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Ford's US Auto Sales Dip 9% in February: Hold or Fold the Stock Now?
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Ford Motor (F - Free Report) has reported a drop of 8.9% in auto sales in the United States for February 2025, reflecting ongoing challenges as the company navigates shifting consumer demand, production adjustments and increasing competition.
While Ford’s electrified models, including hybrids and EVs, saw double-digit growth, its core gasoline-powered vehicle sales, which still make up most of its lineup, declined by 12.7%. The company has attributed part of the downturn to product transitions, including the discontinuation of the Edge crossover and production pauses at key facilities like the Kentucky Truck Assembly plant, which is preparing for next-generation models like the Ford Expedition and Lincoln Navigator.
Sales of EVs grew 15% to 7,326 units, helped by strong Mustang Mach-E and E-Transit van sales. However, the F-150 Lightning struggled, with sales falling 14.7% as competition from the Tesla Cybertruck, Chevy Silverado EV and other electric pickups intensified.
Ford’s SUV sales fell by 24.4% and car sales dipped by 32.2%. Its trucks, however, recorded growth of 7.7%.
In the trailing 12-month period, F shares have sunk 24.9%, underperforming the Zacks Auto, Tires and Trucks sector’s fall of 2.7% and the Zacks Automotive – Domestic industry’s appreciation of 11.2%. The S&P 500 index has gained 16.2% in the same time frame.
Despite efforts to streamline inventory and boost EV adoption via incentives, Ford has been facing several headwinds as it is making efforts to adapt to the evolving market conditions, growing electrification and an uncertain macroeconomic landscape.
One-Year Performance
Image Source: Zacks Investment Research
Apart from the already slowing auto sector, one major challenge expected to further impact Ford’s financial performance is the Trump administration’s sweeping 25% tariff on auto imports from Mexico, Canada and the European Union. With a Chihuahua engine plant and two assembly plants in Cautitlan and Hermosillo in Mexico, the tariffs can severely disrupt Ford’s operations. The company exported nearly 196,000 cars from Mexico to North America in the first half of 2024, with approximately 90% of the vehicles going to the United States alone.
Ford also has an assembly plant in Oakville, Canada, where it has been planning to make a gas-powered F-Series pickup truck beginning in 2026. The company is assessing strategic shifts until the full impact of the tariffs becomes clearer.
Another concern for Ford is the pricing pressure and market competition, particularly in the EV industry. As more automakers, including Chinese carmakers like BYD and Li Auto, aggressively expand their global footprint with lower-cost alternatives, Ford is facing downward pricing pressure.
Moreover, Ford needs to navigate the changing customer preferences. While its hybrid trucks have gained traction, its EVs are struggling to find a profitable market due to high battery costs and limited consumer willingness to pay a premium.
For 2025, Ford expects a full-year adjusted EBIT of $7 billion to $8.5 billion compared to $10.2 billion in 2024. The company expects to generate $3.5 billion to $4.5 billion in adjusted free cash flow in 2025, compared to $6.7 billion in 2024. Capital expenditures are expected to be in the range of $8 billion to $9 billion.
The Zacks Consensus Estimate for Ford’s first-quarter 2025 revenues is pegged at $35.51 billion, indicating a year-over-year decline of 11%. The consensus mark for first-quarter 2025 EPS is currently pegged at 7 cents, down by a massive 82.9% over the past 30 days and indicating a decline of 85.71% on a year-over-year basis.
The Zacks Consensus Estimate for Ford’s 2025 revenues is pegged at $166.15 billion, indicating a year-over-year decline of 3.78%. The consensus mark for 2025 EPS is currently pegged at $1.42 and has moved south by 15% over the past 30 days. The figure suggests a decline of 22.83% on a year-over-year basis.
Ford beat the Zacks Consensus Estimate for earnings in two of the trailing four quarters, was in line with the estimate in one quarter and missed once, the average surprise being 1.21%.
Conclusion
Ford faces significant challenges in 2025, including declining sales, tariff effects and EV market pressures that are expected to adversely impact the company’s stock performance.
F currently carries a Zacks Rank #4 (Sell), suggesting that it may be wise for investors to stay away from the stock for the time being.
The Zacks Consensus Estimate for GM’s 2025 earnings has moved north 6.7% over the past 30 days and suggests year-over-year growth of 8.02%. It is currently pegged at $11.45 per share.
The Zacks Consensus Estimate for BLBD’s 2025 earnings has moved up by 3.1% over the past 30 days and suggests yearly growth of 15.61%. It is currently pegged at $4 per share.
The Zacks Consensus Estimate for ZAPP’s 2025 loss has been steady at 84 cents per share over the past 30 days and suggests growth of 67.2% on a year-over-year basis.
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Ford's US Auto Sales Dip 9% in February: Hold or Fold the Stock Now?
Ford Motor (F - Free Report) has reported a drop of 8.9% in auto sales in the United States for February 2025, reflecting ongoing challenges as the company navigates shifting consumer demand, production adjustments and increasing competition.
While Ford’s electrified models, including hybrids and EVs, saw double-digit growth, its core gasoline-powered vehicle sales, which still make up most of its lineup, declined by 12.7%. The company has attributed part of the downturn to product transitions, including the discontinuation of the Edge crossover and production pauses at key facilities like the Kentucky Truck Assembly plant, which is preparing for next-generation models like the Ford Expedition and Lincoln Navigator.
Sales of EVs grew 15% to 7,326 units, helped by strong Mustang Mach-E and E-Transit van sales. However, the F-150 Lightning struggled, with sales falling 14.7% as competition from the Tesla Cybertruck, Chevy Silverado EV and other electric pickups intensified.
Ford’s SUV sales fell by 24.4% and car sales dipped by 32.2%. Its trucks, however, recorded growth of 7.7%.
In the trailing 12-month period, F shares have sunk 24.9%, underperforming the Zacks Auto, Tires and Trucks sector’s fall of 2.7% and the Zacks Automotive – Domestic industry’s appreciation of 11.2%. The S&P 500 index has gained 16.2% in the same time frame.
Despite efforts to streamline inventory and boost EV adoption via incentives, Ford has been facing several headwinds as it is making efforts to adapt to the evolving market conditions, growing electrification and an uncertain macroeconomic landscape.
One-Year Performance
Image Source: Zacks Investment Research
Apart from the already slowing auto sector, one major challenge expected to further impact Ford’s financial performance is the Trump administration’s sweeping 25% tariff on auto imports from Mexico, Canada and the European Union. With a Chihuahua engine plant and two assembly plants in Cautitlan and Hermosillo in Mexico, the tariffs can severely disrupt Ford’s operations. The company exported nearly 196,000 cars from Mexico to North America in the first half of 2024, with approximately 90% of the vehicles going to the United States alone.
Ford also has an assembly plant in Oakville, Canada, where it has been planning to make a gas-powered F-Series pickup truck beginning in 2026. The company is assessing strategic shifts until the full impact of the tariffs becomes clearer.
Another concern for Ford is the pricing pressure and market competition, particularly in the EV industry. As more automakers, including Chinese carmakers like BYD and Li Auto, aggressively expand their global footprint with lower-cost alternatives, Ford is facing downward pricing pressure.
Moreover, Ford needs to navigate the changing customer preferences. While its hybrid trucks have gained traction, its EVs are struggling to find a profitable market due to high battery costs and limited consumer willingness to pay a premium.
For 2025, Ford expects a full-year adjusted EBIT of $7 billion to $8.5 billion compared to $10.2 billion in 2024. The company expects to generate $3.5 billion to $4.5 billion in adjusted free cash flow in 2025, compared to $6.7 billion in 2024. Capital expenditures are expected to be in the range of $8 billion to $9 billion.
The Zacks Consensus Estimate for Ford’s first-quarter 2025 revenues is pegged at $35.51 billion, indicating a year-over-year decline of 11%. The consensus mark for first-quarter 2025 EPS is currently pegged at 7 cents, down by a massive 82.9% over the past 30 days and indicating a decline of 85.71% on a year-over-year basis.
The Zacks Consensus Estimate for Ford’s 2025 revenues is pegged at $166.15 billion, indicating a year-over-year decline of 3.78%. The consensus mark for 2025 EPS is currently pegged at $1.42 and has moved south by 15% over the past 30 days. The figure suggests a decline of 22.83% on a year-over-year basis.
Ford beat the Zacks Consensus Estimate for earnings in two of the trailing four quarters, was in line with the estimate in one quarter and missed once, the average surprise being 1.21%.
Conclusion
Ford faces significant challenges in 2025, including declining sales, tariff effects and EV market pressures that are expected to adversely impact the company’s stock performance.
F currently carries a Zacks Rank #4 (Sell), suggesting that it may be wise for investors to stay away from the stock for the time being.
Key Picks
Some better-ranked stocks in the auto space are General Motors (GM - Free Report) , Blue Bird (BLBD - Free Report) and Zapp Electric Vehicles Group Limited (ZAPP - Free Report) . GM, BLBD and ZAPP carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for GM’s 2025 earnings has moved north 6.7% over the past 30 days and suggests year-over-year growth of 8.02%. It is currently pegged at $11.45 per share.
The Zacks Consensus Estimate for BLBD’s 2025 earnings has moved up by 3.1% over the past 30 days and suggests yearly growth of 15.61%. It is currently pegged at $4 per share.
The Zacks Consensus Estimate for ZAPP’s 2025 loss has been steady at 84 cents per share over the past 30 days and suggests growth of 67.2% on a year-over-year basis.