Core Insights - Ford is expected to release its third-quarter 2025 results on October 23, with an EPS estimate of 38 cents and automotive revenues of $42.26 billion [1][6] - The EPS estimate reflects a 22.5% decline compared to the same quarter in 2024, while revenue is projected to decline by 2% year-over-year [2] Earnings Estimates - The EPS estimate has increased by one cent over the past 60 days, with a current consensus of $1.17 for full-year EPS, indicating a 36.4% year-over-year contraction [2][3] - For 2025, automotive revenues are estimated at $168.2 billion, suggesting a 2.5% decline year-over-year [3] Sales Performance - Ford sold 545,522 vehicles in the U.S. during Q3 2025, marking an 8.2% increase year-over-year, driven by strong demand for the Mustang Mach-E and F-150 Lightning [6][8] - The Mustang Mach-E achieved record sales of 20,177 units, up 50.7% year-over-year, while the F-150 Lightning sold 10,005 units, up 39.7% year-over-year [8] Revenue Breakdown - Revenue estimates for key segments include $23.5 billion from the Ford Blue unit (down 10% year-over-year), $2.67 billion from the Ford Model E unit (up from $1.17 billion in Q3 2024), and $17.7 billion from the Ford Pro unit (up 13% year-over-year) [10] - Ford Pro Intelligence software subscriptions increased by about 30% year-over-year, reaching 815,000 active subscribers [10] Challenges and Costs - High recall costs and tariffs are expected to pressure Ford's margins, with over 100 recalls issued this year, the most by any automaker [11] - Tariff costs are projected to reach $3 billion in 2025, with $800 million incurred in Q2 alone [17] Market Position and Valuation - Year-to-date, Ford's shares have risen over 17%, outperforming competitors like Tesla and General Motors [12] - Ford is trading at a forward sales multiple of 0.29, significantly below the industry average of 3.33, indicating a relatively cheaper valuation [15] Strategic Outlook - Ford's hybrid strategy is gaining traction, particularly in the Ford Pro segment, with robust demand for Super Duty trucks [16] - The company has ample liquidity of approximately $46 billion, including $28 billion in cash, and an attractive dividend yield of around 5% [16]