Ford Motor said Wednesday that it expects 2027 earnings to be roughly in line with its anticipated results for 2026. The Detroit automaker made the forecast while reporting mixed third-quarter results.
Ford beat Wall Street's third-quarter earnings expectations but slightly missed revenue estimates, according to LSEG. Ford's overall revenue, which includes its credit segment, fell about 2% from a year earlier to $49.5 billion. Net income dropped $400 million to $2 billion. Adjusted earnings before interest and taxes rose slightly to $2.7 billion.
Ford reported third-quarter adjusted free cash flow of $4.7 billion, roughly $2 billion higher than analysts expected, according to StreetAccount. The company's adjusted EBIT margin was 5.4% in the quarter.
Ford narrowed its 2026 guidance for adjusted EBIT to between $10.5 billion and $11 billion, compared with a previous outlook of $10 billion to $11 billion. It kept its adjusted free cash flow guidance at $6 billion to $7 billion.
CFO Sherry House said the 2027 outlook reflects several offsetting factors. She said a $1.3 billion tariff refund received in the first quarter of this year was largely offset by added costs from alternative aluminum sourcing, which Ford does not expect next year. She also cited production issues this year and rising commodity costs. House said Ford's F-Series Super Duty production in Canada in 2027 will make up for lost output expected at its F-150 plants as they retool for new models.
CEO Jim Farley called 2027 a "foundational year" on the way to Ford's previously announced target of an 8% adjusted EBIT margin by 2029. Ford is rolling out several new or redesigned models, including its next-generation EV and Canada-produced pickups, and is expanding its energy business.