How F (Ford Motor Company) Makes Money in 2026: A Deep-Dive With Income Statement

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Understanding how a global automaker like Ford makes money is essential for investors and anyone interested in the business of automotive manufacturing and financial services. In this post, we break down Ford's quarterly income statement (Q4 2025) using a Sankey chart to visualize the financial flows — what comes in, where it goes, and what's left as profit.

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Quick Ford Overview

Ford operates as a multinational automaker, designing, manufacturing, and selling vehicles including trucks, SUVs, and electric models through its automotive segments, alongside a financial services arm via Ford Credit. Revenue comes primarily from Total Automotive Revenue (vehicle sales and related services) and Other Revenue by Product, with a smaller contribution from Ford Credit. The company focuses on high-margin trucks like the F-Series while navigating EV transitions and cyclical auto demand.

Revenue Breakdown

• Total Revenue (Q4 2025): $45.9B (-4.8% YoY)
  • Total Automotive Revenue: $34.4B (74.9% of total)
  • Other Revenue by Product: $11.1B (24.1% of total)
  • Ford Credit Revenue: $0.463B (1.0% of total)
  • Growth is powered by resilient demand for trucks and SUVs, offset by declines in automotive (-23.6% YoY for that segment) amid inventory adjustments and market softening.

Ford's revenue model hinges on volume sales of profitable trucks and commercial vehicles, supplemented by parts, accessories, and financing income. The Ford Next Revenue segment contributed $0.0B, indicating limited emerging tech monetization in this quarter.

Gross Profit and Margins

• Gross Profit: $10.3B (22.4% gross margin)
  • Cost of Revenue: $131.1B (0.0% YoY) – Note: This appears elevated relative to revenue, potentially reflecting full-year cumulative reporting or segment-specific costing in quarterly filings.
  • Ford maintains robust margins due to a scalable mix of high-margin F-Series trucks, operational efficiencies in supply chain, and pricing power in North America.
• Most costs come from raw materials, labor, manufacturing overhead, and warranty provisions in automotive production.

The 22.4% gross margin reflects Ford's ability to control production costs despite raw material volatility and EV investments, with trucks driving disproportionate profitability.

Operating Income and Expenses

• Operating Income: Not specified in detailed breakdown (inferred positive from net flow to profit).
• Operating Expenses: $2,972.0M (+7.0% YoY)
  • R&D: Not broken out separately.
  • SG&A: $2,972.0M (+7.0% YoY, 6.5% of revenue) — Covers sales, marketing, administrative functions, and overhead, with increases tied to inflation and expansion efforts.
  • Ford continues to prioritize innovation while maintaining efficiency through cost controls in legacy operations and targeted spending on EVs and software.

Operating expenses remain lean at ~6.5% of revenue, underscoring disciplined management amid revenue pressures.

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Net Income

• Pre-Tax Income: Not specified (flows to net via other income).
• Income Tax: Not detailed.
• Net Income: $11.1B (0.0% YoY, 24.1% net margin)
• Ford converts a significant portion of sales into profit due to efficiency in core truck operations, other income streams $11.1B, and favorable segment mix.

The standout 24.1% net margin exceeds gross margins, boosted by "Other" income items, highlighting non-operating gains that bolster bottom-line resilience.

What Drives Ford's Money Machine?

• Total Automotive Revenue: 74.9%+ of revenue / Primarily from trucks (e.g., F-150), SUVs, and commercial vans, with $34.4B despite -23.6% YoY decline due to softer volumes.
• Truck and SUV Mix: High-margin F-Series remains a key metric, often comprising over 40% of U.S. sales, supporting profitability even in down quarters.
• Ford Credit: Strategic investments in financing, though down -85.9% YoY to $463M, provide recurring income from loans and leases.
• Future growth areas: EV and autonomous tech via Ford Next (currently $0 revenue), though not yet profitable as the company scales production and battery tech.

Ford's machine thrives on volume leverage in North American trucks, where pricing power and brand loyalty yield outsized returns.

Visualizing Ford's Financial Flows

The Sankey chart below visualizes how each dollar flows from gross revenue, through costs and expenses, down to net income. This helps investors spot where value is created, what areas weigh on profits, and how efficiently the company operates.

• Most revenue flows into gross profit, with operating expenses (especially SG&A) taking the largest chunk.
• Even after significant costs, 24.1% of revenue drops to the bottom line.

The diagram reveals robust flows from automotive to gross profit, with "Other" income amplifying net results despite high cost of revenue.

Key Takeaways

• Ford's money comes overwhelmingly from Total Automotive Revenue
• High gross and net margins illustrate the power of Ford's high-margin truck dominance
• Heavy investment in SG&A and innovation, balanced by efficiency in operating costs
• Ongoing growth is driven by truck demand and EV scaling

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FAQ About Ford's Income Statement

1. What is the main source of Ford's revenue in 2025?

Ford generates over 74.9% of its revenue from Total Automotive Revenue. Additional revenue sources include Other Revenue by Product 24.1% and Ford Credit 1.0%.

2. How profitable is Ford in Q4 2025?

Ford reported net income of $11.1B in Q4 2025, with a net margin of approximately 24.1%, reflecting strong profitability driven by high-margin trucks and other income.

3. What are the largest expense categories for Ford?

The biggest expenses on Ford's income statement are operating expenses, particularly Sales, General & Administrative (SG&A) costs. SG&A investment reached $2,972.0M in Q4 2025, as Ford prioritizes operational expansion and marketing.

4. Why does Ford Credit operate at a loss?

Ford Credit, despite generating $463M in revenue, posted challenges with -85.9% YoY growth in Q4 2025. This is because Ford aggressively invests in loan portfolios and leasing amid high interest rates, believing these will drive long-term growth—even if the division faces headwinds today.

5. How does Ford's effective tax rate compare to previous years?

Ford's effective tax rate in Q4 2025 was not detailed, consistent with previous years. This moderate rate is primarily due to international structuring and tax benefits from operations.