Core Insights - Sentiment towards Ford's Model e division has fluctuated significantly, culminating in a record sales month in 2025 due to the $7,500 EV tax credit expiring in September [1] Financial Performance - Ford's Model e division incurred a loss of $1.4 billion in Q3, contributing to a total loss of $3.6 billion for the year, primarily from first-generation EV products [2][3] - The company initially projected a loss of $5 billion for Model e in 2023, with actual losses exceeding expectations [3][7] Strategic Shifts - CEO Jim Farley aims to make Model e profitable by 2029, drawing inspiration from BYD's cost structure [4][5] - Ford is transitioning its EV strategy to focus on lower-priced models to enhance competitiveness [6][8] Market Context - EV sales in the U.S. reached a peak of 12% market share in the first three quarters of the year but dropped to 5% in Q4 [3] - Global EV sales figures indicate that China leads with 6.4 million units sold, followed by Europe with 2.2 million, and the U.S. with 1.2 million [10]

Core Viewpoint - Ford Motor Company presents a compelling long-term investment opportunity primarily due to its attractive dividend yield of approximately 4.2%, which appeals to income-focused investors [3][10]. Group 1: Investment Appeal - The automotive industry is characterized by intense competition, low margins, and high capital requirements, making it less attractive for many investors seeking market-beating returns [2]. - Ford's total return, which includes dividends, has been significantly higher than its stock price appreciation alone over the past five years, highlighting the importance of dividends in overall investment returns [4][6]. - The company aims to distribute 40% to 50% of its annual free cash flow to shareholders through dividends, and it has a history of issuing supplemental dividends when cash flow surges [6]. Group 2: Financial Health and Future Prospects - Ford has a robust balance sheet with substantial cash and liquidity, positioning it well for future growth, particularly as it seeks to enhance the profitability of its electric vehicle segment [7]. - The Model e business unit, responsible for electric vehicles, faced a loss exceeding $5 billion in 2024, but Ford is actively working on cost reductions and efficiency improvements, which could lead to better financial performance in the coming years [9]. - Achieving break-even in the electric vehicle sector could free up capital for potential dividend increases, further enhancing the attractiveness of Ford's stock [9]. Group 3: Shareholder Alignment - The Ford family retains significant special shares that provide voting rights and dividends, ensuring that their interests are aligned with those of other shareholders, particularly regarding dividend income [10].

Core Viewpoint - Ford's stock has increased by 31% this year as the company shifts its focus towards efficient growth despite external challenges such as tariff uncertainties and changes in federal support for electric vehicles [1][2]. Financial Performance - Ford's current stock price is $13.28, with a market capitalization of $53 billion [4]. - The stock has a 52-week range of $8.44 to $13.97, and the company has a gross margin of 7.58% and a dividend yield of 4.52% [5]. Tariff Impact - The U.S. auto tariff policy has seen significant changes, including a 25% tariff on imported passenger vehicles and light trucks, which has raised manufacturing costs [6][7]. - In Q3, Ford's net earnings before interest and taxes (EBIT) related to tariffs was approximately $700 million, influenced by preferential tariff treatment [8]. - Recent tariff policy changes have been favorable for Ford, allowing it to offset tariffs on imported auto parts due to its large U.S. manufacturing volume [9]. Strategic Shift - Ford is reducing its costly electric vehicle investments and focusing on hybrid vehicles, commercial vehicles, and software solutions [2][10]. - The Model e segment has incurred losses of $3.6 billion over nine months, prompting a strategy adjustment towards cost efficiency and aligning supply with customer demand [10]. - The company plans to launch its Universal EV Platform (UEV) in 2027, targeting affordable vehicles starting at around $30,000 [11]. Commercial Vehicle Expansion - Ford is expanding its commercial vehicle lineup, which has seen growth in electric vehicle sales, particularly with the E-Transit Custom and E-Transit Courier in Europe [13]. - The adoption of commercial vehicles is supported by integrated software and services that enhance fleet management [13]. Competitive Landscape - The automotive industry is highly competitive, with Ford facing competition from General Motors, Toyota, and electric vehicle manufacturers like Tesla and Rivian [14]. - Despite a solid dividend yield of 4.6%, Ford's total returns have been modest, averaging 4.3% annually over the past decade [15]. - The company may benefit from favorable tariff conditions due to its U.S.-based manufacturing, but the competitive landscape suggests that better growth opportunities may exist elsewhere [16].

Core Insights - Ford's shares have surged nearly 7% following a strong earnings report, with record revenue and net income growth, despite challenges in its electric vehicle division [1][4][5] Financial Performance - Ford reported earnings of 45 cents per share and record revenue of $50.5 billion, reflecting a 9.3% year-over-year increase, surpassing analyst expectations of 38 cents per share [4] - The company's net income reached $2.4 billion, more than double the $900 million reported in the same quarter last year [4] - Ford's cash balance stands at $32.7 billion, which increases to $37.9 billion when including longer-term investments [5] Electric Vehicle Division - Ford Model e, the electric vehicle division, experienced its best sales month ever, but incurred a loss of $1.4 billion in the third quarter due to high spending on new products and increased competition [2][3] - The company initially projected a $5 billion loss for Model e for the year, but the sentiment around EV adoption has shifted under the new presidential administration [8] Market Trends - In 2023, Ford sold 1.99 million vehicles, a 7.1% increase from the previous year, while 2024 sales are projected to reach 2.08 million vehicles, a 4.2% increase [7] - Electric vehicles are expected to exceed a 12% market share in the U.S. for the first time, following a 2.6% year-over-year increase [8] Analyst Insights - A veteran analyst raised Ford's price target from $12 to $16 per share, citing the company's strong balance sheet and financial performance [5] - Despite a $1 billion tariff headwind, which is half of previous projections, Ford has lowered its full-year adjusted EBIT expectation to between $6 billion and $6.5 billion [6]

Core Insights - Ford reported third-quarter 2025 adjusted earnings per share of 45 cents, exceeding the Zacks Consensus Estimate of 38 cents but down from 49 cents in the same quarter last year. Consolidated revenues reached $50.5 billion, a 9.3% year-over-year increase. Total automotive revenues were $47.2 billion, surpassing the Zacks Consensus Estimate of $42.7 billion and up from $43 billion a year ago [1]. Segmental Performance - In the Ford Blue segment, total wholesale volume increased by 2% year over year to 733,000 units, exceeding expectations of 630,000 units. Revenues rose 7% year over year to $28 billion, surpassing the estimate of $23.5 billion. Earnings before interest and taxes (EBIT) were $1.54 billion, above the projection of $925.7 million, with an EBIT margin of 5.5%, down 0.7 percentage points from the same quarter in 2024 [3]. - The Ford Model e segment saw total wholesale volume rise 57% year over year to 50,000 units, though it fell short of the estimate of 57,000. Revenues jumped 52% year over year to $1.8 billion but missed the estimate of $2.6 billion. The segment reported a loss before interest and taxes of $1.4 billion, compared to an estimated loss of $1.58 billion [4]. - In the Ford Pro segment, total wholesale volume increased by 9% year over year to 373,000 units, below the expectation of 401,000. Revenues rose 11% year over year to $17.4 billion, slightly missing the expectation of $17.6 billion. EBIT was $1.98 billion, slightly below the projection of $2 billion, with an EBIT margin of 11.4% [5]. Financial Position - Ford reported adjusted free cash flow of $4.3 billion for the quarter, with cash and cash equivalents totaling $26.8 billion as of September 30, 2025. Long-term debt, excluding Ford Credit, amounted to $17.8 billion on the same date [7]. 2025 Outlook - Ford anticipates full-year 2025 adjusted EBIT in the range of $6-$6.5 billion, down from $10.2 billion in 2024 and the previous forecast of $6.5-$7.5 billion due to the impact of the Novelis plant fire. Adjusted free cash flow is expected to be between $2-$3 billion, down from prior guidance of $3.5-$4.5 billion and $6.7 billion recorded in 2024. Capital expenditures are projected to be around $9 billion [8].

Core Insights - Ford Motor Co. reported third-quarter earnings of 45 cents per share, surpassing analyst estimates of 36 cents [2] - Quarterly revenue reached $47.18 billion, exceeding the Street estimate of $43.07 billion and up from $43.06 billion in the same period last year [2] Business Segment Highlights - Ford Pro generated $2 billion in EBIT on $17.4 billion in revenue, with paid software subscriptions increasing by 8% sequentially to 818,000 subscribers [6] - Ford Model e reported a third-quarter EBIT loss of $1.4 billion, driven by new products in Europe that contributed to revenue and volume growth [6] - Ford Blue achieved $1.5 billion in EBIT, with revenue growth outpacing wholesale unit growth [6] - Ford Credit reported third-quarter earnings before taxes of $631 million, marking a 16% increase compared to the previous year [6] Management Commentary - CEO Jim Farley emphasized the strong performance with over $50 billion in revenue, attributing it to the quality of products and services, as well as a disciplined focus on cost [4] - Farley stated that the company is becoming stronger and more agile as it approaches 2026, with a commitment to strategic execution in propulsion, partnerships, and technology [4]

Core Insights - Ford Motor Company is expected to report quarterly earnings of $0.38 per share, reflecting a decline of 22.5% year over year, with revenues forecasted at $42.26 billion, a decrease of 1.9% compared to the previous year [1] Revenue Estimates - The consensus estimate for 'Revenues- Company excluding Ford Credit' is $41.30 billion, indicating a year-over-year change of -4.1% [4] - Analysts project 'Revenues- Ford Credit' to be $3.26 billion, suggesting a year-over-year increase of +4.2% [4] - 'Revenues- External Revenues- Ford Blue' is estimated at $24.12 billion, reflecting a decline of -8.1% from the prior-year quarter [4] - 'Revenues- Ford Pro' is expected to reach $16.37 billion, indicating a year-over-year increase of +4.5% [5] - 'Revenues- External Revenues- Ford Model e' is projected at $2.36 billion, showing a significant increase of +101% from the previous year [5] Wholesale Units - 'Wholesale Units - Ford Blue' is estimated to be 612.82 thousand, down from 721.00 thousand year-over-year [5] - 'Wholesale Units - Ford Pro' is expected to reach 361.30 thousand, compared to 342.00 thousand in the same quarter last year [6] - 'Wholesale Units - Ford Model e' is forecasted at 56.36 thousand, up from 32.00 thousand in the same quarter of the previous year [6] Adjusted EBIT Estimates - 'Adjusted EBIT- Ford Credit' is projected to be $595.47 million, compared to $544.00 million year-over-year [6] - 'Adjusted EBIT- Ford Blue' is expected to reach $1.08 billion, down from $1.63 billion in the previous year [7] - 'Adjusted EBIT- Ford Pro' is forecasted at $2.00 billion, an increase from $1.81 billion year-over-year [7] Stock Performance - Ford Motor shares have returned +2.6% over the past month, outperforming the Zacks S&P 500 composite, which saw a +1.1% change [7]

Group 1 - The investment case for Ford is complex, balancing a low valuation and historical strength against challenges in a dynamic automotive industry [1] - Ford's segment performance in the first half of 2026 shows a strong commercial business in Ford Pro, while the Ford Model e segment is struggling with significant losses of $5.1 billion [2][3] - Ford Pro generated $34 billion in revenue with a 10.7% EBIT margin, while Ford Blue had $46.8 billion in revenue with a 1.6% EBIT margin, contrasting with Ford Model e's $3.6 billion revenue and a -60.5% EBIT margin [3] Group 2 - There is an argument for separating Ford Pro from the rest of the company to unlock value, as Ford transitions from internal combustion engines (ICE) to electric vehicles (EVs) [4] - Ford stock trades at 10.3 times estimated earnings for 2025, primarily driven by the Pro business, which has growth potential through recurring revenue from services [5] - CEO Jim Farley emphasizes the importance of keeping Ford Pro integrated, highlighting the risks of investing in Ford amid the need for significant EV investment [6] Group 3 - Ford has committed to a $5 billion investment in EV development, including a new $30,000 pickup truck planned for 2027 and a Universal EV Production System [7] - The crossover activities among Ford's segments indicate a strategic approach to leverage strengths across the business [9][10] - The growth in the auto market is shifting towards EVs, making it imperative for Ford to remain relevant and competitive against rivals [10][11] Group 4 - Ford's Pro segment is crucial for cash flow to support EV investments, and its dominant position in commercial vans and light trucks is at risk from competitors [11] - The investment in Ford is not merely a bet on hidden value but rather a commitment to becoming a significant player in the EV market [12]

Core Insights - Ford Motor Company (F) shares have increased by 23.4% over the past six months, while the Zacks Automotive – Domestic industry has grown by 38.4% [1] - In the first eight months of 2025, Ford's sales reached 1.49 million units, reflecting a year-over-year increase of 6.6%, driven by a 14% rise in electrified vehicle sales [2] - Ford's Model e segment saw revenues more than double to $2.4 billion in Q2, with significant margin improvements attributed to product mix and new model launches [6][7] Sales and Performance - Ford's vehicle lineup, including F-series trucks and various SUV models, is performing well, supported by a strong hybrid strategy [5] - Ford Pro, the commercial fleet solutions unit, has diversified its revenue streams, contributing to 17% of its EBIT, moving closer to a 20% target for next year [8] Challenges and Concerns - Ford anticipates a net tariff impact of $2 billion for 2025, up from a previous estimate of $1.5 billion, with a gross tariff cost forecast raised to $3 billion [10] - The company has issued over 100 recalls in 2025, including a recent recall of 1.45 million vehicles, which is expected to increase warranty and recall expenses, putting pressure on margins [11] Valuation and Estimates - Ford appears undervalued with a forward price/sales ratio of 0.29, significantly lower than the industry average of 2.66 [12] - The Zacks Consensus Estimate for Ford's EPS has seen slight upward adjustments for 2025 and 2026, indicating a positive outlook [13]

Core Insights - Ford Motor Company reported second-quarter 2025 adjusted earnings per share of 37 cents, exceeding the Zacks Consensus Estimate of 34 cents but down from 47 cents in the previous year [2] - Consolidated revenues for the second quarter reached $50.18 billion, a 5% increase year over year, with total automotive revenues at $46.94 billion, surpassing estimates [2] Segment Performance - Ford Blue segment's wholesale volume decreased by 6% year over year to 696,000 units, with revenues declining 3% to $25.8 billion, although it exceeded expectations [3] - Ford Model e segment saw a significant increase in wholesale volume, rising 218% to 60,000 units, with revenues jumping 105% to $2.4 billion, despite a loss before interest and taxes of $1.33 billion [4] - Ford Pro segment's wholesale volume increased by 15% to 429,000 units, with revenues rising 11% to $18.8 billion, and earnings before interest and taxes at $2.32 billion [5] - Ford Credit unit reported revenues of $3.24 billion, an 8.3% increase year over year, with pretax earnings up 88% to approximately $645 million [6] Financial Position - Ford reported adjusted free cash flow of $2.83 billion for the quarter, with cash and cash equivalents totaling $23 billion as of June 30, 2025, and long-term debt at $16.74 billion [7] 2025 Outlook - The company expects full-year 2025 adjusted EBIT to be in the range of $6.5-$7.5 billion, down from $10.2 billion in 2024, factoring in a net tariff-related headwind of nearly $2 billion [8] - Adjusted free cash flow is anticipated to be between $3.5-$4.5 billion, down from $6.7 billion in 2024, with capital expenditures expected around $9 billion [8] Estimate Trends - Estimates for Ford have trended downward over the past month, indicating a cautious outlook [9][12] - The stock currently holds a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the coming months [12] Industry Performance - Ford is part of the Zacks Automotive - Domestic industry, where General Motors reported a revenue decline of 1.8% year over year, with an EPS drop from $3.06 to $2.53 [13] - General Motors is expected to post earnings of $2.32 per share for the current quarter, reflecting a year-over-year change of -21.6% [14]