SHARE-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2025

The fair value of vested RSUs and RSSs as well as the compensation cost for the years ended December 31 were as follows (in millions):

__________

(a) Net of tax benefit of $104 million, $100 million, and $92 million in 2023, 2024, and 2025, respectively.

Inputs and assumptions used to calculate the fair value at grant date through a Monte Carlo simulation were as follows:


	2023			2024			2025
Fair value per stock award	$	18.57		$	18.50		$	11.58
Grant date stock price	13.08			12.74			9.12
Assumptions:
Ford’s stock price expected volatility (a)	49.5		%	41.9		%	39.2		%
Expected average volatility of peer companies (a)	49.6			40.7			41.2
Risk-free interest rate	4.57			4.43			3.94

__________

(a)Expected volatility based on three years of daily closing share price changes ending on the grant date.

During 2025, activity for RSUs and RSSs was as follows (in millions, except for weighted-average fair value):


	Shares	Weighted- Average Fair Value
Outstanding, beginning of year	95.7	$	13.44
Granted (a)	56.2	10.54
Vested (a)	(39.6)	13.76
Forfeited	(8.1)	13.73
Outstanding, end of year (b)	104.2	12.04

__________

(a)Includes shares awarded to non-employee directors.

(b)Excludes 1,436,600 non-employee director shares that were vested but unissued at December 31, 2025.