Ford Motor(US:F) ZACKS·2025-03-04 14:30Core Viewpoint - Ford Motor has reported a significant decline in auto sales in the United States, facing challenges from shifting consumer demand, production adjustments, and increasing competition [1][4]. Sales Performance - Ford's overall auto sales in the U.S. dropped by 8.9% in February 2025, with gasoline-powered vehicle sales declining by 12.7% [1][2]. - Sales of electrified models, including hybrids and EVs, experienced double-digit growth, while EV sales grew by 15% to 7,326 units, driven by strong Mustang Mach-E and E-Transit van sales [2][3]. - The F-150 Lightning saw a 14.7% decline in sales due to intensified competition from other electric pickups [3]. - SUV sales fell by 24.4%, and car sales decreased by 32.2%, while truck sales recorded a growth of 7.7% [3]. Financial Outlook - For 2025, Ford expects adjusted EBIT to be between $7 billion and $8.5 billion, down from $10.2 billion in 2024 [11]. - The company anticipates generating adjusted free cash flow of $3.5 billion to $4.5 billion in 2025, compared to $6.7 billion in 2024 [11]. - The Zacks Consensus Estimate for Ford's 2025 revenues is $166.15 billion, indicating a year-over-year decline of 3.78% [13]. Market Challenges - The Trump administration's 25% tariff on auto imports from Mexico, Canada, and the EU poses a significant challenge, as Ford exported nearly 196,000 cars from Mexico to North America in the first half of 2024 [7]. - Increased pricing pressure and competition in the EV market, particularly from lower-cost alternatives from Chinese automakers, are additional concerns for Ford [9]. - Changing customer preferences and high battery costs are impacting the profitability of Ford's EVs [10]. Stock Performance - Over the trailing 12-month period, Ford's shares have decreased by 24.9%, underperforming the Zacks Auto, Tires and Trucks sector's decline of 2.7% [4]. - The consensus estimate for Ford's first-quarter 2025 EPS is 7 cents, reflecting a significant year-over-year decline of 85.71% [12].