How Ford's Q4 Shows More Profits on the Way

The Motley Fool

by newsfeedback@fool.com (Daniel Miller)

February 26, 2026

AI-Generated Deep Dive Summary

Ford Motor Company (NYSE: F) reported strong financial performance for 2023, with record revenue of $187.3 billion marking its fifth consecutive year of growth. While some investors were disappointed by Ford's Q4 results, the company's strategic pivot toward more profitable vehicles like gasoline-powered SUVs, trucks, and hybrids signals a promising future. This shift has already paid off, as Ford achieved a 0.6 percentage point increase in U.S. market share to reach 13.2%, its best sales performance since 2019. Ford's focus on profitability is evident in its decision to scale back production of less profitable full-electric vehicles (EVs) and instead prioritize hybrid and internal combustion engine options, which currently yield higher margins. This strategy aligns with the broader automotive industry trend where SUVs and trucks remain more lucrative than EVs, at least for now. Ford's plan to wait until 2027 for its next major push into EVs suggests a calculated approach to maximize short-term profits while building momentum in the EV market. In comparison to competitors General Motors (GM) and Stellantis, Ford's stock performance has been lackluster over the past three years. While GM's shares nearly doubled and Stellantis' dropped by half, Ford's stock remained relatively flat with only a 9% gain. This underperformance highlights the urgency for Ford to demonstrate sustained profitability improvements to justify its valuation and attract investors. Ford's ability to generate consistent revenue growth despite these challenges underscores its potential as a long-term investment. The company's focus on hybrid and high-margin vehicles, combined with its strong execution in North America, positions it well for future growth. Investors should closely monitor Ford's progress in executing its strategic pivot and maintaining profitability as key indicators of its success. For finance enthusiasts and investors, Ford's story is a compelling example of how strategic shifts can drive long-term value creation. While the company faces headwinds from market volatility and competitive pressures, its focus on profitability and innovation positions it for sustained growth in the years ahead.

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Originally published on The Motley Fool on 2/26/2026