Ford shares drop as Novelis fire overshadows Q3 earnings beat

Investing.com -- Ford Motor Company (NYSE: F) reported third-quarter earnings that exceeded analyst expectations, but shares fell 2.3% as investors focused on the impact of a fire at a key supplier’s plant.

The automaker posted adjusted earnings of $0.45 per share, beating the analyst estimate of $0.35, while revenue reached a record $50.5 billion, surpassing the consensus forecast of $46.91 billion and rising 9% YoY. Despite these strong results, Ford warned of significant headwinds from a fire at aluminum supplier Novelis.

Ford expects the Novelis fire to create a 2025 adjusted EBIT headwind of $1.5 billion to $2 billion and an adjusted free cash flow headwind of about $2 billion to $3 billion in the fourth quarter. The company anticipates mitigating at least $1 billion of this impact in 2026.

"The strength of our underlying business was evident in our third quarter results," said Ford CFO Sherry House. "Adjusting for tariffs, year-over-year adjusted EBIT improved by $0.7 billion."

Ford Pro, the company’s commercial vehicle segment, continued to be a bright spot, generating $2 billion in EBIT on $17.4 billion in revenue. Ford Pro’s software subscriptions grew 8% sequentially to 818,000 subscribers. Meanwhile, Ford Blue reported $1.5 billion in EBIT, while Ford Model e posted a loss of $1.4 billion.

The company now forecasts full-year 2025 adjusted EBIT of $6 billion to $6.5 billion and adjusted free cash flow of $2 billion to $3 billion. Ford also announced plans to create up to 1,000 jobs to increase F-Series production to recover losses due to the Novelis fire and meet strong customer demand.

"We are heading into 2026 as a stronger and more agile company," said CEO Jim Farley. "We will continue to focus on execution and on quickly making the right strategic calls on propulsion, partnerships and technology."

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