Ford reports mixed third-quarter results, says 2027 earnings will be in line with this year

Summary

• Ford Motor expects 2027 earnings to be roughly in line with 2026 results.
• The company reported third-quarter adjusted free cash flow of $4.7 billion, which is approximately $2 billion higher than analyst expectations.
• Third-quarter earnings per share were 49 cents adjusted, beating the 40 cents expected, while automotive revenue of $46.08 billion slightly missed the $46.24 billion estimate.
• Ford narrowed its 2026 adjusted earnings before interest and taxes guidance to between $10.5 billion and $11 billion from a previous range of $10 billion to $11 billion.
• The company maintained its 2026 adjusted free cash flow guidance of between $6 billion and $7 billion.
• A $1.3 billion tariff refund in the first quarter was largely offset by additional costs from alternative aluminum sourcing.
• Production of F-Series Super Duty trucks in Canada in 2027 will offset expected production losses at F-150 factories due to retooling.
• Ford CEO Jim Farley described 2027 as a foundational year toward a target of an 8% adjusted EBIT margin by 2029.
• The company reported a 5.4% adjusted EBIT margin during the third quarter.
• Ford Blue unit pre-tax earnings are now expected to be $5.5 billion for 2026.
• Ford Pro is anticipated to generate about $7 billion in EBIT for 2026, while Ford Model e losses are expected to be about $4 billion.
• Ford Credit is expected to record about $2.8 billion in EBIT for 2026.
• Overall revenue for the third quarter was $49.5 billion, a decrease of roughly 2% compared to the same period last year.
• Net income for the third quarter was $2 billion, down $400 million from the prior year, while adjusted earnings before interest and taxes rose slightly to $2.7 billion.
• Multiple cost-incurring efforts are underway, including the rollout of new or redesigned models, next-generation EVs, Canada-produced pickups, and enhancements to the energy business.