Ford Motor Co. will devote about $10 billion this year to capital projects, an increase from 2025’s $8.7 billion, as its leaders adjust their spending plans after retreating from many of the auto giant’s electric-vehicle ambitions late last year.
As part of announcing Ford’s fourth-quarter results, President and CEO Jim Farley and CFO Sherry House also said they expect the company’s 2026 adjusted earnings before interest and taxes to be between $8 billion and $10 billion versus last year’s $6.8 billion. One of the drivers of that growth, they said, will be a more profitable product mix in part because money-losing EV sales will fall.
Farley and House are targeting an 8% adjusted EBIT margin for Ford by 2029. In 2024 and 2025, that measure was 5.5% and 3.6%, respectively. On a conference call with analysts, they said capex over the next few years will support that goal and emphasize higher-margin products as well as software services. This year, spending of between $9.5 billion and $10.5 billion includes about $1.5 billion for Ford Energy, the company’s nascent storage business that will require roughly $500 million in investment beyond 2026.
“The mix of our capital spending continues to shift. We have a new capital allocation process,” House said. “It's really pushing our capital into more accretive areas of the business […] Roughly 75% of our capital over the plan period is going into our higher-return, larger-truck and multi-energy portfolio. And then that balance, 25%, is your Ford Energy and continued Model e investments.”
As part of their 2026 forecast, executives said EBIT losses in Ford’s Model e division that makes EVs should shrink to between $4 billion and $4.5 billion from last year’s $4.8 billion. At the Ford Blue unit making internal-combustion vehicles, EBIT is expected to grow to more than $4 billion from $3 billion, and the Ford Pro work vehicles group is forecast to grow its EBIT to about $7 billion from $6.8 billion.
The EV restructuring and write-downs meant Ford posted a massive $11.1 billion net loss in the last three months of 2025. (The quarter also featured an unexpected $900 million in tariff costs because of a late-year change in credits for various parts.) The company wholesaled about 1.08 million vehicles, a 9% drop from late 2024, but improved its cash flows from operations to $3.9 billion from $3.0 billion.
Shares of Ford (Ticker: F) rose 2% to $13.85 on Feb. 11, the day after Farley and House reported the company’s Q4. They have now climbed about 25% over the past six months, a move that has grown the company’s market capitalization beyond $55 billion.
About the Author
Geert De Lombaerde
Senior Editor
A native of Belgium, Geert De Lombaerde has been in business journalism since the mid-1990s and writes about public companies, markets and economic trends for Endeavor Business Media publications, focusing on IndustryWeek, FleetOwner, Oil & Gas Journal, T&D World and Healthcare Innovation. He also curates the twice-monthly Market Moves Strategy newsletter that showcases Endeavor stories on strategy, leadership and investment and contributes to other Market Moves newsletters.
With a degree in journalism from the University of Missouri, he began his reporting career at the Business Courier in Cincinnati in 1997, initially covering retail and the courts before shifting to banking, insurance and investing. He later was managing editor and editor of the Nashville Business Journal before being named editor of the Nashville Post in early 2008. He led a team that helped grow the Post's online traffic more than fivefold before joining Endeavor in September 2021.