TLDR
- Ford posted Q3 operating profit of $2.6 billion on record $50.5 billion revenue, topping Wall Street’s $2 billion profit forecast on $47 billion revenue.
- Earnings per share reached 45 cents, beating the 36 cent analyst consensus despite $700 million in tariff-related costs.
- Full-year guidance dropped to $6 billion-$6.5 billion from $6.5 billion-$7.5 billion due to supplier fire costs of $1.5 billion-$2 billion.
- Ford Pro generated $2 billion EBIT while EV losses narrowed to $28,000 per vehicle from $38,000 last year.
- The automaker will boost F-series production by 50,000 trucks in 2026, adding 1,000 jobs to recover from supply chain disruptions.
Ford Motor reported third quarter results that exceeded Wall Street expectations. The automaker delivered operating profit of $2.6 billion on record revenue of $50.5 billion.
Analysts had forecast operating profit of $2 billion on $47 billion in revenue. Earnings per share came in at 45 cents, beating the 36 cent consensus estimate.
The company sold 546,000 vehicles in the U.S. during the quarter. This marked an 8% increase from the same period last year.
Revenue climbed 9.6% compared to the third quarter of 2024. Ford matched its year-ago operating profit despite facing $700 million in tariff costs.
Shares rose 3.2% in after-hours trading following the earnings announcement. The stock closed regular trading down 0.7% on Thursday.
Business Segments Deliver Mixed Performance
Ford Pro led the company’s divisions with $17.4 billion in revenue. The commercial vehicle unit generated $2 billion in EBIT during the quarter.
Ford Blue contributed $1.5 billion in EBIT from its traditional gas-powered vehicle lineup. Revenue growth outpaced wholesale unit sales increases in this segment.
The electric vehicle division continues to lose money. Ford Model e reported $1.4 billion in losses as the company invests in electrification.
Per-vehicle losses in the EV business improved to about $28,000. This compares to roughly $38,000 per car a year ago.
Ford Credit posted $631 million in operating profit. The financing arm’s results increased 16% year over year.
The company generated $7.4 billion in operating cash flow. Adjusted free cash flow totaled $4.3 billion for the quarter.
Supplier Fire Drives Guidance Revision
Ford lowered its full-year 2025 operating profit outlook to $6 billion-$6.5 billion. The previous range stood at $6.5 billion-$7.5 billion.
A fire at aluminum supplier Novelis forced the change. The incident will cost between $1.5 billion and $2 billion in lost production and higher material costs.
Without the Novelis impact, guidance would have increased to approximately $7.5 billion-$8.5 billion. This demonstrates the underlying strength of Ford’s core operations.
The company plans to increase F-series truck production by more than 50,000 units in 2026. Ford will create 1,000 new jobs to support the production increase and offset losses from the supplier fire.
Management expects adjusted free cash flow of $2 billion-$3 billion for 2025. The board declared a 15 cent per share dividend for the fourth quarter.
Stock Performance and Market Outlook
Ford shares have gained 26% year-to-date through Thursday’s close at $12.43. The stock traded as low as $8.44 in April before rallying.
Analysts maintain a hold rating consensus on the stock. Coverage includes 3 buy ratings, 18 hold ratings, and 3 sell ratings.
The median 12-month price target sits at $11.00. This implies a 14.2% discount to the recent closing price of $12.56.
U.S. auto demand has remained resilient with 4% growth year over year through August. Ford was the final major U.S. automaker to report third quarter earnings.
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