Ford Motor Company — Third Quarter 2026 Earnings Summary

Financial Performance:

• Third-quarter revenue was $49.5 billion, a 2% decrease from $50.5 billion in the prior year period.
• Net income for the quarter was $2.0 billion, down from $2.4 billion in the prior year.
• Adjusted EBIT was $2.7 billion, up 4% from $2.6 billion in the prior year, with an adjusted EBIT margin of 5.4% compared to 5.1% in the prior year.
• Operating cash flow was $5.4 billion, a decrease of $2.0 billion from $7.4 billion in the prior year.
• Adjusted free cash flow was $4.7 billion, an increase of $0.4 billion from $4.3 billion in the prior year.
• Diluted EPS was $0.50, down from $0.60 in the prior year; adjusted diluted EPS was $0.49, up from $0.45 in the prior year.
• Adjusted ROIC for the trailing four quarters ended September 30, 2026, was 13.3%, up from 10.1% in the prior year.
• At quarter-end, the company held $25.3 billion in cash and $46.4 billion in total liquidity.
• Total company revenue for the first nine months was $141.1 billion, flat year-over-year, while net income increased to $3.3 billion from $2.9 billion.
• First nine-month adjusted EBIT was $8.6 billion, up from $5.7 billion, with an adjusted EBIT margin of 6.1% compared to 4.1% in the prior year.

Guidance and Future Outlook:

• Ford raised the low end of full-year 2026 adjusted EBIT guidance to between $10.5 billion and $11 billion (previously $10 billion to $11 billion).
• Full-year adjusted free cash flow guidance remains $6 billion to $7 billion.
• Full-year capital expenditures guidance remains $9.5 billion to $10.5 billion.
• Segment guidance for full-year 2026 includes Ford Blue EBIT of approximately $5.5 billion, Ford Pro EBIT of approximately $7 billion, Ford Model e losses of approximately $4 billion, and Ford Credit EBT of approximately $2.8 billion.
• Guidance assumes a U.S. SAAR of 16.5 million units, commodity headwinds approaching $2.5 billion year-over-year, U.S. industry pricing approximately 100 basis points higher year-over-year, and $1 billion in material and warranty cost reductions.
• Management targets an 8% adjusted EBIT margin by 2029.
• Guidance excludes potential impacts of a significant escalation of the conflict in the Middle East or a material downturn in the U.S. economy.

Business Segments and Product Lines:

• Ford Blue: Revenue was $27.1 billion (down 3%); EBIT was $1.4 billion (down 10%); wholesale units were 657,000 (down 10%). Lower volume was driven by product discontinuations, Middle East conflict impacts, and higher commodity costs, partially offset by favorable mix.
• Ford Model e: Revenue was $1.2 billion (down 31%); EBIT loss was $1.1 billion, an improvement of 25% year-over-year; wholesale units were 34,000 (down 31%). The segment is optimizing first-generation vehicles and investing in the new UEV platform and Ford Energy.
• Ford Pro: Revenue was $1.78 billion (up 2%); EBIT was $1.7 billion (down 16%); wholesale units were 358,000 (down 4%). Headwinds included higher commodities and temporary launch costs for Super Duty production at Oakville, partially offset by lower tariffs and favorable mix.
• Ford Credit: Earnings before taxes were $803 million, up 27% year-over-year, driven by favorable mark-to-market on derivatives, healthy financing margins, and supportive used vehicle pricing.
• The company is launching the Universal Electric Vehicle (UEV) platform, Ford Energy, an all-new F-150, and a new lineup of vehicles globally.
• Software services and parts are showing record growth.

Market and Competitive Landscape:

• Total company wholesale units for the third quarter were 1,049,000, a 9% decrease from 1,156,000 in the prior year.
• First nine-month wholesale units were 3,023,000, a 9% decrease from 3,312,000 in the prior year.
• Ford Blue wholesale units decreased 10% to 657,000; Ford Model e decreased 31% to 34,000; Ford Pro decreased 4% to 358,000.
• The company faces commodity headwinds approaching $2.5 billion year-over-year.
• U.S. industry pricing is expected to be approximately 100 basis points higher year-over-year.

Risks and Challenges:

• Risks include potential impacts from a significant escalation of the conflict in the Middle East or a material downturn in the U.S. economy.
• Forward-looking statements involve risks such as product defects, recall campaigns, supply chain disruptions, labor issues, and geopolitical developments.
• The company faces competition in the automotive, digital, and software services industries, including pricing pressure from industry excess capacity.
• Inflationary pressure, fluctuations in commodity and energy prices, and currency exchange rates could significantly affect results.
• Dependence on sales of larger, more profitable vehicles, particularly in the United States, presents a risk if industry sales volume declines.
• Government incentives for electrified products could be subject to reduction, termination, or clawback.

Management Commentary and Tone:

• CEO Jim Farley stated the company delivered a strong quarter entering a "defining phase" of transformation, highlighting the launch of the UEV platform, Ford Energy, and new vehicle lineups.
• Farley noted that cost actions and record growth in software services and parts demonstrate growth beyond the vehicle sale toward the 2029 margin goal.
• CFO Sherry House expressed confidence in delivering full-year adjusted EBIT expectations, citing progress on warranty and material cost reduction objectives and improved profitability in Ford Model e.
• Management emphasized an intense focus on driving efficiencies, managing rising inflationary costs, and improving capital efficiency through smarter investments and strategic partnerships.

Other Key Points:

• The company declared a fourth-quarter regular dividend of 15 cents per share, payable on December 1 to shareholders of record on November 10.
• Ford Blue EBIT margin improved to 5.8% for the first nine months from 3.1% in the prior year.
• Ford Model e EBIT margin improved to -79.1% for the first nine months from -66.7% in the prior year, though the segment continues to optimize for profitability.
• Ford Pro EBIT margin was 10.1% for the first nine months, down from 10.9% in the prior year.
• The company reported a disposition of investment in BOSK with non-cash charges of $2.9 billion in the first nine months of 2026.
• Special items for the first nine months of 2026 included $0.8 billion related to EV program cancellations announced in December 2025 and $3.6 billion related to the BOSK JV disposition.
• Ford employs approximately 170,000 people worldwide.