Morgan Stanley analysts caution that Ford could face significant headwinds in 2026 as global memory-chip shortages threaten to constrain assembly lines and rising commodity costs such as aluminum and steel could erode profit margins by as much as 100 basis points. The analysts estimate that a 10% increase in commodity prices would translate to an additional $1.2 billion in input costs for Ford’s manufacturing operations. They also note that any further disruption in semiconductor supply could delay production of popular models by up to six weeks, potentially reducing North American vehicle volumes by 50,000 units in the first half of the year.

The National Highway Traffic Safety Administration has ordered Ford to recall 119,075 vehicles in the U.S. due to an engine block heater defect that can crack, leak coolant and short circuit, posing a risk of under-hood fire. The recall spans certain 2013–2018 Focus sedans, 2013–2019 Escape crossovers, 2015–2016 Lincoln MKC SUVs, 2019 Explorer SUVs and the 2024 Explorer model. Ford will replace the defective heater free of charge and expects to mail interim owner notifications by February 13, 2026, with the final remedy rollout slated for April 2026.

After announcing in December that it would scale back its electric-truck program and refocus on hybrids and combustion vehicles, Ford’s stock climbed 33% last year. The shift requires a $19.5 billion non-cash impairment charge related to its unprofitable EV division, yet executives argue the move will enhance future margins. Through the first three quarters of last year, Ford reported revenue growth of 3% to $141.4 billion, while adjusted operating income declined from $8.1 billion to $5.7 billion, largely reflecting a supplier fire in New York. Investors now forecast adjusted earnings per share of $1.52 for 2026, up from a projected $1.10 for 2025.

Ford closed 2025 with its strongest annual sales performance since 2019, delivering 2.2 million vehicles in the U.S., a 6% increase year-over-year, and lifting market share to 13.2%. The F-Series lineup led the way with sales of over 820,000 trucks, up 8.3%, outpacing its nearest competitor by nearly 250,000 units. Hybrid models also hit a new milestone, with 228,000 units sold, marking both a quarterly and annual record. Management credits the ‘‘power of choice’’ strategy—offering gas, hybrid and electric options—for the sustained share gains over ten consecutive months of outperformance in 2025.