Business
Ford reports worst quarterly earnings miss in four years, guides for better 2026
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.
The prices of gold increased in the local market on Monday, with 24-karat gold per tola rising by Rs1,100 to settle at Rs491,462 compared to Rs490,362 on the previous trading day, according to rates issued by the All Pakistan Sarafa Gems and Jewellers Association.
Similarly, the price of 10 grams of 24-karat gold increased by Rs943 to Rs421,349 from Rs420,406, whereas 10 grams of 22-karat gold went up by Rs864 to Rs386,250 against Rs385,386.
In the international market, the price of gold increased by $11 to $4,687 per ounce from $4,676.
Meanwhile, the price of silver per tola decreased by Rs 50 to Rs 7,744 from Rs 7,794, while the price of 10 grams of silver declined by Rs 43 to Rs 6,639 from Rs 6,682.
The price of silver in the international market also decreased by $0.50 to $72.60 per ounce from $73.10.
Hyderabad: Aurobindo Pharma’s board on Monday approved a Rs 800 crore share proposal to buy back up to 54.23 lakh fully paid-up equity shares of the company of face value Rs 1 each at Rs 1,475 a share.The proposed buyback, which is subject to regulatory and statutory approvals, represents up to 0.93% of the total number of equity shares in the company’s total paid-up equity share capital.The Hyderabad-based generics drug maker informed the bourses that April 17, 2026, has been fixed as the record date to determine shareholder eligibility and entitlement for the buyback, which will be carried out through the tender offer route on a proportionate basis, in line with SEBI’s Buyback Regulations and the Companies Act.All eligible equity shareholders, including promoters and promoter group entities holding shares on the record date, will be entitled to participate in the offer for which the company has already constituted a buyback committee.The company also said the board or buyback committee may increase the buyback price and correspondingly reduce the number of shares to be bought back up to one working day before the record date but the overall size will remain unchanged.The Rs 800 crore buyback size excludes transaction costs and related expenses such as brokerage, taxes, filing fees, legal charges and publication expenses, it said.The latest buyback comes less than two years after the last buyback offer aggregating to Rs 750 crore that was made at Rs 1,460 a piece in August 2024 by the company.As of December 31, 2025, promoters and promoter group entities held 51.82% stake in the company, mutual funds 19.52%, foreign portfolio investors 13.94%, insurance companies 5.50%, and public shareholders and others 7.93%.
Major UK supermarkets are facing renewed pressure to restore worker pay to the real living wage, after many retailers scaled back commitments amidst significant industry cost pressures.
Investor activist group ShareAction is leading the call, urging the country’s largest grocery chains to reinstate pay at this level.
The campaign follows recent pay increases announced by the sector, ahead of the 1 April rise in the national minimum wage to £12.71 per hour for those aged 21 and over.
While many now pay above this statutory minimum, few currently match the higher real living wage.
This voluntary, independently calculated benchmark, reflecting true living costs, is currently £13.45 an hour nationally and £14.80 in London.
M&S was revealed last month to be no longer offering pay in line with the real living wage when it announced its latest wage hike, despite a rise of at least 6.4 per cent and offering levels above the national minimum wage and inflation.
The Co-operative Group also became the latest to announce its pay rise for workers, with a 3.5 per cent increase from April, but has now dropped a previous “long-standing commitment” to the real living wage.
The two biggest players in the sector – Tesco and Sainsbury’s – also no longer match pay to the real living wage and have not since 2025.
Both pay higher than the national minimum wage after above-inflation rises, but not at the living wage level.
Discount supermarkets Aldi and Lidl are the only major supermarkets to pay entry-level shop staff in line with the real living wage nationwide, with Aldi’s hourly rate exceeding the benchmark.
The John Lewis Partnership, which owns supermarket Waitrose, has hiked shop staff pay by 6.9% from April but only matches the real living wage for employees within the M25.
ShareAction said pressure on firms to make firm commitments on pay would be a “major focus” for it at upcoming annual meetings for shareholders.
But it comes amid steep cost pressures on the sector, not least higher National Insurance contributions after the tax hike in April last year.
Louise Eldridge, head of good work at ShareAction, said: “It’s disappointing to see supermarkets like M&S, Sainsbury’s and Tesco moving away from matching the real Living Wage pay rates after setting the pace in recent years.
“We know retailers are under real pressure.
“The latest Living Wage rise reflects higher living costs, but that’s exactly why paying people a wage can actually live on is so important.”
She added: “Investors have been making the case to these companies that better pay has proven business benefits, from better morale to lower turnover and higher productivity.
“We’ve made progress on disclosure, but that alone won’t help staff cover the basics, so we’re continuing to push for concrete commitments on pay. This will be a major focus for us at supermarket AGMs this year.”
A spokeswoman for Sainsbury’s, which increased worker pay by 5 per cent in April, said the group had increased hourly wages by 42 per cent in the past five years.
“Our colleagues are at the heart of our success and rewarding them well continues to be a priority,” she said.
A Co-op spokesperson said: “In recent years we have aligned our lowest rates of pay with the Real Living Wage, although we are not formally accredited as a Real Living Wage employer.
“Pay is considered as part of our wider reward offer, which includes benefits such as paid breaks, colleague discounts and wellbeing support.”
M&S stressed it has never formally committed to the living wage.
Tesco said its wages have risen by 43 per cent over the last five years, adding its workers “also benefit from a competitive reward package”.
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