- Ford Motor surpassed Wall Street’s third-quarter earnings and revenue expectations.
- Despite the strong quarter, the company significantly lowered its full-year 2025 financial guidance.
- The guidance cut is a direct result of a fire at a key aluminum supplier, disrupting the production of highly profitable trucks and SUVs.
- Ford’s stock (F) fell approximately 4% in extended trading following the mixed news.
A Strong Quarter Overshadowed by Crisis
Ford Motor announced robust third-quarter financial results that beat Wall Street estimates, but the positive news was quickly eclipsed by a significant operational setback. The Detroit automaker has been forced to lower its full-year 2025 guidance due to a fire at the plant of a crucial aluminum supplier, Novelis, which is severely impacting the production of its most profitable vehicles.
The company reported adjusted earnings of 45 cents per share on automotive revenue of $47.19 billion. These figures comfortably exceeded analysts’ expectations of 36 cents per share and $43.08 billion in revenue, respectively. The company’s total quarterly revenue, including its financial arm, reached a record $50.5 billion. However, the market reacted to the forward-looking challenges, sending the stock down about 4% in after-hours trading.
The Financial Impact of the Fire
The fire, which occurred last month at a Novelis plant in New York, has thrown a wrench into Ford’s production schedule for its popular large trucks and SUVs. In response, Ford has revised its 2025 financial outlook.
The company now projects adjusted earnings before interest and taxes (EBIT) to be between $6 billion and $6.5 billion, a notable decrease from the previous range of $6.5 billion to $7.5 billion. Furthermore, adjusted free cash flow is now expected to be in the $2 billion to $3 billion range, down from $3.5 billion to $4.5 billion.
Ford CFO Sherry House underscored the severity of the incident, stating that without the supplier fire, the company was on track to raise its 2025 guidance to over $8 billion in adjusted EBIT.
Navigating Production and Recovery
Ford executives are working to mitigate the damage. The fire is expected to cost the company between $1.5 billion and $2 billion, but strategic actions are being taken to reduce that impact to less than $1 billion by next year.
“We are working intensively with Novelis and others to source aluminum that can be processed in the cold rolling section of the plant that remains operational while also working to restore overall plant production,” Ford CEO Jim Farley said in a statement.
To recover the lost output, Ford announced plans to “significantly increase” its U.S. pickup truck production, which includes adding 1,000 workers to plants in Michigan and Kentucky in 2026. This move is expected to recoup 50,000 units of lost truck production.
Silver Linings and Strategic Progress
Amid the supply chain turmoil, there was some positive financial news. Ford lowered its expected tariff costs for the year by $1 billion, now anticipating a total impact of around $2 billion.
The company also confirmed it remains on track with its “Ford+” turnaround plan, which aims to achieve $1 billion in cost savings this year. “Our performance in the quarter show that the Ford+ plan is delivering consistent improvement,” House noted, emphasizing that the underlying business is growing stronger and more efficient.