F 2026 Q3

Ford raised the low end of its full-year adjusted EBIT guidance, now expecting $10.5B-$11B versus the prior range, reflecting stronger-than-expected quarterly execution.

“We're raising the low end of our previous full-year adjusted EBIT guidance and now expect to earn between $10.5 billion and $11 billion.”— James Farley, President and CEO

Management guided 2027 profitability to be roughly flat versus 2026 rather than continuing to grow, as heavier investment in UEV, Ford Energy and next-gen vehicles offsets operating improvements.

“we're targeting profitability next year to be roughly in line with this year, with an even stronger automotive business that enables us to invest in our future”— James Farley, President and CEO

Tata Motors announced its acquisition of Iveco Group to enhance its global commercial vehicle operations. The $4.32 billion deal aims to improve growth and diversification rather than consolidation.… Tata Motors-Iveco will focus on building a global CV business: N Chandrasekaran — economictimes.indiatimes.com · 03 November 2026

Ford raised its full-year 2026 U.S. industry pricing assumption to about 100 basis points higher year-over-year, up 0.5 point from its prior assumption, citing a strong pricing environment.

“We now expect full-year U.S. industry pricing to be about 100 basis points higher year-over-year, which is 0.5 point higher than our previous assumption.”— Sherry House, CFO

Ford Energy's contracted and late-stage-negotiation capacity for 2028 now exceeds 80%, with full commitment of that capacity now expected by Q1 2027, ahead of prior pace.

“Executed contracts and late-stage negotiations together already account for more than 80% of Ford Energy's 2028 capacity.”— James Farley, President and CEO

Negotiations for 2029 and 2030 Ford Energy capacity are advancing with customers engaging well ahead of the company's initial expectations for that timeline.

“Negotiations for '29 and '30 capacity are already advancing, with customers engaged way ahead of our initial expectations.”— James Farley, President and CEO

Ranger Super Duty became the number-one heavy-duty medium-sized truck in Australia in its first year on sale, opening a newly profitable market opportunity.

“it's already number one in Australia's heavy-duty medium-sized truck market in its first year, opening a very profitable opportunity for us.”— James Farley, President and CEO

Ford's exports from China rose roughly 60%, which management called a significant improvement in that strategy's contribution to international growth.

“exports are up, I don't know, like 60%. It's a really big improvement.”— James Farley, President and CEO

Software services and parts businesses achieved record quarterly revenue at highly accretive margins, now contributing about 10% of total revenue, a new high for these auto-adjacent businesses.

“Both software services and parts businesses achieved record revenue in the third quarter at highly accretive margins.”— Sherry House, CFO

Ford will launch a new affordable international midsize pickup next year with base material costs 20% lower than today's Ranger, a new low-cost product designed to compete directly with Chinese entrants.

“We expect the base material costs for this truck to be 20% lower than today's Ranger.”— James Farley, President and CEO

Management said the Fathom EV's revenue opportunity is strengthening, driven by rising EV prices pushing buyers toward lower-cost options and growing used-EV demand, improving the outlook for the upcoming launch.

“the revenue picture, which actually seems to be strengthening”— James Farley, President and CEO

GM’s $220 million privacy settlement and Ford’s new pledge not to sell driving-behavior data to brokers have exposed a potential blind spot. GM’s $220M Privacy Settlement Shows Manufacturing Data Costs — pymnts.com · 04 November 2026

Ford Pro launched a new Ford Pro Leasing offering in Q3, a new commercial leasing capability expected to help grow its digital fleet management portfolio past 100,000 units by year-end.

“Credit launched Ford Pro Leasing in the third quarter. It's a big deal for Pro.”— James Farley, President and CEO

Full-year 2026 commodity cost headwind guidance was raised to approximately $2.5 billion, an increase of about $500 million versus the prior assumption, due to rising input cost pressure.

“commodity headwinds approaching $2.5 billion year-over-year, an increase of about $500 million as we continue to see increasing pressure from input costs”— Sherry House, CFO

For 2027, Ford newly guided to a roughly $2 billion year-over-year headwind from commodities, memory, and logistics costs, a new external cost pressure to be offset by operating improvements.

“We currently expect commodities, memory and logistics costs to represent a year-over-year headwind of about $2 billion at Ford.”— James Farley, President and CEO

Model e EBIT loss improved 25% year-over-year, reflecting capital efficiency and structural cost reduction as Gen 1 volumes are rightsized.

“For Model e, we improved EBIT by 25% year-over-year in the quarter.”— Sherry House, CFO

Ford Blue EBIT declined 10% year-over-year due to lower volume from product discontinuations, Middle East conflict impacts, and higher commodity costs.

“Our performance primarily reflects lower volume, driven by product discontinuations and the impact of the Middle East conflict within the region, and higher commodity costs.”— Sherry House, CFO

Ford Pro EBIT fell 16% year-over-year, driven by higher commodity costs and temporary costs tied to the Oakville Super Duty launch.

“Pro EBIT was $1.7 billion, down 16%, primarily due to higher commodities and temporary costs associated with the Oakville launch.”— Sherry House, CFO

Ford guided to roughly 40% year-over-year improvement in Gen 1 Model e EBIT in 2026 as the company balances production and pricing with demand.

“We are on track to improve Gen 1 EBIT by approximately 40% year-over-year in 2026 as we balance production and pricing with natural demand.”— Sherry House, CFO

Ford now expects higher Model e expenses in 2027 as UEV and Ford Energy plants ramp up, with profitability progress described as non-linear ahead of a 2028 step-up.

“we're now expecting higher expenses in 2027 as the plants come into focus”— Sherry House, CFO

Novelis's operational recovery is now largely complete, with about $1 billion in temporary costs incurred year-to-date, still tracking to a $1 billion net tailwind for 2026.

“At Novelis, operationally, the recovery is largely behind us.”— Sherry House, CFO

Chinese competition is intensifying most notably in Latin America and Southeast Asia where Ford's Ranger operates, prompting Ford to launch a new affordable pickup next year to compete at Chinese price points.

“Where we see the most intense competition is Latin America and Southeast Asia, where we have a large Ranger business.”— James Farley, President and CEO

Europe's commercial vehicle segment faces growing negative profit pressure from Chinese competition, EU EV mandates, and overcapacity, which Ford plans to address with a new Pro EV lineup next year.

“There's a lot of negative profit pressure, but we have a really good solution coming next year that we're really excited about.”— James Farley, President and CEO

Ford's Geely partnership is revealing concrete cost and speed advantages versus Ford's own development process, which the company is now institutionalizing into its product development system.

“we're learning that they're a few months faster than us”— Kumar Galhotra, Chief Operating Officer

Industry-wide EV prices have risen about 10%, pricing many new EVs out of the affordable segment and pushing buyers toward used vehicles, a shift Ford says plays to Fathom's low-price positioning.

“We've actually seen EV prices go up about 10%, which has priced a lot of new vehicles out of the affordable market.”— Andrew Frick, President of Ford Blue and Model e

Ford detailed the phasing of its roughly $2 billion Ford Energy investment, with about one-third spent in 2026 and two-thirds planned for 2027, clarifying prior investment cadence.

“we're going to spend about one-third of that this year and about two-thirds next year”— Sherry House, CFO

Higher fuel prices are raising freight and energy costs, but management explicitly noted this has not yet dented customer demand for trucks and fleet vehicles, a more resilient read than typical fuel-price caveats.

“we are not seeing them impact customer demand for trucks and fleet vehicles at this point”— Sherry House, CFO

Ford Credit's EBT rose $172 million, benefiting from a newly supportive used-vehicle pricing environment alongside favorable derivatives and financing margins.

Per Sherry House, CFO