Ford's Q3 2024 Earnings Report: EV Losses, Overall Revenue Growth

Zhinen Automobile In the third quarter of 2024, Ford’s overall quarterly report remained solid. ● Quarterly revenue reached $46 billion, up 5% year-on-year—marking ten consecutive quarters of year-on-year growth, reflecting Ford’s increasingly enhanced competitiveness in the market. ● Adjusted EBIT totaled $2.6 billion, an increase of $352 million year-on-year, driven by higher sales volumes and product portfolio optimization—though partially offset by pricing pressure in the electric vehicle segment and adverse currency exchange effects (EVs continue to drag down performance). ● Net income stood at $900 million, down $300 million year-on-year, primarily due to $1 billion in expenses related to the electric vehicle business. If comparing Ford with General Motors, Ford’s EV losses are significantly larger—$3.7 billion in the first nine months of 2024 alone—representing a core divergence between the two companies. Part 1 Interpretation of Financial Highlights Ford Motor’s Q3 revenue amounted to $46.2 billion, with year-on-year revenue growth of 5%; automotive revenue was $43.07 billion. The quarter’s performance was primarily driven by its “Pro” commercial and fleet business and the traditional “Ford Blue” business. Revenue growth was propelled by new model launches—including the Ford Pro Super Duty trucks and Transit vans, as well as the all-new Ford Blue Explorer and Lincoln Aviator—which met diverse consumer needs and strengthened global market performance, especially driving overall growth in the North American market. Reasons for net income decline: EV-related expenses weighed on net income. Ford increased R&D and production investments, leading to short-term cost increases; pricing pressure in the EV segment, raw material price volatility, and rising supply chain costs all impacted profitability to varying degrees. ● Ford Pro: Q3 revenue for Ford Pro reached $15.7 billion, up 13% year-on-year; EBIT totaled $1.8 billion, with a margin of 11.6%. Demand remained strong for Super Duty trucks and Transit vans; Pro Intelligence software subscriptions grew 30%, reaching 630,000 users. Ford Pro’s mobile service vehicles also saw significant growth, with repair orders increasing by 70%. ● Ford Blue: Q3 revenue for Ford Blue was $26.2 billion, up 3% year-on-year. In the North American market, sales of new trucks and SUVs rose 8%, lifting Ford’s U.S. market share to 12.6%. However, EBIT declined year-on-year to $1.6 billion, mainly due to adverse currency exchange effects and rising manufacturing costs. Ford Blue faces dual pressures: intensifying competition in the ICE vehicle market and the ongoing transition toward electrification.

Ford: China Contributed Over $600 Million in Profit

By Tu Yanping Edited by Huang Dalu Designed by Shi Chao Sources: Detroit Free Press, Electrek, Reuters, etc. Following General Motors’ third-quarter earnings—which exceeded Wall Street expectations—Ford Motor also impressed investors. Ford Motor’s Q3 revenue totaled $46 billion, up 5% year-on-year—the company’s tenth consecutive quarter of year-on-year revenue growth. However, its Q3 net income fell 25% to $900 million; the company attributed this decline to $1 billion in EV-related expenses. The automaker—headquartered in Dearborn, Michigan—reported adjusted EBIT of $2.6 billion for July–September, up 18% from $2.2 billion a year earlier. Ford currently expects full-year adjusted EBIT of $10 billion and adjusted free cash flow between $7.5 billion and $8.5 billion. John Lawler, Ford’s Chief Financial Officer, described the company’s Q3 performance as “solid” during a media call—but noted that the automaker is “navigating” “unprecedented transformation” across the industry. Additionally, Ford’s stock has fallen approximately 6% year-to-date. Electric Vehicles Continue to Post Losses Ford’s U.S. retail vehicle sales rose 3% in Q3, while overall vehicle sales increased 1% year-on-year. Through the first nine months of 2024, total vehicle sales rose 2.7% year-on-year. Ford’s commercial and software business, Ford Pro, remains the primary growth engine—delivering 9% and 13% growth in volume and revenue, respectively. The division generated $1.8 billion in operating profit, with an EBIT margin of 11.6%. Ford Mustang Mach-E ▼ (Image source: Ford) Nonetheless, Ford’s EV business continues to face pressure. Ford Model e—the unit housing EV operations—recorded a $1.2 billion loss in Q3. Ford’s EV sales rose 12%, with 23,509 units sold in the quarter. Despite growth, Ford’s U.S. EV sales trailed those of General Motors and Hyundai Motor Group (including Kia and Genesis). Ford stated, however, that lower material and battery costs have yielded nearly $1 billion in cost improvements year-to-date. These gains proved insufficient to overcome “industry-wide pricing pressure,” as Ford’s EV business posted $3.7 billion in losses through the first nine months of 2024. “As our industry undergoes a complete transformation, we’re well-positioned with Ford+,” said Jim Farley, Ford’s CEO. Farley noted the company has taken “decisive action” to build advantages in critical areas such as software and next-generation EVs. Ford expects its EV business to post approximately $5 billion in losses for 2024. In August, Ford announced it would revise its EV strategy to ensure new EV models achieve profitability within one year of launch. Lawler stated that EV pricing pressure will remain intense at least through 2026, as automakers flood the market with numerous new models.

Ford Q3 Core Profit Rises Despite Rising Commodity Costs

14 hours ago

Ford Motor reported a slight increase in third-quarter core profit to $2.7 billion, raising its annual commodity cost estimate to nearly $2.5 billion due to higher prices for copper, steel, and aluminum amid geopolitical tensions.

reuters

2026-10-28

Ford Q3 Core Profit Rises Despite Rising Commodity Costs

Ford Q3 Core Profit Rises Despite Rising Commodity Costs

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