 billion to $7.5 billion, followed by $4 billion to $4.5 billion for its traditional “Blue” business.

On an unadjusted basis, the company’s net loss of $8.2 billion last year was its largest since the Great Recession in 2008, according to FactSet. That included $15.5 billion in special charges during the fourth quarter largely related to a pre-announced pullback in its all-electric vehicle plans.

Automakers commonly exclude “special items” or one-time charges from their adjusted financial results to provide investors with a clearer picture of their core, ongoing business operations.

Ford reported a fourth-quarter net loss of $11.1 billion, or a loss of $2.77 per share, compared with net income of $1.8 billion, or 45 cents per share, in the same period in 2024. Adjusted for the one-time charges, the company reported earnings of 13 cents per share.