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Ford raised the lower end of its full-year adjusted profit forecast Wednesday, even as third-quarter revenue fell 2% and net income declined. A smaller loss in its electric-vehicle business helped offset weaker profits in its gasoline-and-hybrid and commercial-vehicle operations.
The automaker now expects 2026 adjusted earnings before interest and taxes of $10.5 billion to $11 billion, compared with its previous range of $10 billion to $11 billion, according to its official third-quarter earnings release. Its adjusted free cash flow forecast remains $6 billion to $7 billion.
Quarterly revenue was $49.5 billion, down from $50.5 billion a year earlier. Net income fell to $2 billion from $2.4 billion, while diluted earnings per share declined to 50 cents from 60 cents.
Adjusted EBIT rose to $2.7 billion from $2.6 billion. Adjusted earnings per share increased to 49 cents from 45 cents. Those adjusted measures exclude items included in Ford’s generally accepted accounting principles results.
EV losses narrow while other vehicle profits fall
Ford Model e reported an EBIT loss of $1.06 billion, compared with a $1.41 billion loss a year earlier. Its revenue fell 31% to $1.2 billion. Ford said it was working to improve the profitability of its first-generation electric vehicles while investing in its new Universal Electric Vehicle platform and Ford Energy.
Ford Blue’s EBIT declined 10% to about $1.4 billion. The company cited lower volume tied to product discontinuations, the regional impact of the Middle East conflict and higher commodity costs, partly offset by a more favorable vehicle mix.
Ford Pro’s EBIT fell 16% to about $1.7 billion, reflecting higher commodity costs and temporary launch costs for Super Duty production at the Oakville Assembly Complex. Lower tariffs and a more favorable product mix partly offset those pressures. Ford Credit’s earnings before taxes rose 27% to $803 million.
Operating cash flow fell to $5.4 billion from $7.4 billion, while adjusted free cash flow increased to $4.7 billion from $4.3 billion. Ford ended the quarter with $25.3 billion in cash and $46.4 billion in liquidity.
The company declared a regular quarterly dividend of 15 cents per share, payable December 1 to shareholders of record November 10.
Ford’s full-year outlook excludes the potential effects of a significant escalation of the Middle East conflict or a material downturn in the U.S. economy. The company said either could substantially affect industry demand.
JBizNews Desk | Dearborn, Michigan
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