Ford raises low end of 2026 EBIT forecast after Q3 results

Ford Motor Company said on Oct. 28 that third-quarter revenue was $49.5 billion, down from $50.5 billion a year earlier, while adjusted earnings before interest and taxes, or adjusted EBIT, rose to $2.7 billion from $2.6 billion. The company also raised the low end of its full-year 2026 adjusted EBIT forecast.

Net income was $2 billion, or 50 cents per diluted share, compared with $2.4 billion, or 60 cents, a year earlier. Adjusted earnings per share were 49 cents, up from 45 cents. Wholesale vehicle sales fell 9% to 1,049,000 units.

Here's how the company did:

• Revenue: $49.5 billion vs. $50.5 billion a year earlier
• Adjusted EPS: 49 cents vs. 45 cents a year earlier
• Net income: $2 billion vs. $2.4 billion a year earlier
• Adjusted EBIT: $2.7 billion vs. $2.6 billion a year earlier

2026 guidance

The company now expects full-year adjusted EBIT of $10.5 billion to $11 billion. In its July 28 results it had given a range of $10 billion to $11 billion, so only the low end moved.

Adjusted free cash flow guidance remains $6 billion to $7 billion, and capital expenditures are still expected at $9.5 billion to $10.5 billion.

By segment, the company expects Ford Blue EBIT of about $5.5 billion, Ford Pro EBIT of about $7 billion, Ford Model e losses of about $4 billion and Ford Credit earnings before taxes of about $2.8 billion.

The outlook assumes a U.S. SAAR of 16.5 million units, commodity headwinds approaching $2.5 billion year over year, and $1 billion in material and warranty cost reductions, excluding tariffs and Novelis. It does not include an escalation of the Middle East conflict or a material downturn in the U.S. economy.

Ford President and CEO Jim Farley said Ford “delivered a strong quarter as we’re entering a defining phase of the company’s transformation.”

Chief Financial Officer Sherry House said the company is “on track to deliver our full-year adjusted EBIT expectations.”

Segment results

Ford Blue reported EBIT of $1.4 billion, down 10%. The company said that reflected lower volume from product discontinuations, the Middle East conflict and higher commodity costs, partly offset by favorable mix.

Ford Model e posted an EBIT loss of $1.1 billion, an improvement of 25% year over year. The company said the segment continues to optimize first-generation vehicles while ramping Ford Energy.

Ford Pro generated $1.7 billion in EBIT, down 16%, with revenue up 2% to $17.8 billion. The company cited higher commodity costs and temporary launch costs for Super Duty production at the Oakville Assembly Complex, partly offset by lower tariffs and favorable mix.

Ford Credit reported earnings before taxes of $803 million, up 27% from a year earlier. The company said the result reflects favorable mark-to-market on derivatives, healthy financing margins and a supportive used vehicle pricing environment.

Cash and dividend

Operating cash flow was $5.4 billion in the quarter, and adjusted free cash flow was $4.7 billion. At quarter end, the company had $25.3 billion in cash and $46.4 billion in liquidity.

The company declared a fourth-quarter regular dividend of 15 cents per share, payable Dec. 1 to shareholders of record on Nov. 10. That rate matches the 15 cents it declared in July, so it is not an increase.

For the first nine months, revenue was $141.1 billion, essentially unchanged from a year earlier, and adjusted EBIT was $8.6 billion, up from $5.7 billion. Special items cut pre-tax results by $4.5 billion over that period, mostly a $3.6 billion charge tied to the disposition of the BlueOval SK joint venture. Third-quarter special items were $0.1 billion.