On October 26, 2023, Ford Motor Co (F, Financial) released its third-quarter earnings report, showcasing a significant improvement in its financial performance. The company's revenue rose by 11% year-over-year to reach $44 billion, and it reported a net income of $1.2 billion, a stark contrast to the net loss of $827 million it experienced in the same period last year. The adjusted EBIT also increased to $2.2 billion.
Financial Performance
Ford's third-quarter U.S. sales gains were seen across its gas, hybrid, and electric vehicle lines. The company's revenue in the quarter was $44 billion, up 11% from third-quarter 2022 on flat vehicle wholesales. The net income of $1.2 billion reversed a year-ago net loss of $827 million. The cash flow from operations was $4.6 billion in the quarter and $12.4 billion through the first nine months of the year. Adjusted free cash flow for the same periods was $1.2 billion and $4.8 billion, respectively.
Company's Balance Sheet
Ford's balance sheet remains strong, with more than $29 billion in cash and $51 billion in liquidity at the end of Q3, providing important financial flexibility. This included a $4 billion contingent liquidity facility that the company secured in August in anticipation of business uncertainties.
Business Segment Highlights
Ford Pro, the business segment dedicated to commercial customers, generated $1.7 billion in EBIT – a 12% margin – on $13.8 billion in revenue, which was up 16%. Ford Blue, which markets a lineup of gas and hybrid vehicles, delivered $1.7 billion in third-quarter EBIT – up 17% from last year. The business was again profitable in every region where it operates, driven by a strong and fresh product portfolio.
Outlook
Despite the positive results, Ford has withdrawn its guidance for full-year 2023 operating results due to the pending ratification of a tentative U.S. labor agreement. The company plans to report fourth-quarter and full-year 2023 financial results on Thursday, Feb. 1.
Explore the complete 8-K earnings release (here) from Ford Motor Co for further details.
