Is Ford profitable?
Ford is a profitable company. On a generally accepted accounting principles (GAAP) basis, Ford reported $500 million of net income in the first quarter of 2025, a roughly $900 million decline from the prior year period. It's coming off a strong year of profitability. In 2024, Ford produced $5.9 billion of net income, a $1.5 billion improvement from 2023.
The company initially expected 2025 to be a profitable year. However, due to the uncertain impact of tariffs on its business, the company suspended its financial guidance.
Ford's revenue
As one of the largest automakers in the world, Ford generates a lot of revenue. The company reported $40.7 billion of revenue in the first quarter of 2025, a 5% decline from the prior year. The company hauled in $185 billion of revenue in 2024, a 5% increase from the prior year.
Ford's valuation
Ford trades at a relatively low valuation. In mid-2025, shares of Ford traded at a forward price-to-earnings (PE) ratio of slightly less than 10 times. That was dirt cheap compared to the broader market. The S&P 500's forward PE was more than 21 times, while the Nasdaq-100 fetched more than 25 times forward earnings, making Ford look like a good value investment.
Does Ford pay a dividend?
As of mid-2025, Ford shareholders do get paid dividends. However, the company has a rather spotty track record as a dividend stock. Ford reinstated its dividend towards the end of 2021 after an almost two-year suspension due to the COVID-19 pandemic's impact on its operations. The company also suspended its dividend in 2006 and didn't reinstate a payout until 2012.
In addition to paying its regular dividend, Ford declared a special supplemental dividend in early 2024 and again in early 2025 (the 2025 payment of $0.15 per share was the same as its quarterly dividend rate). Driving that additional payout was its strong free cash flow and the company's target to return 40% to 50% of its adjusted free cash flow to shareholders.
