Ford Motor Company (F) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue rose 5% year-over-year to $46.2 billion, marking the 10th consecutive quarter of growth, driven by strong truck, hybrid, and new product sales.

• Adjusted EBIT for Q3 was $2.6 billion (5.5% margin), up $352 million year-over-year, supported by higher volume, favorable mix, and cost improvements despite EV pricing pressures.

• Net income was $892 million (1.9% margin), down $307 million year-over-year, impacted by a $1 billion EV-related charge and restructuring actions.

• International operations turned profitable, with China and exports contributing over $600 million to EBIT.

• Paid software subscriptions exceeded 805,000, up nearly 40% year-over-year, with gross margins above 50%.

Financial highlights

• Q3 adjusted free cash flow was $3.2 billion, up $2.0 billion year-over-year; year-to-date $5.9 billion, with a 74% cash conversion rate.

• Cash and liquidity at quarter-end: nearly $28 billion in cash and $46 billion in liquidity.

• Declared a $0.15/share Q4 dividend; shareholder distributions totaled $2.8 billion year-to-date.

• Ford Pro revenue up 13% to $15.7 billion; EBIT $1.8 billion (11.6% margin).

• Ford Model e posted a $1.2 billion loss, despite $500 million in year-over-year cost improvements.

• Ford Blue revenue up 3% to $26.2 billion; EBIT $1.6 billion (6.2% margin), with North America volume up 8%.

• Ford Credit EBT $544 million, up $186 million year-over-year.

Outlook and guidance

• Full-year 2024 adjusted EBIT expected at about $10 billion; adjusted free cash flow guidance: $7.5–$8.5 billion; CapEx $8–$8.5 billion.

• 2024 U.S. SAAR assumed flat to slightly higher (16–16.5 million units); Europe also flat to slightly higher.

• Ford Pro EBIT forecasted at about $9 billion; Model e to post ~$5 billion loss; Ford Blue EBIT ~$5 billion; Ford Credit EBT ~$1.6 billion.

• Guidance assumes no material change in inflation, logistics, production, or macroeconomic conditions.