Ford Motor Company Q3 2024 Earnings Report

Ford Motor Company (ticker: NYSE:F) demonstrated a solid financial performance in Q3 2024, boasting a revenue increase of 5% to over $46 billion, marking a decade of growth. The company reported an adjusted EBIT of $2.6 billion with a margin of 5.5%.

Earnings Highlights

• Revenue Growth: 5% increase to over $46 billion in Q3 2024.
• Adjusted EBIT: $2.6 billion with a margin of 5.5%.
• Cost Management: Achieved $1 billion cut in EV production costs this year.
• Ford Pro Business: 13% revenue growth to nearly $16 billion, EBIT margin of 11.6%.
• Model e: Faced a $1.2 billion loss, yet noted $500 million in cost improvements.
• Ford Blue: Revenue grew by 3%, EBIT of $1.6 billion, with a 6.2% margin.
• Dividends: Quarterly dividend of $0.15 per share declared; commitment to return 40%-50% of adjusted free cash flow to shareholders.
• Inventory: Slightly above target, supporting upcoming Q1 2025 launches.

Company Outlook

• 2024 Adjusted EBIT: Expected around $10 billion.
• Free Cash Flow: Projected $7.5-$8.5 billion.
• Challenges: Warranty costs and inflationary pressures remain.

Strategic Insights

• Restructuring: International operations have turned profitable.
• EV Strategy: Planning 150 new EV nameplates by 2026.
• Warranty Costs: Increased pressures noted, with strategic focus on improvement.
• Supply Chain: Continued challenges affecting production volumes, particularly for Ford Blue.

In conclusion, Ford remains focused on managing costs and enhancing quality amid industry challenges while maintaining a trajectory of growth and profitability in the evolving automotive market.