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Ford Motor Company reported mixed Q4 2025 financial results, with revenue of $42.45 billion surpassing the $41.53 billion consensus estimate but reflecting a 5% year-over-year decline. Adjusted EPS fell short at $0.13 versus the expected $0.18, a 27.78% miss. The company generated $3.9 billion in cash flow from operations but reported negative free cash flow of $2.1 billion, ending the quarter with $23.36 billion in cash. For 2026, Ford projects adjusted EBIT between $8 billion and $10 billion and adjusted free cash flow of $6 billion. While profitability metrics such as a 4.84% net margin, 5.29% ROE, and 0.82% ROA exceeded industry averages, its debt-to-equity ratio of 3.47 highlights elevated financial risk. Strategically, Ford is adjusting its EV approach to focus on hybrid vehicles and a flexible Universal EV Platform, aiming for 50% hybrid, extended-range EV, and electric sales by 2030. Analysts have raised price targets, with the average 12-month target increasing by 18.33% to $13.88, reflecting cautious optimism about Ford's pivot and potential profitability improvements in the Model E segment by 2029. However, challenges such as cooling EV demand, manufacturing retooling, and high debt levels remain key concerns.
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About F

Ford Motor Co. manufactures automobiles under its Ford and Lincoln brands. In March 2022, the company announced that it will run its combustion engine business, Ford Blue, and its BEV business, Ford Model e, as separate businesses but still all ... Read more

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Bullish Option Strategy: Long Calls

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