Ford to record $600 million pension charge in fourth quarter
A 2025 Ford Lightning electric vehicle (EV) at a Ford dealership in Antioch, California, United States, on Thursday, December 18, 2025.
David Paul Morris | Bloomberg | Getty Images
DETROIT — Ford Motor said it would report a pre-tax charge of $600 million in its fourth-quarter results due to adjustments to retirement plans and other post-retirement benefits for employees.
Detroit automaker said Special expenses that would affect net income but not adjusted results or cash are allocated between domestic plans and non-U.S. plans
“The remeasurement loss for the U.S. plans was largely driven by actuarial losses compared to plan assumptions,” Ford said in a public statement after markets closed on Thursday. “Remeasurement loss for non-U.S. plans was largely driven by changes in key plan measurement assumptions, such as improved life expectancy.”
On an after-tax basis, Ford said the remeasurement loss is expected to reduce its net income by approximately $500 million, depending on the tax impact in jurisdictions where the remeasurement gains and losses occur.
Ford said its retirement plans are fully funded and the fees won’t change its expectations for retirement contributions in 2026.
The new special charges are on top of about $19.5 billion in special items the company announced last month related to a restructuring of business priorities and a pullback on all-electric vehicle investments, most of which Ford said would occur in the fourth quarter.
Automakers often exclude “special items,” or one-time charges, from their adjusted financial results to give investors a clearer picture of their ongoing underlying business operations.
Ford is scheduled to report fourth quarter results After markets closed on February 10.
