DETROIT — Ford Motor Company expects its earnings next year to remain roughly in line with the automaker’s anticipated results for this current fiscal year, company executives announced on Wednesday as the Detroit-based legacy manufacturer reported a mixed bag of financial results for the third quarter.
The announcement comes as the historic automotive giant continues to navigate a complex macroeconomic landscape marked by fluctuating commodity prices, tariff adjustments, and strategic corporate transformations. While Ford managed to outperform Wall Street’s expectations on third-quarter earnings, it fell slightly short of consensus revenue estimates. The financial figures underscore a transitional period for the company as it works tirelessly to stabilize the production of its lucrative F-Series pickup trucks following months of lingering supplier disruptions that have plagued operations for much of the past year.
"This quarter’s results reflect deliberate actions to improve profitability and deliver consistent financial returns," Ford Chief Financial Officer Sherry House told reporters during a financial conference call on Wednesday afternoon.
Despite the top-line revenue miss, Ford reported a standout performance in liquidity, posting a third-quarter adjusted free cash flow of $4.7 billion. This figure significantly outperformed expectations, coming in roughly $2 billion higher than what Wall Street analysts had been anticipating, according to data compiled by StreetAccount.
Alongside its quarterly performance breakdown, the Detroit automaker tightened its full-year 2026 financial guidance. Ford now expects its adjusted earnings before interest and taxes (EBIT) to land between $10.5 billion and $11 billion. This marks a slight narrowing compared with the company’s previous financial outlook, which projected adjusted EBIT of $10 billion to $11 billion. Meanwhile, the automaker firmly maintained its adjusted free cash flow guidance for the entirety of the year, projecting a range between $6 billion and $7 billion.
Looking ahead to the upcoming fiscal year, House stated that the company anticipates 2027 earnings to mirror this year’s results closely. She attributed this anticipated stability to several offsetting factors, noting that while the company faced unique pressures this year, upcoming operational shifts will balance out the ledger. Specifically, House pointed out that a significant $1.3 billion tariff refund secured during the first quarter of this year was largely counterbalanced by extra costs associated with alternative aluminum sourcing. Because Ford does not expect to incur those same alternative aluminum expenses next year, the year-over-year financial comparison will effectively level out.
Furthermore, House explained that the scheduled production of Ford’s heavy-duty F-Series Super Duty trucks in Canada in 2027 will successfully offset temporary production lulls expected at its domestic F-150 manufacturing facilities as those plants undergo necessary retooling for upcoming next-generation models.
"Next year will be the third year on our journey of increasing and improving our warranty and material cost savings, and that’s getting extended to structural costs throughout the company as well in terms of savings," House emphasized during the call.
Echoing these sentiments, Ford Chief Executive Officer Jim Farley characterized 2027 as a deeply "foundational year" for the enterprise. The automaker is marching steadily toward its previously announced long-term corporate target of achieving an 8% adjusted EBIT margin by the year 2029. For the third quarter under review, Ford reported an adjusted EBIT margin of 5.4%, highlighting both the progress made and the ground yet to be covered.
In the lead-up to Wednesday’s earnings disclosure, Wall Street analysts held divergent views regarding whether Ford would be capable of successfully sustaining its profit momentum into 2027. The skepticism is rooted in the reality that the automaker is undertaking several capital-intensive initiatives that will inherently add to operational costs next year. Among these endeavors, Ford is rolling out a series of newly designed or completely redesigned vehicles—including its highly anticipated next-generation electric vehicles and the aforementioned Canada-produced pickup trucks—while simultaneously expanding and enhancing its commercial energy business venture announced earlier this year.
The revenue miss recorded during the third quarter was primarily driven by underperformance across each of the automaker’s core operating segments. Ford structures its sprawling business into three distinct pillars: the traditional internal combustion engine operations under Ford Blue, the commercial fleet and services division known as Ford Pro, and the dedicated electric vehicle unit designated as Model e. According to StreetAccount, all three segments generated results that fell short of aggressive Wall Street expectations.
Nevertheless, as part of its updated guidance architecture, Ford adjusted specific segment expectations. The company now projects that pre-tax earnings for its Ford Blue division will reach $5.5 billion, positioning it squarely at the high end of its previous guidance range. Additionally, the automaker anticipates generating an EBIT of roughly $7 billion for the full year within the Ford Pro commercial segment. Conversely, the company’s dedicated electric vehicle arm, Ford Model e, is projected to record full-year operational losses of approximately $4 billion, reflecting the ongoing margin pressures and high capital expenditure demands characteristic of the broader EV transition. Meanwhile, the company’s captive financial arm, Ford Credit, is expected to deliver a robust performance, contributing an estimated $2.8 billion in EBIT for the 2026 fiscal year.
Total overall revenue for the quarter—which comprehensively includes the performance of the financial credit segment—declined by roughly 2% compared with the same three-month period last year, settling at $49.5 billion. Net income also experienced a downward adjustment, dropping by $400 million year-over-year to land at $2 billion. In contrast, adjusted earnings before interest and taxes managed a slight year-over-year increase, coming in at $2.7 billion.
By comparison, Ford’s financial performance in the third quarter of the prior year included $47.19 billion in traditional automotive revenue, a net income of $2.4 billion, and an adjusted earnings per share of 45 cents. As Ford charts its strategic course through the remainder of the decade, executive leadership remains focused on executing structural cost reductions, stabilizing its supply chain backbone, and managing the delicate balance between legacy internal combustion profitability and future-facing technological investments.
