Ford reports mixed third-quarter results, says 2027 earnings will be in line with this year — SkimNews
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- Ford posted adjusted EPS of 49 cents versus 40 cents expected, but automotive revenue of $46.08 billion narrowly missed the $46.24 billion estimate; overall revenue including credit fell roughly 2% to $49.5 billion and net income declined $400 million to $2 billion, while adjusted EBIT edged up to $2.7 billion.
- Ford generated adjusted free cash flow of $4.7 billion, roughly $2 billion above analysts' expectations, even as Ford Blue, Ford Pro and Ford Model e each underperformed on revenue.
- Ford narrowed its 2026 adjusted EBIT guidance to $10.5-$11 billion from $10-$11 billion and maintained adjusted free cash flow guidance of $6-$7 billion.
- Sherry House said 2027 earnings would be roughly level with 2026, citing this year's production problems and rising commodity costs; 2027 Canadian F-Series Super Duty output will replace F-150 production lost during retooling.
- Ford faces added 2027 costs from a next-generation EV, Canada-produced pickups and an expanded energy business; a $1.3 billion first-quarter tariff refund was largely offset by alternative-aluminum sourcing costs the company does not expect next year.
- Jim Farley called 2027 a "foundational year" toward Ford's previously announced 8% adjusted EBIT margin target for 2029, while the third-quarter margin was 5.4%.
- Ford Blue now expects $5.5 billion in 2026 pre-tax earnings, the high end of prior guidance; Ford Pro's EBIT is about $7 billion, Ford Model e is expected to lose about $4 billion, and Ford Credit's EBIT is about $2.8 billion.
Why it matters: The segment split is material: For 2026, Ford Blue guides to $5.5 billion in pre-tax earnings and Ford Pro to about $7 billion in EBIT, while Ford Model e carries about $4 billion in losses. With a 5.4% adjusted EBIT margin in Q3, flat 2027 earnings and an 8% goal for 2029, Ford's warranty and material savings carry the burden.
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