Ford Q3 Core Profit Rises to $2.7B, Beats Estimates; Guidance Floor Lifted
F is trading near its 52-week low of $11.11 (7.6% above the low).
Summary
Ford posted Q3 core profit of $2.7 billion and adjusted EPS of 50 cents, beating the 40-cent consensus, with revenue of $49.5 billion and net income of $2 billion. The quarter came despite higher commodity costs — Ford now expects nearly $2.5 billion for the full year, up from about $2 billion, citing Middle East conflict, copper and steel prices, fuel and chips. Management raised the low end of its full-year adjusted EBIT guidance by $500 million to between $10.5 billion and $11 billion, with adjusted free cash flow guidance remaining $6 billion to $7 billion, and said 2027 core profitability should be roughly in line with 2026. Operating cash flow was $5.4 billion and adjusted free cash flow $4.7 billion, and the company ended the quarter with $25.3 billion cash and $46.4 billion liquidity. Expectations include warranty and material cost reduction and improving year-over-year profitability in Ford Model E, while Ford Blue reported $1.4 billion in EBIT, down 10%, and Ford Model E reported an EBIT loss of $1.1 billion, an improvement of 25% year over year. The company declared a $0.15 Q4 dividend. The F-150 production disruption from a supplier issue is largely resolved, with the CFO saying Novelis' operational recovery is largely behind us. GM shares fell last week on its own commodity-cost warning, so Ford's beat and guidance lift stands out against that backdrop; Ford shares are down about 10% this year. Watch the US-Mexico-Canada trade talks and the pending January 1 doubling of US steel and auto tariffs on Canada, which Ford has flagged as a competitive risk.
Updated with an SEC 8-K filing · What changed
Updates
· SEC 8-K — Ford's Q3 operating cash flow was $5.4 billion and adjusted free cash flow $4.7 billion; it ended the quarter with $25.3 billion cash and $46.4 billion liquidity.
At the time of this announcement, F was trading at $11.95 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $47.7B. The 52-week trading range was $11.11 to $17.78. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Reuters.