Ford (F) expects to take a pre-tax remeasurement loss of $600M in the fourth quarter of 2025 related to its pension and other postretirement employee benefit (OPEB) plans with half of that loss associated with U.S. pension plans.
According to a filing with the U.S. Securities and Exchange Commission, Ford (F) says the remeasurement loss for U.S. plans was largely driven by actuarial losses compared to plan assumptions, while non-U.S. remeasurement costs were a result of measurement assumptions, including improved life expectancy.
This loss—on an after-tax basis—is expected to decrease Ford’s (F) Q4 net income by ~$500M and, as a special item that does not reflect ongoing operations, will not affect the company’s adjusted EBIT.
Including the impact of remeasurement losses during 2025, Ford (F) expects the underfunded status of its pension and OPEB plans to be ~$200M and $4.4B, respectively, at year-end 2025, compared with $500M and $4.4B, respectively, at year-end 2024.
Ford (F) reports fourth quarter results after the close on February 10.