Ford's F-Series overwhelmingly dominates the pickup segment, while the Bronco and Explorer are gaining market share in SUVs, the Mustang remains the queen of the sports segment in the US, while the Pro Transit van is still the best seller in the commercial segment.
However, tariffs, gas prices at the pump, and the creeping difficulties in its electric segment, which is not expected to break even before 2029, which justified an asset write-down exceeding $9bn last year, continue to weigh on results.
This means that the automaker continues to report an operating loss in FY 2025, for the first time since the pandemic, with it barely reaching break-even in Q1 2026. The bill would have been even steeper if it had not significantly revised its EV roadmap two and a half years ago.
Over the past ten years, Ford's revenue growth has been flat once adjusted for inflation, while the dividend did not rise and its net debt increased sharply. At least the company is largely self-funding its push into EVs, even if that effort is taking time to pay off.
Curiously, the recent setbacks have not weighed on the automaker's market valuation, which commands a valuation of 1.5x book value and a dividend yield that is bang in line with its historical average, even with consensus remaining very cautious for FY 2026 and FY 2027.
