Ford Stock Hits 52-Week Highs After Company Beats Q3 Estimates

Ford stock (NYSE: F) is trading sharply higher today and hit its 52-week high after the Detroit auto giant reported better-than-expected earnings for Q3. Here are the key takeaways from the report and analysts’ reaction to the earnings.

Ford Reported Better-Than-Expected Q3 Earnings

Ford delivered a robust top-line performance, with revenue reaching a record $50.5 billion, a 9% increase year-over-year and well above analyst forecasts. The company’s adjusted diluted earnings per share came in at $0.45, surpassing the consensus estimate of $0.36.

The underlying profitability remained resilient. Ford reported $2.6 billion in adjusted earnings before interest and taxes (EBIT), matching the figure from the prior year’s third quarter. This was achieved despite the company absorbing a significant $0.7 billion adverse net tariff-related impact during the quarter. Furthermore, the company generated impressive operating cash flow, reporting $4.3 billion in adjusted free cash flow, an increase of over $1 billion from the year-ago period. Ford also maintained a strong balance sheet, with nearly $33 billion in cash and $54 billion in total liquidity.

GM Also Beat Earnings

Notably, Ford’s Q3 earnings come a day after Detroit rival General Motors reported stellar numbers for the September quarter and raised its 2025 guidance. GM stock rose almost 15% after the earnings release and had its second-best day since it emerged from bankruptcy in 2009.

GM posted $48.6 billion in total revenue, which was nearly flat compared to the same period in the prior year, yet comfortably exceeded market expectations of $45.26 billion. The company’s adjusted pre-tax profits came in at $3.38 billion, which was well ahead of the $2.72 billion that analysts were expecting.

How did F’s Different Business Segments perform in Q3?

Ford’s performance continues to be defined by the results of its three distinct business units under the “Ford+” plan:

• Ford Pro (Commercial): Once again, the commercial segment proved to be the powerhouse, generating a strong $2.0 billion in EBIT on high margins. This success was fueled by sustained demand for commercial vehicles and continued growth in software subscriptions, which are bolstering Ford’s ability to service its commercial customer base.
• Ford Blue (ICE Vehicles): The traditional internal combustion engine (ICE) unit delivered solid profitability, contributing $1.5 billion in EBIT. The segment saw revenue growth that outpaced wholesale volume growth, demonstrating favorable pricing and product mix.
• Ford Model e (Electric Vehicles): The EV unit continues to operate as an investment and scale-up division. It reported an EBIT loss of $1.4 billion, reflecting the high costs associated with launching and scaling new electric vehicles, even as volume showed some growth driven by new products in Europe.

Notably, the EV business of legacy automakers has been struggling, and GM took a $1.6 billion special charge in Q3, primarily related to the strategic realignment of the company’s electric vehicle (EV) production capacity. This charge included approximately $1.2 billion in non-cash impairments and about $400 million in cash supplier cancellation costs, signaling the company’s move to “right-size” its EV assets amid a more tempered pace of electric vehicle adoption than initially projected.

Meanwhile, CEO Mary Barra termed EVs as the company’s North Star in the shareholder letter while adding, “However, with the evolving regulatory framework and the end of federal consumer incentives, it is now clear that near-term EV adoption will be lower than planned.”

Fire at Novelis Plant Impacted Ford’s Profits

Notably, Ford has been negatively impacted by a fire at a Novelis plant, which supplies aluminum to the US automotive industry. The disruption severely impacted the production of Ford’s highest-margin vehicles, including its best-selling F-Series pickups and large SUVs like the Expedition and Lincoln Navigator. The company has warned that this supply interruption will result in a substantial $1.5 billion to $2.0 billion headwind to adjusted EBIT in the fourth quarter of 2025.

As a direct consequence, Ford was compelled to revise its full-year 2025 adjusted EBIT guidance downward to a range of $6.0 billion to $6.5 billion. Management emphasized that, were it not for the Novelis fire, they would have otherwise been on track to raise their guidance, with the underlying business tracking at over $8 billion in adjusted EBIT.

Despite the lowered full-year outlook, Ford’s management stressed that the problem is a near-term production bottleneck, not a fundamental flaw in demand or strategy. The company is already executing a recovery plan, including working with Novelis to restart the plant quickly and securing alternative supplies. Furthermore, Ford announced plans to increase F-Series production in 2026 to recover lost volume.

“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. We have made substantial progress in a short time to minimize the impact in 2025 and recover production in 2026,” said Ford CEO Jim Farley.

Ford Expects a $2 Billion Impact from Tariffs

In the rapidly evolving automotive landscape, Ford is maintaining a strategic focus on expanding its hybrid lineup, securing a dominant share of the hybrid truck market, and continuing its disciplined approach to cost control and quality improvement, an effort that is on track for a net $1 billion cost improvement for the year.

Notably, after the tariff changes announced by the Trump administration, Ford said that it now expects the tariff impact to be $2 billion this year, which is $1 lower than its previous guidance.

Ford Gets Target Price Hikes

Ford’s Q3 earnings were received positively by the markets, and Royal Bank of America, Wells Fargo, and Piper Sandler raised the stock’s target price following the report. The stock was up nearly 10% at the time of writing as markets gave a thumbs up to the company’s financial performance.