Ford reports mixed third quarter results and shares 2027 earnings outlook

Ford Motor reported mixed results for the third quarter, beating earnings estimates while slightly missing on revenue.

Earnings And Guidance

The Detroit automaker narrowed its guidance for adjusted earnings before interest and taxes for this year to between $10.5 billion and $11 billion, shifting from a previous outlook of $10 billion to $11 billion. The company kept its adjusted free cash flow guidance for this year between $6 billion and $7 billion. Ford CFO Sherry House stated that earnings next year will be roughly in line with this year's expected results. House pointed to offsetting factors including production issues and rising commodity costs. She noted that a $1.3 billion tariff refund in the first quarter of this year was mostly offset by extra costs from alternative aluminum sourcing that will not repeat next year. Ford expects F-Series Super Duty truck production in Canada in 2027 to cover lost output from F-150 factories as they retool for new models.

Financial Breakdown

House told reporters that next year marks the third year of increasing warranty and material cost savings, which will now extend to structural costs across the company. Wall Street analysts had mixed views ahead of the results on whether Ford could keep profits steady in 2027. Ford faces several costs next year, including rolling out new or redesigned models, next-generation electric vehicles, Canada-produced pickups, and an enhanced energy business. StreetAccount reported that missed revenue in the third quarter happened because all main business units underperformed compared to expectations. Ford Blue pre-tax earnings are now expected to reach $5.5 billion, which hits the high end of prior guidance. Ford Pro is anticipated to bring in about $7 billion in EBIT for the year, while Ford Model e expects losses of around $4 billion. Ford Credit is expected to record about $2.8 billion in EBIT for 2026. Overall revenue fell by roughly 2% from the third quarter of last year to reach $49.5 billion. Net income dropped by $400 million compared to the previous year to $2 billion, while adjusted earnings before interest and taxes rose slightly to $2.7 billion. In the third quarter of last year, Ford posted $47.19 billion in automotive revenue, $2.4 billion in net income, and adjusted earnings per share of 45 cents.

Context

Automakers frequently adjust their financial guidance throughout the year as supply chain conditions, material costs, and consumer demand shift. Large manufacturing firms also balance ongoing investments in new vehicle models and electric vehicle technology against traditional gas-powered truck revenue. This financial reporting helps investors gauge how well traditional car companies manage production changes and rising operational costs.