FORD MOTOR CO
For the period ended Sep 30, 2025. Filed Oct 24, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Oct 24, 2025
F$12.44-0.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-07-31.
0000037996-25-000147
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-10-24.
0000037996-25-000186
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 247 previous paragraphs and 251 current paragraphs.
178 unchanged; 60 reworded; 11 added; 9 removed; 0 previous and 2 current paragraphs rearranged.
Tables are not compared: 30 previous and 30 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (11)
Current report
Production and Supply Chain
Current report
On September 17, 2025, a fire at a Novelis Inc. plant in New York disrupted operations at the facility. Novelis is a major aluminum supplier to Ford, and since the fire occurred, we have been working closely with Novelis to address the situation and exploring potential alternative sources of aluminum and mitigating actions to minimize potential disruptions to our operations. Although the ultimate impact on Ford and Ford Credit is uncertain, we expect lower production in the fourth quarter of 2025 driven by the Novelis fire, which we expect to recover partially in 2026. Lower production is likely to result in lower Ford Credit receivables and higher short-term available liquidity at Ford Credit. For more information regarding the impact and potential impact of the Novelis fire on our business, see the Outlook section on page 56 of this 10-Q Report.
Current report
See Item 1A. Risk Factors in our 2024 Form 10-K Report for additional discussion of the risks related to disruptions to Ford’s and Ford’s suppliers’ production and operations.
Current report
Although we are investing in our electric vehicle strategy, we anticipate that the market for EVs will continue to change. To date, we have observed lower-than-anticipated industrywide EV adoption rates due to changes in consumer sentiment, competitive dynamics, and legal and policy changes, among other factors, which we continue to monitor. The recent termination of U.S. tax credits intended to incentivize the purchase of EVs may negatively affect EV adoption rates and/or pricing. Moreover, potentially significant reductions in the stringency of federal emissions and fuel economy standards and federal legislation that eliminated the authority of California and other states to implement and enforce their most stringent emissions standards and zero-emission vehicle sales requirements, and other actions that may be forthcoming, may add to the disruption of the market for EVs in the United States, our largest market. These developments, which may continue to affect the pace of EV adoption, could extend the period of underutilization of EV production capacity across the industry.
Current report
We recorded a $1.1 billion benefit from tax special items in the third quarter of 2025, including a net benefit of $1.4 billion associated with the release of a valuation allowance resulting from improvements in our South American operations and a non-cash charge of $0.4 billion to deferred tax assets to recognize tax legislation enacted in Germany during the quarter.
Current report
In the third quarter of 2025, Ford Blue’s wholesales increased 2% from a year ago. The increase primarily reflects higher sales of vehicles manufactured and sold to other OEMs through existing alliance agreements and higher wholesales in North America, offset partially by lower passenger vehicle sales in Europe and lower sales at our joint ventures in China. Third quarter 2025 revenue increased 7%, driven primarily by higher wholesales, favorable net pricing, and improved mix.
Current report
Our Provision for/(Benefit from) income taxes for the third quarter and first nine months of 2025 was a benefit of $630 million and a provision of $88 million, respectively. This resulted in an effective tax rate of negative 34.7% for the third quarter and 3.0% for the first nine months. During the third quarter, these rates were impacted by a net benefit of $1.4 billion associated with the release of a valuation allowance resulting from improvements in our South American operations. The third quarter and first nine months rates were also impacted by a non-cash charge of $424 million to deferred tax assets to recognize the impact of tax legislation enacted in Germany during the quarter. In addition, the nine-month rate was impacted by a non-cash charge of $471 million to deferred tax assets recorded in the second quarter associated with resolving transfer pricing matters in certain non-U.S. operations. The foregoing were treated as special items.
Current report
Our updated 2025 outlook includes the following assumptions:
Current report
•For Novelis, an adjusted EBIT headwind of $1.5 billion to $2.0 billion and an adjusted free cash flow headwind of $2.0 billion to $3.0 billion in the fourth quarter. We currently have line of sight to mitigate at least $1.0 billion of adjusted EBIT in 2026, and we are working to improve the situation further. Between 2025 and 2026, we expect Novelis to be a headwind of $1.0 billion or less. Production disruption results in an oversized short-term impact on our working capital, which we expect will reverse in 2026.
Current report
•Given recent policy announcements by the administration in the United States, we now expect tariffs will be an about $1.0 billion net headwind for 2025, down from about $2.0 billion.
Current report
•Full year U.S. industry pricing up about 0.5%
Removed paragraphs (9)
Previous report
We recorded a $233 million provision for tax special items in the second quarter of 2025, including a $471 million non-cash charge to deferred tax assets associated with resolving transfer price matters in certain non-U.S. operations.
Previous report
In the second quarter of 2025, Ford Blue’s wholesales decreased 6% from a year ago. The decrease primarily reflects lower F-150 wholesales due to the non-repeat of the stock build in 2024 following the launch of the new model. Second quarter 2025 revenue decreased 3%, driven primarily by lower wholesales and unfavorable exchange, offset partially by favorable mix and pricing.
Previous report
Our Provision for/(Benefit from) income taxes for the second quarter and first half of 2025 was $570 million and $718 million, respectively, resulting in effective tax rates of 105.4% and 61.8%, respectively. During the second quarter of 2025, we recognized a non-cash charge to deferred tax assets of $471 million associated with resolving transfer pricing matters in certain non-U.S. operations.
Previous report
During the third quarter of 2025, we expect to recognize a non-cash charge to deferred tax assets of about $400 million to recognize the impact of tax legislation enacted in Germany on July 18, 2025. We expect the charge to be treated as a tax special item.
Previous report
Our finished product inventory at June 30, 2025 was higher than at December 31, 2024, reflecting higher in-transit and in-plant inventory.
Previous report
•Full year industry pricing about flat
Previous report
•Net tariff headwind of about $2.0 billion
Previous report
Our assumption for the net tariff headwind reflects approximately $3.0 billion of gross adverse adjusted EBIT impact, offset partially by $1.0 billion of recovery actions (primarily market factors).
Previous report
(a) In the second quarter of 2025, there were 45 million shares excluded from the calculation of diluted earnings/(loss) per share, due to their anti-dilutive effect.
Reworded paragraphs (60)
Previous wording
In the second quarter of 2025, Ford’s net EBIT impact related to tariffs implemented or revised in 2025 was about $800 million, including the impact of preferential tariff treatment and import adjustment offset amounts. These offsets are subject to periodic approval by the U.S. Department of Commerce and may be revised based on ultimate production and import levels.
Current wording
In the third quarter of 2025, Ford’s net EBIT impact related to tariffs implemented or revised in 2025 was about $700 million, including the impact of preferential tariff treatment and import adjustment offset amounts. These offsets, which the U.S. government recently expanded, are subject to periodic approval by the U.S. Department of Commerce and may be revised based on ultimate production and import levels. As of September 30, 2025, our balance sheet includes a receivable of about $1 billion reflecting tariffs paid but for which we have not yet received refunds for preferential tariff treatment and import adjustment offsets. The timing for our receipt of these refunds is uncertain and depends, in part, on the category of the tariff.
Previous wording
Although we continue to invest in our electric vehicle strategy, we have observed lower-than-anticipated industrywide electric vehicle adoption rates and near-term pricing pressures, which has led us, and may in the future lead us, to adjust our investments, spending, production, and/or product or future technology launches to better match the pace of electric vehicle adoption. We previously announced the cancellation of an all-electric three-row SUV program. In addition to incurring expenses of $1.3 billion through the first quarter of 2025 for the cancellation of that program and for which we may continue to incur expenses, the impact of that cancellation has resulted in changes to future technology and product launches, for which we have incurred and may continue to incur additional expenses. In the second quarter of 2025, we recorded $308 million of expenses related to the program cancellation and resulting actions. We may incur additional expenses and cash expenditures of about $1.5 billion and will reflect those in the quarter they are incurred as a special item. Further, significant unexpected changes in the EV demand environment have led, and may in the future lead, to incremental competitive pricing actions, and we may continue to incur expenses related to payments to our electric vehicle-related suppliers (battery, raw material, or otherwise), asset write-downs, or other matters. These market dynamics may continue to occur, which could have a substantial adverse impact on our business, including our investments in supply, production capacity, and equity method investments. In addition, policy changes in the United States are currently phasing out certain demand-side incentives to purchase EVs and may further reduce supply-side benefits to produce EVs, all of which may result in slower adoption of EVs or otherwise disrupt the market for EVs.
Current wording
This environment has led us, and may in the near future lead us, to adjust our investments, spending, production, and product or future technology launches to better match the pace of electric vehicle adoption and take incremental pricing actions. As a result of these adjustments and actions, we have incurred, and may continue to incur, significant expenses related to program cancellation costs or otherwise, including payments to our electric vehicle-related suppliers (battery, raw material, or otherwise), asset write-downs, or other matters.
Previous wording
Further, the pace of EV adoption and slower-than-anticipated development of the EV market may impact our strategy to comply with regulatory standards. Although recent actions taken or expected to be taken in the United States and elsewhere may reduce the stringency of such standards, if consumers do not purchase our EVs and other highly fuel-efficient vehicles in sufficient numbers, it may be difficult for Ford to meet applicable environmental standards in certain markets and may force us to take various product-led actions (e.g., curtailing the production and sale of certain internal combustion vehicles) that could have substantial adverse effects on our sales volume and operations. As previously reported, we have entered into agreements to purchase regulatory compliance credits for current and future model years in various regions, as, in some cases, we plan to utilize credits purchased from third parties to demonstrate regulatory compliance. Our obligations under these agreements generally are dependent on the continued existence of an underlying regulatory compliance requirement in the applicable jurisdiction. Following federal legislative action taken in the United States in the second quarter of 2025 that eliminated certain state compliance programs, we exercised our contractual right to terminate some of the credit purchase transactions under those agreements. As a result of these terminations, in addition to the delivery of credits to us under our purchase agreements and accruals we recorded for credits we are obligated to receive, our future purchase obligations under our compliance credit purchase agreements as of June 30, 2025 totaled about $2.8 billion, down from about $4.2 billion at December 31, 2024. In addition, we have written off, and may in the future write off, compliance credit assets that we are no longer able to use as a result of legislative or regulatory changes. Write-offs to date for such credit assets have been immaterial.
Current wording
Further, the pace of EV adoption and slower-than-anticipated development of the EV market may impact our strategy to comply with regulatory emissions and fuel economy standards and zero-emission vehicle requirements. Although recent actions taken and expected to be taken in the United States and elsewhere may eliminate or reduce the stringency of such standards, if consumers do not purchase our EVs and other highly fuel-efficient vehicles in sufficient numbers, it may be difficult for Ford to meet applicable environmental standards in certain markets and may force us to take various product-led actions (e.g., curtailing the production and sale of certain internal combustion vehicles) that could have substantial adverse effects on our sales volume and operations. As previously reported, we have entered into agreements to purchase regulatory compliance credits for current and future model years in various regions, as, in some cases, we plan to utilize credits purchased from third parties to demonstrate regulatory compliance. Our obligations under these agreements generally are dependent on the continued existence of an underlying regulatory compliance requirement in the applicable jurisdiction. To the extent possible and beneficial, we will terminate or renegotiate agreements in response to regulatory changes, as authorized by those agreements. For example, following federal legislative action taken in the United States in the second quarter of 2025 that eliminated certain state authority for new vehicle emissions standards and zero-emission vehicle requirements, we exercised our contractual right to terminate some of the credit purchase transactions under those agreements. As a result of these terminations, in addition to the delivery of credits to us under our purchase agreements and accruals we recorded for credits we are obligated to receive, our future purchase obligations under our compliance credit purchase agreements as of September 30, 2025 totaled about $2.5 billion, down from about $4.2 billion at December 31, 2024. In addition, we have written off, and may in the future write off, compliance credit assets that we are no longer able to use as a result of legal and policy changes. Write-offs to date for such credit assets have been immaterial.
Previous wording
In the second quarter of 2025, the net loss attributable to Ford Motor Company was $36 million, and Company adjusted EBIT was $2,140 million.
Current wording
In the third quarter of 2025, the net income attributable to Ford Motor Company was $2,447 million, and Company adjusted EBIT was $2,586 million.
Previous wording
We recorded $1,302 million of pre-tax special item charges in the second quarter of 2025, primarily reflecting a field service action for fuel injectors, expenses related to the cancellation of a previously planned all-electric three-row SUV program and resulting actions (for additional details, please see the discussion of the Electric Vehicle Market in the “Recent Developments” section on page 34), our share of asset impairments at an equity method investment, and our share of BOSK’s asset write downs and other expenses due to BOSK’s alternative capacity usage plans.
Current wording
We recorded $0.4 billion of pre-tax special item charges in the third quarter of 2025, primarily reflecting restructuring actions in Europe and our share of asset impairments and other related expenses at an equity method investment.
Previous wording
The table below shows our second quarter and first half 2025 key metrics for the Company, compared to a year ago.
Current wording
The table below shows our third quarter and first nine months of 2025 key metrics for the Company, compared to a year ago.
Previous wording
In the second quarter of 2025, our diluted earnings per share of Common and Class B Stock was a loss of $0.01, and our diluted adjusted earnings per share was $0.37.
Current wording
In the third quarter of 2025, our diluted earnings per share of Common and Class B Stock was $0.60, and our diluted adjusted earnings per share was $0.45.
Previous wording
Net income/(loss) margin was negative 0.1% in the second quarter of 2025, down 3.9 percentage points from a year ago. Company adjusted EBIT margin was 4.3% in the second quarter of 2025, down 1.5 percentage points from a year ago.
Current wording
Net income/(loss) margin was 4.8% in the third quarter of 2025, up 2.9 percentage points from a year ago. Company adjusted EBIT margin was 5.1% in the third quarter of 2025, down 0.4 percentage points from a year ago.
Previous wording
The table below shows the details of our second quarter and first half 2025 net income/(loss) attributable to Ford and Company adjusted EBIT (in millions).
Current wording
The table below shows the details of our third quarter and first nine months 2025 net income/(loss) attributable to Ford and Company adjusted EBIT (in millions).
Previous wording
The year-over-year decrease of $1,867 million in net income and $617 million in Company adjusted EBIT in the second quarter of 2025 was driven by lower Ford Blue, Ford Pro, and Model e EBIT, offset partially by higher Ford Credit EBT. The decrease in net income was also driven by higher special item charges, as described on page 36.
Current wording
The year-over-year increase of $1,555 million in net income is primarily explained by lower special item charges, including lower charges related to the cancellation of a previously planned all-electric three-row SUV program, and increased tax benefits, including the tax special items described on page 37. The increase of $36 million in Company adjusted EBIT in the third quarter of 2025 primarily reflects higher Ford Pro EBIT and Ford Credit EBT, offset partially by lower Model e and Ford Blue EBIT.
Previous wording
The tables below and on the following pages provide second quarter and first half 2025 key metrics and the change in second quarter 2025 EBIT compared with second quarter 2024 by causal factor for each of our Ford Blue, Ford Model e, and Ford Pro segments. For a description of these causal factors, see Definitions and Information Regarding Ford Blue, Ford Model e, Ford Pro Causal Factors.
Current wording
The tables below and on the following pages provide third quarter and first nine months of 2025 key metrics and the change in third quarter 2025 EBIT compared with third quarter 2024 by causal factor for each of our Ford Blue, Ford Model e, and Ford Pro segments. For a description of these causal factors, see Definitions and Information Regarding Ford Blue, Ford Model e, and Ford Pro Causal Factors.
Previous wording
(a)Includes Ford and Lincoln brand and JMC brand vehicles produced and sold in China by our unconsolidated affiliates (about 105,000 units in Q2 2024 and 97,000 units in Q2 2025).
Current wording
(a)Includes Ford and Lincoln brand and JMC brand vehicles produced and sold in China by our unconsolidated affiliates (about 101,000 units in Q3 2024 and 90,000 units in Q3 2025).
Previous wording
Ford Blue’s second quarter 2025 EBIT was $661 million, a decrease of $506 million from a year ago, with an EBIT margin of 2.6%. The lower EBIT primarily reflects lower volume and adverse exchange, offset partially by lower costs and favorable net pricing. The lower costs reflect ongoing cost reduction initiatives, including lower warranty costs, which more than offset increased tariff-related costs.
Current wording
Ford Blue’s third quarter 2025 EBIT was $1,540 million, a decrease of $84 million from a year ago, with an EBIT margin of 5.5%. The lower EBIT primarily reflects higher costs, including tariffs, and adverse exchange, offset partially by favorable net pricing and higher volume and mix. Excluding tariffs, cost improved year-over-year, reflecting ongoing cost reduction initiatives, including lower material and warranty costs.
Previous wording
In the second quarter of 2025, Ford Model e’s wholesales increased significantly from a year ago, primarily due to the launch of EV products in Europe, including the Explorer, Puma, and Capri, and higher F-150 Lightning and Mustang Mach-E wholesales in North America. Second quarter 2025 revenue increased by $1,207 million, reflecting higher wholesales.
Current wording
In the third quarter of 2025, Ford Model e’s wholesales increased significantly from a year ago, primarily reflecting the introduction of EV products in Europe, including the Puma Gen-E and Capri, and higher F-150 Lightning wholesales in North America. Third quarter 2025 revenue increased by $608 million, primarily reflecting higher wholesales.
Previous wording
Ford Model e’s second quarter 2025 EBIT loss was $1,329 million, a $179 million higher loss than a year ago, with an EBIT margin of negative 56.4%. The increased EBIT loss was primarily driven by tariff-related costs, volume-related manufacturing costs, and adverse net pricing.
Current wording
Ford Model e’s third quarter 2025 EBIT loss was $1,410 million, a $179 million higher loss than a year ago, with an EBIT margin of negative 79.1%. The increased EBIT loss was primarily driven by adverse net pricing, a one-time charge related to the Louisville Assembly Plant changeover (included in Other), and unfavorable exchange, offset partially by higher volume and lower costs. The lower costs include lower material and warranty costs, which more than offset increased tariff-related costs.
Previous wording
(a)Includes Ford brand vehicles produced and sold by our unconsolidated affiliate Ford Otosan in Türkiye (about 21,000 units in both Q2 2024 and Q2 2025).
Current wording
(a)Includes Ford brand vehicles produced and sold by our unconsolidated affiliate Ford Otosan in Türkiye (about 21,000 units in Q3 2024 and 23,000 in Q3 2025).
Previous wording
In the second quarter of 2025, Ford Pro’s wholesales increased 15% from a year ago, driven by higher daily rental volume and higher sales of the Transit family of vehicles, including the launch of the E-Transit Custom and E-Transit Courier in Europe. Second quarter 2025 revenue increased 11%, primarily reflecting higher wholesales, offset partially by moderated pricing across fleets (including daily rental).
Current wording
In the third quarter of 2025, Ford Pro’s wholesales increased 9% from a year ago, driven by higher daily rental volume in North America and higher sales of the Transit family of vehicles, including the introduction of the E-Transit Custom and E-Transit Courier in Europe. Third quarter 2025 revenue increased 11%, primarily reflecting higher wholesales and favorable exchange, offset partially by moderated pricing across fleets (including daily rental).
Previous wording
Ford Pro’s second quarter 2025 EBIT was $2,318 million, a decrease of $244 million from a year ago, with an EBIT margin of 12.3%. The lower EBIT was primarily driven by unfavorable fleet pricing (including daily rental), tariff-related costs, and volume-related manufacturing costs, offset partially by higher volume.
Current wording
Ford Pro’s third quarter 2025 EBIT was $1,985 million, an increase of $172 million from a year ago, with an EBIT margin of 11.4%. The higher EBIT was primarily driven by higher volume and favorable exchange, offset partially by unfavorable fleet pricing (including daily rental) and higher cost. Excluding tariffs, cost improved year-over-year, driven by lower warranty and material costs.
Previous wording
The tables below provide second quarter and first half 2025 key metrics and the change in second quarter 2025 EBT compared with second quarter 2024 by causal factor for the Ford Credit segment. For a description of these causal factors, see Definitions and Information Regarding Ford Credit Causal Factors.
Current wording
The tables below provide third quarter and first nine months of 2025 key metrics and the change in third quarter 2025 EBT compared with third quarter 2024 by causal factor for the Ford Credit segment. For a description of these causal factors, see Definitions and Information Regarding Ford Credit Causal Factors.
Previous wording
(b)U.S. portfolio off-lease second quarter auction values at Q2 2025 mix and YTD amounts at YTD 2025 mix.
Current wording
(b)U.S. portfolio off-lease third quarter auction values at Q3 2025 mix and YTD amounts at YTD 2025 mix.
Previous wording
Ford Credit’s total net receivables of $143.7 billion were 4% higher than a year ago, explained primarily by a larger operating lease portfolio, higher consumer financing, and exchange. The second quarter 2025 U.S. loss-to-receivables (“LTR”) ratio of 48 basis points increased from a year ago, reflecting higher repossessions and increased loss severity. U.S. auction values increased 4% year over year, reflecting industrywide low used vehicle supply and high demand.
Current wording
Ford Credit’s total net receivables of $145.7 billion were 2% higher than a year ago, explained primarily by a larger operating lease portfolio. The third quarter 2025 U.S. loss-to-receivables (“LTR”) ratio of 62 basis points increased from a year ago, reflecting increased loss severity and higher repossessions. U.S. auction values increased 3% year over year, reflecting industrywide low used vehicle supply and high demand.
Previous wording
Ford Credit’s second quarter 2025 EBT of $645 million was $302 million higher than a year ago, explained primarily by higher financing margin and receivables and a favorable derivative market valuation adjustment (included in Other), partially offset by an accrual related to an industrywide review of historical U.K. discretionary dealer commissions (also included in Other).
Current wording
Ford Credit’s third quarter 2025 EBT of $631 million was $87 million higher than a year ago, explained primarily by higher financing margin and receivables, offset partially by Other and higher credit losses. Other reflects a charge related to an industrywide review by the U.K. Financial Conduct Authority into the historical use of dealer commissions and the non-recurrence of a realized gain on accumulated foreign currency translation related to Europe restructuring in third quarter 2024, offset partially by the non-recurrence of a negative derivative market valuation adjustment.
Previous wording
Corporate Other primarily includes corporate governance expenses, past service pension and OPEB income and expense, interest income (excluding Ford Credit interest income and interest earned on our extended service contract portfolio) and gains and losses from our cash, cash equivalents, and marketable securities, and foreign exchange derivatives gains and losses associated with intercompany lending. Corporate governance expenses are primarily administrative, delivering benefit on behalf of the global enterprise, that are not allocated to operating segments. These include expenses related to setting and directing global policy, providing oversight and stewardship, and promoting the Company’s interests. In the second quarter of 2025, Corporate Other had a $155 million EBIT loss, compared to a $165 million EBIT loss a year ago.
Current wording
Corporate Other primarily includes corporate governance expenses, past service pension and OPEB income and expense, interest income (excluding Ford Credit interest income and interest earned on our extended service contract portfolio) and gains and losses from our cash, cash equivalents, and marketable securities, and foreign exchange derivatives gains and losses associated with intercompany lending. Corporate governance expenses are primarily administrative, delivering benefit on behalf of the global enterprise, that are not allocated to operating segments. These include expenses related to setting and directing global policy, providing oversight and stewardship, and promoting the Company’s interests. In the third quarter of 2025, Corporate Other had a $160 million EBIT loss, compared to a $200 million EBIT loss a year ago.
Previous wording
Interest on Debt, which consists of interest expense on Company debt excluding Ford Credit, was $297 million in the second quarter of 2025, $27 million higher than a year ago.
Current wording
Interest on Debt, which consists of interest expense on Company debt excluding Ford Credit, was $321 million in the third quarter of 2025, $49 million higher than a year ago.
Previous wording
Our second quarter and first half 2025 adjusted effective tax rates, which exclude special items, were 18.3% and 20.0%, respectively.
Current wording
Our third quarter and first nine months 2025 adjusted effective tax rates, which exclude special items, were 19.6% and 19.8%, respectively.
Previous wording
On July 4, 2025, P.L. 119-21 (otherwise known as the “One Big Beautiful Bill Act”) was signed into law. We are analyzing the provisions within the act; however, we do not expect a material impact on our 2025 consolidated financial statements.
Current wording
On July 4, 2025, P.L. 119-21 (otherwise known as the “One Big Beautiful Bill Act”) was signed into law. We have analyzed the provisions within the act and determined there was no material impact in the third quarter of 2025, nor do we expect a material impact on our 2025 consolidated financial statements.
Previous wording
We regularly review our organizational structure and income tax elections for affiliates in non-U.S. and U.S. tax jurisdictions, which may result in changes in affiliates that are included in or excluded from our U.S. tax return. Any future changes to our structure, as well as any changes in income tax laws in the countries that we operate, could cause increases or decreases to our deferred tax balances and related valuation allowances. For example, in the near-term, we anticipate releasing valuation allowances in certain jurisdictions where restructuring actions have improved business operations.
Current wording
We regularly review our organizational structure and income tax elections for affiliates in non-U.S. and U.S. tax jurisdictions, which may result in changes in affiliates that are included in or excluded from our U.S. tax return. Any future changes to our structure, as well as any changes in income tax laws in the countries that we operate, could cause increases or decreases to our deferred tax balances and related valuation allowances.
Previous wording
At June 30, 2025, total cash, cash equivalents, marketable securities, and restricted cash, including Ford Credit and entities held for sale, was $37.7 billion.
Current wording
At September 30, 2025, total cash, cash equivalents, marketable securities, and restricted cash, including Ford Credit and entities held for sale, was $42.5 billion.
Previous wording
Liquidity. Our key priority is to maintain a strong balance sheet to withstand potential stress scenarios, while having resources available to invest in and grow our business. At June 30, 2025, we had Company cash of $28.4 billion and liquidity of $46.6 billion. At June 30, 2025, about 82% of Company cash was held by consolidated entities domiciled in the United States.
Current wording
Liquidity. Our key priority is to maintain a strong balance sheet to withstand potential stress scenarios, while having resources available to invest in and grow our business. At September 30, 2025, we had Company cash of $32.9 billion and liquidity of $54.0 billion. At September 30, 2025, about 87% of Company cash was held by consolidated entities domiciled in the United States.
Previous wording
•Purchase of raw materials and components to support the manufacturing and sale of vehicles (including electric vehicles), parts, and accessories (for additional information, see the Aggregate Contractual Obligations table and the accompanying description of our “Purchase obligations” in the “Liquidity and Capital Resources - Company Excluding Ford Credit” section in Item 7 of our 2024 Form 10-K Report)
Current wording
•Purchase of raw materials and components to support the manufacturing and sale of vehicles (including electric vehicles), parts, accessories, and payment of tariffs (for additional information, see the Aggregate Contractual Obligations table and the accompanying description of our “Purchase obligations” in the “Liquidity and Capital Resources - Company Excluding Ford Credit” section in Item 7 of our 2024 Form 10-K Report)
Previous wording
With respect to “Changes in working capital,” in general, the Company excluding Ford Credit carries relatively low trade receivables compared with our trade payables because the majority of our wholesales are financed (primarily by Ford Credit) immediately upon the sale of vehicles to dealers, which generally occurs shortly after being produced. In contrast, our trade payables are based primarily on industry-standard production supplier payment terms of about 45 days. As a result, our cash flow deteriorates if wholesale volumes (and the corresponding revenue) decrease while trade payables continue to become due. Conversely, our cash flow improves if wholesale volumes (and the corresponding revenue) increase while new trade payables are generally not due for about 45 days. For example, the suspension of production at most of our assembly plants and lower industry volumes due to COVID-19 in early 2020 resulted in an initial deterioration of our cash flow, while the subsequent resumption of manufacturing operations and return to pre-COVID-19 production levels at most of our assembly plants resulted in a subsequent improvement of our cash flow. Even in normal economic conditions, however, these working capital balances generally are subject to seasonal changes that can impact cash flow. For example, we typically experience cash flow timing differences associated with inventories and payables due to our annual shutdown periods when production, and therefore inventories and wholesale volumes, are usually at their lowest levels, while payables continue to come due and be paid. The net impact of this typically results in cash outflows from changes in our working capital balances during these shutdown periods.
Current wording
With respect to “Changes in working capital,” in general, the Company excluding Ford Credit carries relatively low trade receivables compared with our trade payables because the majority of our wholesales are financed (primarily by Ford Credit) immediately upon the sale of vehicles to dealers, which generally occurs shortly after being produced. In contrast, our trade payables are based primarily on industry-standard production supplier payment terms of about 45 days. As a result, our cash flow deteriorates if wholesale volumes (and the corresponding revenue) decrease while trade payables continue to become due. Conversely, our cash flow improves if wholesale volumes (and the corresponding revenue) increase while new trade payables are generally not due for about 45 days. For example, the suspension of production at most of our assembly plants and lower industry volumes due to COVID-19 in early 2020 resulted in an initial deterioration of our cash flow, while the subsequent resumption of manufacturing operations and return to pre-COVID-19 production levels at most of our assembly plants resulted in a subsequent improvement of our cash flow. Disruptions to our production due to supplier shortages or otherwise may have similar cash flow timing impacts. Even in normal economic conditions, however, these working capital balances generally are subject to seasonal changes that can impact cash flow. For example, we typically experience cash flow timing differences associated with inventories and payables due to our annual shutdown periods when production, and therefore inventories and wholesale volumes, are usually at their lowest levels, while payables continue to come due and be paid. The net impact of this typically results in cash outflows from changes in our working capital balances during these shutdown periods.
Previous wording
In response to, or in anticipation of, supplier disruptions, we may stockpile certain components or raw materials to help prevent disruption in our production of vehicles. Such actions could have a short-term adverse impact on our cash and increase our inventory. Moreover, in order to secure critical materials for production of electric vehicles, we have entered into and we may, in the future, enter into offtake agreements with raw material suppliers and make investments in certain raw material and battery suppliers, including contributing up to a maximum of $6.6 billion in capital to BlueOval SK, LLC (“BOSK”) over a five-year period ending in 2026. As of June 30, 2025, we have recognized contributions (net of returns of capital) to BOSK of $2.6 billion (for additional information, see Note 17 of the Notes to the Financial Statements herein). Our actual capital outlay could vary significantly based on the final project costs and potential financing opportunities. Such investments could have an additional adverse impact on our cash in the near-term.
Current wording
In response to, or in anticipation of, supplier disruptions, we may stockpile certain components or raw materials to help prevent disruption in our production of vehicles. Such actions could have a short-term adverse impact on our cash and increase our inventory. Moreover, in order to secure critical materials for production of electric vehicles, we have entered into and we may, in the future, enter into offtake agreements with raw material suppliers and make investments in certain raw material and battery suppliers, including contributing up to a maximum of $6.6 billion in capital to BlueOval SK, LLC (“BOSK”) over a five-year period ending in 2026. As of September 30, 2025, we have recognized contributions (net of returns of capital) to BOSK of $2.9 billion (for additional information, see Note 17 of the Notes to the Financial Statements herein). Our actual capital outlay could vary significantly based on the final project costs and potential financing opportunities. Such investments could have an additional adverse impact on our cash in the near-term.
Previous wording
The terms of the offtake agreements we have entered into, and those we may enter into in the future, vary by transaction, though they generally obligate us to purchase a certain percentage or minimum amount of output produced by the counterparty over an agreed upon period of time. The purchase price mechanisms included in the offtake agreements are typically based on the market price of the material at the time of delivery. The terms may also include conditions to our obligation to purchase the materials, such as quality or minimum output. Subject to satisfaction of those conditions, we will be obligated to purchase the materials or otherwise compensate the supplier in an amount determined by the contract. As of June 30, 2025, our estimated expenditures for the maximum quantity that we are committed to purchase under these offtake agreements through 2035, subject to certain conditions, consist of approximately $1.7 billion of purchase obligations and approximately $4.8 billion of contingent purchase obligations based on our present forecast; however, our forecast could fluctuate from period to period based on market prices, which may result in significant increases or decreases in our estimate. The actual price paid for these materials will be recorded on our balance sheet at the time of purchase. In the event that we do not expect to consume all of the materials we are obligated to purchase pursuant to the terms of these agreements, we may sell the excess materials back to the supplier or another party. The resale price may or may not be the same as the original purchase price, depending on then-current market conditions and negotiated terms. As a result, we have recorded, and may in the future record, accruals related to either the resale when the purchase price mechanism under our agreements is higher than the expected resale price of the excess materials or when we are required to otherwise compensate the supplier. Accruals recorded to date for such items have been immaterial.
Current wording
The terms of the offtake agreements we have entered into, and those we may enter into in the future, vary by transaction, though they generally obligate us to purchase a certain percentage or minimum amount of output produced by the counterparty over an agreed upon period of time. The purchase price mechanisms included in the offtake agreements are typically based on the market price of the material at the time of delivery. The terms may also include conditions to our obligation to purchase the materials, such as quality or minimum output. Subject to satisfaction of those conditions, we will be obligated to purchase the materials or otherwise compensate the supplier in an amount determined by the contract. As of September 30, 2025, our estimated expenditures for the maximum quantity that we are committed to purchase under these offtake agreements through 2035, subject to certain conditions, consist of approximately $1.4 billion of purchase obligations and approximately $4.2 billion of contingent purchase obligations based on our present forecast; however, our forecast could fluctuate from period to period based on market prices, which may result in significant increases or decreases in our estimate. The actual price paid for these materials will be recorded on our balance sheet at the time of purchase. In the event that we do not expect to consume all of the materials we are obligated to purchase pursuant to the terms of these agreements, we may sell the excess materials back to the supplier or another party. The resale price may or may not be the same as the original purchase price, depending on then-current market conditions and negotiated terms. As a result, we have recorded, and may in the future record, accruals related to either the resale when the purchase price mechanism under our agreements is higher than the expected resale price of the excess materials or when we are required to otherwise compensate the supplier. Accruals recorded to date for such items have been immaterial.
Previous wording
Financial institutions participate in a supply chain finance (“SCF”) program that enables our suppliers, at their sole discretion, to sell their Ford receivables (i.e., our payment obligations to the suppliers) to the financial institutions on a non-recourse basis in order to be paid earlier than our payment terms provide. Our suppliers’ voluntary inclusion of invoices in the SCF program has no bearing on our payment terms, the amounts we pay, or our liquidity. We have no economic interest in a supplier’s decision to participate in the SCF program, and we do not provide any guarantees in connection with it. As of June 30, 2025, the outstanding amount of Ford receivables that suppliers elected to sell to the SCF financial institutions was $164 million. The amount settled through the SCF program during the first half of 2025 was $605 million.
Current wording
Financial institutions participate in a supply chain finance (“SCF”) program that enables our suppliers, at their sole discretion, to sell their Ford receivables (i.e., our payment obligations to the suppliers) to the financial institutions on a non-recourse basis in order to be paid earlier than our payment terms provide. Our suppliers’ voluntary inclusion of invoices in the SCF program has no bearing on our payment terms, the amounts we pay, or our liquidity. We have no economic interest in a supplier’s decision to participate in the SCF program, and we do not provide any guarantees in connection with it. As of September 30, 2025, the outstanding amount of Ford receivables that suppliers elected to sell to the SCF financial institutions was $188 million. The amount settled through the SCF program during the first nine months of 2025 was $951 million.
Previous wording
Our second quarter 2025 Net cash provided by/(used in) operating activities was $6.3 billion, $0.8 billion higher than a year ago (see page 61 for additional information). The increase primarily reflects higher Ford Credit operating cash flows and working capital changes, offset partially by lower net income. Company adjusted free cash flow was $2.8 billion, $0.4 billion lower than a year ago, primarily driven by lower Company adjusted EBIT excluding Ford Credit and all other and timing differences, offset partially by higher Ford Credit distributions and working capital changes.
Current wording
Our third quarter 2025 Net cash provided by/(used in) operating activities was $7.4 billion, $1.9 billion higher than a year ago (see page 62 for additional information). The increase primarily reflects higher net income and higher Ford Credit operating cash flows. Company adjusted free cash flow was $4.3 billion, $1.1 billion higher than a year ago, primarily driven by timing differences, improved working capital, higher Ford Credit distributions, and lower cash taxes.
Previous wording
Capital spending was $2.1 billion in the second quarter of 2025, the same as a year ago. We now expect full year 2025 capital spending to be about $9 billion.
Current wording
Capital spending was $2.1 billion in the third quarter of 2025, about flat compared to a year ago. We continue to expect full year 2025 capital spending to be about $9 billion.
Previous wording
Second quarter 2025 working capital impact was $0.3 billion, driven by lower inventory and higher payables, offset by higher receivables, each compared to March 31, 2025. All other and timing differences were $1.8 billion. Timing differences include differences between accrual-based EBIT and the associated cash flows (e.g., marketing incentive and warranty payments to dealers, JV equity income, compensation payments, and pension and OPEB income or expense). Cash outflows related to our warranty accruals are expected to occur over several years.
Current wording
Third quarter 2025 working capital impact was $1.2 billion, driven by lower inventory, higher payables, and lower receivables, each compared to June 30, 2025. All other and timing differences were $2.0 billion. Timing differences include differences between accrual-based EBIT and the associated cash flows (e.g., marketing incentive and warranty payments to dealers, JV equity income, compensation payments, and pension and OPEB income or expense). Cash outflows related to our warranty accruals are expected to occur over several years.
Previous wording
In the second quarter of 2025, we contributed $281 million to our global funded pension plans. We continue to expect to contribute about $800 million to our global funded pension plans in 2025.
Current wording
In the third quarter of 2025, we contributed $187 million to our global funded pension plans. We now expect to contribute about $750 million to our global funded pension plans in 2025.
Previous wording
Shareholder distributions were $0.6 billion in the second quarter of 2025, all of which was attributable to our regular dividend.
Current wording
Shareholder distributions were $0.6 billion in the third quarter of 2025, all of which was attributable to our regular dividend.
Previous wording
Available Credit Lines. Total Company committed credit lines, excluding Ford Credit, at June 30, 2025 were $19.3 billion, consisting of $13.5 billion of our corporate credit facility, $2.0 billion of our supplemental revolving credit facility, $2.5 billion of our 364-day revolving credit facility, and $1.3 billion of local credit facilities. At June 30, 2025, $1.0 billion of committed Company credit lines, excluding Ford Credit, was utilized under local credit facilities for our affiliates, and the full amount under each of our corporate, supplemental, and 364-day credit facilities was available.
Current wording
Available Credit Lines. Total Company committed credit lines, excluding Ford Credit, at September 30, 2025 were $23.6 billion, consisting of $13.5 billion of our corporate credit facility, $2.0 billion of our supplemental revolving credit facility, $2.5 billion of our 364-day revolving credit facility, $3.0 billion of our delayed draw term loan facility (as discussed below), and $2.6 billion of local credit facilities. At September 30, 2025, $2.4 billion of committed Company credit lines, excluding Ford Credit, was utilized under local credit facilities for our affiliates, and the full amount under each of our corporate, supplemental, 364-day, and delayed draw term loan credit facilities was available.
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Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
For example, we previously announced the cancellation of an all-electric three-row SUV program. The impact of that cancellation also resulted in changes to future technology and product launches. In addition to incurring expenses of $1.6 billion through the third quarter of 2025 related to these actions, we may incur additional expenses and cash expenditures of about $1.8 billion and will reflect those in the quarter they are incurred as a special item.
Current report — wording carried from elsewhere
These regulatory and market dynamics may continue to occur, which could have a substantial adverse impact on our results of operations and/or business, including our investments in supply, production capacity, and equity method investments.