Ford Lowers 2025 Profit Guidance After Novelis Plant Fire Cost Billions

Ford Motor Company reported better-than-expected third-quarter results with a 9% revenue increase and adjusted earnings per share of 45 cents, surpassing analyst estimates. However, the automaker lowered its 2025 profit forecast due to a fire at its aluminum supplier Novelis' plant, which disrupted production of key models like the F-150 pickup trucks and SUVs, costing Ford an estimated $1.5 billion to $2 billion in adjusted EBIT. Ford expects to mitigate about $1 billion of these losses by 2026 through increased production of F-150 and Super Duty trucks at its Michigan and Kentucky plants, while pausing production of the F-150 Lightning electric pickup to prioritize more profitable gasoline and hybrid models. The fire also caused short-term working capital impacts, though these are expected to reverse next year, with capital expenditures remaining at around $9 billion. CFO Sherry House noted that without the Novelis incident, Ford would have raised its EBIT guidance to over $8 billion, but tariff relief measures under President Trump helped offset some costs. Despite the lowered guidance, Ford remains committed to its Ford+ plan, targeting $1 billion in savings and maintaining investments in its business.