ii view: Ford hybrid sales power to new record

Full-year US vehicle sales to 31 December

• Hybrid vehicles sales up 21.7% to 228,072
• Combustion engine sales up 5.5% to 1,891,939
• Electric vehicle sales down 14% to 84,113
• Total vehicle sales up 6% to 2,204,124

ii round-up:

Iconic US car and truck maker Ford Motor Co (NYSE:F) detailed record hybrid vehicle sales, helped by ongoing robust sales of the group’s F-150 pick-up truck.

Hybrid sales rose 17.6% in the fourth quarter, driving annual sales up 21.7% to 228,072. Demand for F-150 Hybrid version climbed 15% year-over-year to a record 84,934 trucks, making it America’s best-selling full-size hybrid pickup.

Shares in the S&P 500 company drifted marginally lower in US trading having come into this latest news up by a third in 2025. The S&P 500 index rose 16.4% last year, while electric vehicle giant Tesla Inc (NASDAQ:TSLA) climbed 11%.

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Ford operates across the three core divisions of Ford Pro providing commercial vehicles, Ford Blue, offering combustible and hybrid vehicles, and Ford e making all-electric vehicles.

Internal combustion engines retained their mantle as Ford’s biggest US seller, rising 5.5% to 1.89 million. Electric-only powered sales fell 14% year-over-year to 84,113 vehicles.

The group’s F-series pick-up truck, combined across all-power versions, secured a 49th consecutive year as America’s best-selling truck and 44 years as America’s best-selling vehicle. Total F-series sales rose 8.3% to an annual total of 828,832 vehicles.

Total truck sales, including the group’s iconic Transit van, rose 9.5% to 1,268,749.

SUV related demand improved 1.6% to 890,042 vehicles with car sales up 3% to 45,333 units.

Ford management has been pursuing a series of performance improvement initiatives including cost cuts under its Ford Plus transition plan.

Fourth-quarter results are likely to be announced early February.

ii view:

Began in 1903, Ford today employs around 170,000 people. The group’s home US market remains by far its biggest market at just over two-thirds of sales last year, with Canada, the UK and Mexico other important sales destinations. Combustible and hybrid vehicles under Ford Blue made most revenues in 2024 at 64%. That was followed by commercial vehicles at 29%, Ford finance or credit at 5% and all electric vehicles 2%. The group’s competitors include Volkswagen AG (XETRA:VOW), General Motors Co (NYSE:GM) and Tesla.

For investors, President Trump's tariffs cost the company $700 million during the third quarter. Previously announced difficulties for aluminium supplier Novelis are hindering production, with full year 2025 profits expected to be impacted. The e division remains loss-making, while a forecast price/earnings (PE) ratio above the three- and 10-year averages may suggest the shares are not obviously cheap.

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On the upside, market share has gained 0.6% to 13.2% in Ford's key US market in 2025. A diversity of both product and geographical regions exists. A fifth consecutive quarter of year-over-year cost reductions was made during Q3 under management initiatives, while cash held of $33 billion as of late September suggests a robust balance sheet.

On balance, and while headwinds not of its own making generate caution, a forward dividend yield of over 4% should keep investors interested whether for income or capital gains.

Positives

• Action to restructure the business taken
• Attractive dividend yield (not guaranteed)

Negatives

• Trade tariff headwind
• Previous staff industrial action

The average rating of stock market analysts:

Hold