Ford Motor reported third-quarter results that presented a mixed picture for the Detroit automaker. The company exceeded Wall Street’s earnings expectations but fell slightly short on revenue targets. Ford generated adjusted free cash flow of $4.7 billion during the quarter, approximately $2 billion higher than analyst anticipations.
The automaker narrowed its 2026 guidance for adjusted earnings before interest and taxes to between $10.5 billion and $11 billion, a tighter range compared with its previous outlook of $10 billion to $11 billion. Ford maintained its adjusted free cash flow guidance for the year at between $6 billion and $7 billion. Ford Chief Financial Officer Sherry House stated that the company expects 2027 earnings to be roughly in line with this year’s results, citing various offsetting factors including production challenges and rising commodity costs. She noted that a $1.3 billion tariff refund received during the first quarter of this year would be largely offset by additional costs from alternative aluminum sourcing not expected to occur next year.
House indicated that production of F-Series Super Duty trucks in Canada during 2027 would compensate for anticipated lost production at F-150 factories undergoing retooling for new models. She also highlighted that 2027 would mark the third year of the company’s initiative to increase and improve warranty and material cost savings. Chief Executive Officer Jim Farley characterized 2027 as a foundational year as the company works toward a previously announced target of an 8% adjusted EBIT margin by 2029. The company reported a 5.4% margin during the third quarter.
Ford’s revenue for the third quarter declined roughly 2% compared with the same period a year earlier, reaching $49.5 billion. Net income fell $400 million to $2 billion, while adjusted earnings before interest and taxes rose slightly year-over-year to $2.7 billion. The company’s three main business segments—Ford Blue traditional operations, Ford Pro fleet, and Ford Model e electric vehicles—all underperformed relative to Wall Street expectations on revenue. For 2026, Ford Blue’s pre-tax earnings are anticipated at $5.5 billion, Ford Pro’s EBIT at approximately $7 billion, Model e losses at about $4 billion, and Ford Credit’s EBIT at about $2.8 billion.
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