Ford Motor(US:F)2025-10-23 23:12Financial Performance - Total revenues for Q3 2025 reached $50,534 million, a 9.0% increase from $46,196 million in Q3 2024[8] - Net income for Q3 2025 was $2,448 million, compared to $896 million in Q3 2024, representing a 172.3% increase[8] - Comprehensive income attributable to Ford Motor Company for Q3 2025 was $2,816 million, compared to $1,260 million in Q3 2024, a 123.8% increase[10] - Basic earnings per share for Q3 2025 was $0.61, up from $0.22 in Q3 2024, reflecting a 177.3% increase[8] - Net income for the third quarter of 2024 was $2,447 million, compared to $1,332 million in the same quarter of 2023, representing an increase of 83.8%[17] - Total revenues for the third quarter of 2024 reached $46,196 million, up from $43,069 million in the third quarter of 2023, indicating a growth of 4.9%[32] - Total revenues for the first nine months of 2024 were $136,781 million, compared to $127,770 million in the first nine months of 2023, reflecting an increase of 7.9%[32] - The company reported a net income of $471 million for the first nine months of 2025, compared to $1,831 million in the same period of 2024, a decrease of 74.2%[32] Cash and Liquidity - Cash and cash equivalents increased to $26,788 million as of September 30, 2025, up from $22,935 million at the end of 2024[12] - Total cash and cash equivalents as of September 30, 2025, amounted to $26.788 billion, up from $22.935 billion as of December 31, 2024[46] - The total cash, cash equivalents, and restricted cash rose from $23,190 million at the end of 2024 to $27,084 million by September 30, 2025, marking an increase of approximately 16.3%[49] - Company cash, excluding Ford Credit, increased from $28.5 billion on December 31, 2024, to $32.9 billion on September 30, 2025[205] - Total liquidity, excluding Ford Credit, rose from $46.7 billion at the end of 2024 to $54.0 billion by September 30, 2025[205] Assets and Liabilities - Total assets grew to $300,990 million as of September 30, 2025, compared to $285,196 million at the end of 2024, an increase of 5.5%[12] - Total liabilities as of September 30, 2025, were $253,573 million, up from $240,338 million at the end of 2024, an increase of 5.5%[12] - Total finance receivables, net decreased from $111,636 million on December 31, 2024, to $108,361 million on September 30, 2025, a decline of about 2.0%[54] - The total recorded investment in finance receivables was $112,500 million as of December 31, 2024, and $109,258 million as of September 30, 2025, showing a reduction of about 2.0%[54] - The total past due consumer receivables at September 30, 2025, amounted to $1,084 million, representing 1.3% of the total consumer receivables[60] Segment Performance - Ford Blue reported external revenues of $26,238 million for Q3 2024, while Ford Model e generated $1,175 million, and Ford Pro achieved $15,655 million[144] - Segment EBIT for Ford Blue was $1,624 million, while Ford Model e reported a loss of $1,231 million, and Ford Pro achieved $1,813 million[144] - In Q3 2025, Ford's external revenues increased to $50,534 million, with Ford Blue at $28,018 million and Ford Model e at $1,783 million[146] - Segment EBIT for Ford in Q3 2025 was $2,746 million, indicating an improvement compared to the previous year[146] - Ford Model e segment reported a loss of $1,410 million in Q3 2025, a deterioration of $179 million from the previous year, despite a revenue increase of $608 million[181][183] Debt and Financing - Total debt excluding Ford Credit was $20.654 billion as of December 31, 2024, and increased to $21.775 billion by September 30, 2025[80] - Short-term debt payable within one year increased from $1.756 billion at December 31, 2024, to $3.918 billion at September 30, 2025[80] - The fair value of Ford Credit debt was $140.046 billion as of September 30, 2025, compared to $142.583 billion at December 31, 2024[82] - The company recorded costs of $1.1 billion in the first nine months of 2024 and $453 million in the same period of 2025 related to employee separation actions and restructuring initiatives[99] Future Outlook and Strategic Initiatives - Ford and SK On established a joint venture, BlueOval SK, LLC, to build electric vehicle battery plants with a loan agreement of up to $9.6 billion from the U.S. Department of Energy[107] - The company plans to cease production of the Focus at the Saarlouis Body and Assembly plant in Germany by the fourth quarter of 2025, repurposing the facility into a technical center[96] - Ford anticipates lower production in Q4 2025 due to a fire at a major aluminum supplier, which may impact Ford Credit receivables[151] - The company has observed lower-than-anticipated EV adoption rates, prompting potential adjustments in investments and production strategies[158] Tax and Regulatory Matters - The effective tax rate for Q3 2025 was negative 34.7%, influenced by a net benefit of $1.4 billion from the release of a valuation allowance[42] - Adjusted effective tax rates, excluding special items, were 19.6% for Q3 2025 and 19.8% for the first nine months[200] - The company expects to incur total charges in 2025 ranging between $500 million and $750 million primarily due to employee separations[99] Other Financial Metrics - The company adjusted free cash flow for Q3 2025 was $4.3 billion, an increase of $1.1 billion from the previous year[170] - The adjusted ROIC for the trailing four quarters was 11.4%, a decrease of 1.3 percentage points from the previous year[170] - The loss-to-receivables ratio for the third quarter 2025 was 62 basis points, up from 57 basis points a year ago, indicating increased loss severity and higher repossessions[192]