Press release·10/24/2025 10:51:11

Overview of Ford’s Financial Performance

Ford Motor Company reported strong financial results in the third quarter of 2025, with net income attributable to the company reaching $2,447 million. This represented a significant increase from the $892 million in net income reported in the same period a year earlier.

The company’s adjusted EBIT, which excludes certain special items, was $2,586 million in the third quarter, up slightly from $2,550 million a year ago. This translated to an adjusted EBIT margin of 5.1%, down from 5.5% in the prior-year quarter.

For the first nine months of 2025, Ford reported net income of $2,882 million, down from $4,055 million in the same period of 2024. Adjusted EBIT for the first nine months was $5,745 million, a decline from $8,070 million a year earlier.

Revenue and Profit Trends

Ford’s revenue increased 9% in the third quarter to $50,534 million, up from $46,196 million a year ago. This was driven by higher wholesale volumes, favorable pricing, and improved product mix. For the first nine months, revenue rose 3% to $141,377 million.

The company’s net income margin improved significantly in the third quarter, reaching 4.8% compared to 1.9% a year earlier. This was primarily due to lower special item charges, including reduced costs related to the cancellation of a previously planned all-electric SUV program, as well as increased tax benefits.

However, Ford’s adjusted EBIT margin declined to 5.1% in the third quarter from 5.5% a year ago. This was mainly attributable to higher costs, including tariffs, and unfavorable foreign exchange, which offset the benefits of higher volume and pricing.

Looking at the individual business segments:

• Ford Blue (traditional internal combustion vehicles) saw its EBIT decline 5% in the third quarter due to higher costs and unfavorable exchange, though this was partially offset by improved pricing and volume.

• Ford Model e (electric vehicles) reported a larger EBIT loss of $1,410 million, up from a $1,231 million loss a year earlier, as adverse pricing and one-time charges related to a plant changeover offset the benefits of higher volume.

• Ford Pro (commercial vehicles) delivered a 9% increase in EBIT to $1,985 million, driven by stronger volume and favorable exchange, though this was partially offset by lower fleet pricing.

Ford Credit, the company’s financing arm, reported a 16% increase in earnings before taxes to $631 million, reflecting higher financing margin and receivables, partially offset by other charges.

Strengths and Weaknesses

One of Ford’s key strengths is its diversified business model, with the Ford Blue, Ford Model e, and Ford Pro segments providing a balance of traditional and emerging revenue streams. The strong performance of Ford Pro in particular has been a bright spot, demonstrating the company’s ability to capitalize on the growing commercial vehicle market.

However, the company continues to face challenges in its electric vehicle strategy. While Ford Model e reported higher volumes, the segment remained deeply unprofitable due to pricing pressures and one-time charges. The slower-than-anticipated adoption of EVs industry-wide has forced Ford to adjust its investments and product plans, leading to significant expenses.

Another weakness is the impact of external factors, such as tariffs and foreign exchange, on Ford’s cost structure and profitability. The company has limited control over these macroeconomic conditions, which can significantly affect its bottom line.

Ford’s balance sheet remains strong, with $32.9 billion in company cash and $54.0 billion in total liquidity at the end of the third quarter. This provides the company with ample resources to weather potential economic downturns and invest in future growth opportunities.

Outlook and Future Prospects

Looking ahead, Ford has provided guidance for full-year 2025, expecting adjusted EBIT in the range of $6.0 billion to $6.5 billion and adjusted free cash flow of $2.0 billion to $3.0 billion.

The company’s outlook assumes continued challenges in the electric vehicle market, with the Novelis business expected to be a significant headwind in the fourth quarter of 2025. Ford is working to mitigate these issues and expects Novelis to be less of a drag on its performance in 2026.

Other key assumptions in Ford’s guidance include a U.S. industry sales volume of around 16.8 million units, a 0.5% increase in U.S. industry pricing, and net cost improvements of approximately $1.0 billion, excluding the impact of tariffs.

The company remains focused on executing its Ford+ plan, which aims to improve cost competitiveness and deliver a compelling lineup of electric and traditional vehicles. However, the pace of EV adoption and the evolving regulatory landscape continue to pose risks and uncertainties that could impact Ford’s strategy and financial performance.

Overall, Ford’s third-quarter results demonstrate the company’s ability to navigate a challenging operating environment, though the path ahead remains uncertain. Investors will be closely watching the company’s progress in transitioning to electric vehicles, managing costs, and capitalizing on opportunities in the commercial vehicle market.