Ford Motor announced that its fourth-quarter results will include a $600 million pre-tax charge, impacted by adjustments to employee pension plans and other post-retirement benefits.
This special charge will affect the company's net profit but will not impact its adjusted earnings or cash flow. The expenses are related to benefit plans both in the United States and overseas.
Last month, the automaker had already disclosed plans to record approximately $19.5 billion in special item expenditures as it shifts its strategic focus and scales back investments in its electric vehicle business.
On December 18, 2025, a 2025 Ford F-150 Lightning all-electric vehicle was seen at a Ford dealership in Antioch, California. After years of unsuccessful efforts to make its electric vehicle business profitable, Ford will now book a comprehensive $19.5 billion restructuring charge related to this operation.
Ford stated that due to adjustments to employee pension plans and other post-retirement benefit programs, it will record a $600 million pre-tax charge in its fourth-quarter earnings.
The Detroit-based automaker indicated that this special item will weigh on net income but will not affect adjusted results or cash flow. The costs are allocated across both domestic and international benefit plans.
In a public filing made after U.S. markets closed on Thursday, Ford explained, "The remeasurement loss for U.S. benefit plans was primarily driven by actuarial losses deviating from plan assumptions, while losses for overseas plans mainly resulted from adjustments to key measurement assumptions, such as increased life expectancy."
Ford noted that after accounting for the tax impact of remeasurement gains and losses across different jurisdictions, this after-tax remeasurement loss is expected to reduce net profit by approximately $500 million.
The company emphasized that its retirement benefit plans remain fully funded, and the recorded charge will not alter its pension contribution schedule for 2026.
This newly announced special charge is in addition to the roughly $19.5 billion in special item expenditures disclosed last month. Those earlier charges are tied to Ford’s strategic pivot and reduced investment in all-electric vehicles, with the majority expected to be recognized in the fourth quarter.
Automakers often exclude special or one-time items from adjusted financial results to provide investors with a clearer view of core business performance.
Ford is scheduled to report its fourth-quarter earnings after the market closes on February 10.
