Ford Motor (F) earnings Q3 2025

DETROIT – Ford Motor It beat Wall Street’s third-quarter earnings expectations but lowered its 2025 guidance due to the effects of a supplier fire that disrupted production of highly profitable large trucks and SUVs.

The Detroit automaker said the cost of last month’s fire at a New York plant of aluminum supplier Novelis is expected to be between $1.5 billion and $2 billion, but it expects to alleviate much of that this year and next, largely by ramping up production of affected vehicles when supplies become more available.

Ford shares first fell in extended trading Thursday, then rose roughly 4%. It closed at $12.34 per share on Thursday, and the stock is up 24% so far this year.

Ford said the total cost of the fire to its business next year is expected to be less than $1 billion, as it announced plans Thursday. “to increase significantly” USA pickup truck production. That includes adding 1,000 workers early next year at factories producing the vehicles in Michigan and Kentucky.

The automaker expects next year’s additional production to make up for about half of the 100,000 units it expects to lose due to this year’s fire.

“We are working extensively with Novevis and others to source aluminum that can be processed in the facility’s remaining operating cold rolling section, while also working to restore overall plant production. We have made significant progress in a short period of time to minimize the impact in 2025 and recover production in 2026,” Ford CEO Jim Farley said in a statement. he said.

Ford Chief Operating Officer Kumar Galhotra said the fire occurred in one of the three main sections of the plant – the hot mill – and unaffected areas continued to operate. The affected portion of the plant is expected to be back in operation sooner than expected in late November or early December, he said.

Ford’s new 2025 forecast calls for adjusted earnings before interest and taxes of between $6 billion and $6.5 billion, down from $6.5 billion to $7.5 billion as of July; adjusted free cash flow fell from $3.5 billion to $4.5 billion, rising from $2 billion to $3 billion, and capital spending remained the same at about $9 billion.

Ford CFO Sherry House said that without supplier fire, the company plans to raise adjusted EBIT to more than $8 billion rather than cut its 2025 target.

RBC Markets analyst Tom Narayan backed the supplier fire and changes in tariff costs, calling the guidance change an “impactful” increase in a note on Thursday.

Ford reduced expected tariff costs by $1 billion to about $2 billion; Half of that figure is expected to be offset by other actions due to changes made by the Trump administration on Friday, which include extending exemptions and tariffs on American-made vehicles.

According to average analyst estimates compiled by LSEG, Wall Street’s expectations are as follows:

• Earnings per share: 45 cents adjusted etc. 36 cents expected
• Automotive revenue: 47.19 billion dollars, while the expectation was 43.08 billion dollars

Ford said the fire did not have a significant impact on its third-quarter results, but it will impact its fourth-quarter results.

The company’s third-quarter revenue, including its financial arm, was $50.5 billion; This was a quarterly record and a 9% increase over the same period the previous year. Its net income for the quarter was $2.4 billion, up from $900 million a year earlier, and its adjusted earnings before interest and taxes were $2.6 billion. Both included a negative net tariff-related impact of $700 million in the third quarter.

Adjusted earnings exclude one-time or special items, some interest and taxes, and other financials that are not considered “core” to the company’s operations.

“Our performance in the quarter demonstrates that the Ford+ plan is delivering consistent improvement. Our core business is becoming stronger, more efficient, more agile and increasingly resilient,” House told media on Thursday.

The Ford+ plan is a turnaround and cost recovery plan under Farley, who began running the automaker more than five years ago. The company said it is on track to cut costs by $1 billion this year as part of the plan.

Ford’s third-quarter results were led by its “Pro” commercial and fleet business, which reported EBIT results of nearly $2 billion, up $172 million from the prior year. Its traditional operations, known as “Ford Blue,” reported EBIT earnings of $1.54 billion, while its “Model e” electric vehicle business widened its loss by $179 million to $1.41 billion from the previous year.