Oct 28, 2026 earnings call — Raised full-year adjusted EBIT guidance
Company raised full-year adjusted EBIT guidance to between $10.5 billion and $11 billion.
Revenue $49.5B (est $49.1B) · EPS $0.49 (est $0.41)
Key quotes
"And the MSRP under $30,000 and the low cost of ownership is perfect for today's market."
"We remain on track to bring 20 gigawatt hours of annual capacity online by the end of next year."
"These auto adjacent businesses were significant drivers of the quarter's strong performance, contributing approximately 10% of the quarter's revenue at strong margins."
Analyst Q&A 11
What parts of 2027 plan they control
Q (Rajat Gupta · JPMorgan): How much of the 2027 offset is within Ford's control and what still needs work to hit the $2 billion guide?
A: They said the parts they control include revenue optimization, software and parts growth, and cost savings. They pointed to mix optimization, AI tools for demand and capacity, and better inventory and pricing models to stabilize returns despite commodity and macro uncertainty.
"I would say that the areas that we see more in our control would be the areas of revenue optimization, continued software and parts growth and also continued savings as well." — Sherry House (CFO)
UEV launch readiness and risks
Q (A. Kumar Galhotra): What remains to be de-risked before UEV launch on suppliers, software, battery cost, and how dependent is breakeven on meeting volume/cost targets?
A: They said launch progress is strong: most validation is done and they are building production vehicles and parts at rate. The main remaining risk is the supply base running at rate with high-quality parts; they will work on that in the next months, and they see the revenue picture improving.
Model e profit path and timing
Q (Emmanuel Rosner · Wolfe): Will Model e improve within 2027 EBIT, will investment rise for UEV and BESS, and what helps car-side improvement?
A: They reiterated the goal for Model e to reach breakeven by 2029 and said progress won't be linear with higher expenses in 2027. They expect a step change in profitability in the first half of 2028 as UEV and Ford Energy ramp revenue and European partnership products scale in later years.
"From a financial perspective, as I said in my comments, we're working towards our target for Model e to reach breakeven by 2029." — Sherry House (CFO)
Europe plans versus China imports
Q (Gautam Narayan · RBC): Are the Geely and Renault partnerships enough to fix Ford's Europe capacity and profit issues or is outside action needed?
A: They said Europe is different and they believe the Renault and Geely actions give the right plan to restore passenger car profitability with low capital and better EV margins. They are also working commercial solutions and assessing specific opportunities in Valencia, Romania and Turkey to build a profitable European business.
"We do feel like we know we have the right plan to right the ship in terms of our passenger car profitability with Renault and Geely, as you mentioned." — James Farley (CEO)
F-150 inventory level and year end target
Q (Joseph Spak · UBS): When you say F-150 stock will recover by year end, do you mean back to historical days supply or a lower target?
A: They said F-150 was at 49 days coming out of September, below their range, and they expect to stay on the low end toward year end without big stock builds. They target roughly the 50 to low-60 day supply range, which is much lower than past Ford levels and below competitors.
"I think when we talk specifically to our F-150 stock, we're running at 49 days coming out of September." — Andrew Frick (PRESIDENT)
Novelis recovery and $1B guide
Q (James Picariello · BNP Paribas): Is the 150,000 unit Novelis recovery still intact and what offsets keep the $1 billion net guide?
A: They said the Novelis operational recovery is going as planned and they are running at rate with most materials validated. Financially, costs have come in a little lower and volumes a bit lower, which still allows them to keep the $1 billion net tailwind guide for end of 2026.
"When you get to the financial side of it, we have seen costs coming in a little bit lower and the volumes have been proportionately a little bit lower, too." — Sherry House (CFO)
Ford Energy backlog and China exports impact
Q (Andrew Percoco · Morgan Stanley): Is the 80% contracted statement for 2028 implying 16 GWh backlog and what moves to fully contract it? Also, how will rising China exports affect Ford globally?
A: They said they are not disclosing backlog today and plan to start doing so next year, but they are ahead of expectations with customers and attribute that to product quality. On China, they see the most pressure in LATAM and Southeast Asia and especially Europe; they view their China exports and partnerships as a strength and say Europe is the main short-term concern.
"We believe it's one of the highest quality products out there in the market that you can buy." — David Carroll (PRESIDENT)
How to upsell Fathom above base price
Q (Jairam Nathan · Daiwa): With Fathom starting under $30,000, how will Ford upsell buyers to higher trims or options?
A: They said there will be a range up to the high $30,000s with multiple offerings, and more detail will come closer to launch. They highlighted the digital suite and a low-cost advanced electrical architecture as the main upsell, including advanced ADAS, digital dashboard and subscription services.
"The digital suite, including the embedded Apple Maps, is really a game changer for any EV, let alone at this price." — James Farley (CEO)
Pricing outlook for 2026 and 2027
Q (Mark Delaney · Goldman Sachs): What is driving stronger industry pricing for 2026 and what are early views for 2027, including Pro commercial negotiations?
A: They said they see a strong pricing environment and expect pricing to be up about a percentage point this year, with product mix and net pricing levers available next year. For commercial fleets they noted pricing over 1% year-over-year, strong '27 fleet orders, and Oakville capacity will help grow truck rental and meet demand.
"We expect pricing to be up about a percentage point this year." — Andrew Frick (PRESIDENT)
BESS capacity expansion and spending
Q (John Saager · Evercore): What commitments are needed to expand beyond 20 GWh BESS and what incremental CapEx and earnings effects might the ramp have?
A: They said the team is focused on launching the initial 20 GWh for 2028 and they are evaluating how to expand based on returns, customer demand, tax treatment and other capital uses, but have nothing to announce. They also said the planned Ford Energy investment is around $2 billion, with about 1/3 this year and about 2/3 next year.
"The only thing I would give is that we had talked about around $2 billion of investment, and we're going to spend about 1/3 of that this year and about 2/3 next year." — Sherry House (CFO)
What Ford learns from Geely and cost moves
Q (Dan Levy · Barclays): What concrete learnings will Ford get from Geely on suppliers and vehicle design, and how will that help reach Fathom profitability?
A: They said the partnership is teaching both lower landed cost in Europe and faster development speed on parts and systems, and Ford is studying each part to institutionalize those gains. They added that cost and quality learnings are being integrated companywide, and engineering improvements like more efficient motors are being applied across portfolios.
"We are already learning that they can offer a certain percentage lower cost landed in Europe for us." — A. Kumar Galhotra (COO)