Ford disclosed its third quarter financial earnings on Thursday, beating Wall Street expectations by reporting a $50.5 billion revenue, compared to the estimated $43.9 billion.
However, the Detroit automaker revised its 2025 financial outlook, which had been temporarily suspended in May, to account for expected supply chain disruptions.
Ford now expects its results to be affected not only by US tariffs, but also by last month’s fire at Novelis’ aluminum plant in New York.
Full adjusted EBIT estimates for 2025 have decreased from a range of $7–8.5 billion to $6–6.5 billion.
The Novelis fire is expected to create an headwind of $1.5–$2 billion and an adjusted free cash flow headwind of $2–$3 billion.
Ford now estimates that its capital spending will increase to $9 billion, while previously expecting a lower-range of $8 billion.
The company had already included an estimated net tariff impact of approximately $1 billion, alongside a net cost reduction of $1 billion (excluding these external events).
Following the fire at Novelis, which mainly affects the F-150 Lightning due to its switch from steel to aluminum, Ford has announced that it is halting production of the electric version to focus on the more profitable gas and hybrid F-Series trucks.
The company said on Thursday that “F-150 Lightning assembly at the Rouge Electric Vehicle Center will remain paused.”
Earlier this month, Ford announced that it delivered a record 85,789 electric vehicles in the third quarter, as demand jumped ahead of the EV consumer credit deadline on September 30.
In the third quarter, the electric vehicle division, ‘Model e,’ saw its EBIT losses increase compared to the previous quarter.
The EV unit lost $1.4 billion in the third quarter while revenue stood at $1.8 billion.
Between July and September, the EBIT margin of the ‘Model e’ unit was a negative 79%. Over the first nine months of the year, the figures slightly improved to negative 66.7%.
Ford‘s EV division has now posted $3.6 billion in year-to-date EBIT losses, following $800 million in the first quarter and $1.3 billion in the second quarter.
Despite the 25% drop in revenue from the second quarter, it jumped 50% year over year to $1.8 billion.
From January through September, Ford’s ‘Model e’ revenue stood at $5.4 billion.
The automaker announced in August that it will invest “approximately $5 billion” to develop a new EV platform and launch a midsize four-door electric pickup in 2027 with a target starting price of $30,000.
The Detroit automaker stated that its new EV platfrom uses 20% fewer parts, 25% fewer fasteners, 40% fewer workstations, and enables assembly 15% faster than a typical vehicle.
Earlier this month, Jefferies upgraded Ford‘s stock rating from Underperform to a Hold rating, noting the Detroit automaker’s shift in EV strategy for the upcoming months.
Analyst Philippe Houchois said that the automaker “could comment on potential mix benefits starting in Q4 and a shift in EV strategy.”
Jefferies expects Ford “to remain committed to an electrification strategy,” saying that it should benefit from a longer adjustment period.”
As of press time, the company’s stock is trading 3% higher at $12.74 on Friday’s pre-market session, after closing at $12.34 on Thursday.
The stock has surged nearly 25% year to date.
