The fourth-quarter earnings season for the Auto-Tires-Trucks sector is in full swing, with Tesla, General Motors, and PACCAR having released their results. Tesla and General Motors exceeded earnings expectations, while PACCAR matched them. According to the latest earnings trend report, the auto sector is expected to see a 12.9% decline in earnings year-over-year for Q4 2025, with revenues projected to contract by 5.7%.
Vehicle sales in the U.S. dropped significantly in the fourth quarter, falling to an annualized rate of 15.6 million from 16.4 million in Q3, marking it as the weakest quarterly performance of the year. The average new vehicle price reached $50,326 in December, exerting pressure on consumers. Additionally, electric vehicle sales fell 46% compared to Q3, totaling 234,000 units.
Looking ahead, companies such as Ford, QuantumScape, BorgWarner, and Lear Corp. are positioned to outperform estimates in this earnings season. Ford is set to report on February 10, with a projected earnings estimate of 17 cents per share and revenues of $41 billion. QuantumScape and BorgWarner will report on February 11, with loss estimates narrowing for QuantumScape, while BorgWarner anticipates earnings of $1.16 per share.
