FORD MOTOR CO
For the period ended Sep 30, 2026. Filed Oct 29, 2026.
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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, 2026 · Filed Oct 29, 2026
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 2026-06-30; filed 2026-07-29.
0000037996-26-000156
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-10-29.
0000037996-26-000191
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 256 previous paragraphs and 249 current paragraphs.
182 unchanged; 64 reworded; 2 added; 9 removed; 1 previous and 1 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 (2)
Current report
•Ford Credit EBT of about $2.8 billion
Current report
•Commodity headwinds approaching $2.5 billion as we continue to see increasing pressure from input costs
Removed paragraphs (9)
Previous report
Also as previously disclosed, in May 2026, Ford, SK On Co., Ltd., and SK Battery America, Inc., and BlueOval SK, LLC (“BOSK”) closed on the transactions contemplated by the Joint Venture Disposition Agreement (“JVDA”) the parties entered into in December 2025. In conjunction with the closing, our membership interest in BOSK was redeemed, we acquired from BOSK all of BOSK’s interests in two battery plants located in Kentucky, and we entered into a Loan Arrangement and Reimbursement Agreement with U.S. Department of Energy (the “Ford DOE Loan Agreement”), pursuant to which we assumed from BOSK all of its obligations under its U.S. Department of Energy loan related to the single Kentucky plant for which advances were made.
Previous report
Upon closing of the transactions, we recognized pre-tax special item charges of $3.6 billion, which includes about $500 million of cash expenditures. For additional information about BOSK, the JVDA, and the Ford DOE Loan Agreement, see Notes 12 and 16 of the Notes to the Financial Statements.
Previous report
We recorded a $1,152 million benefit from tax special items in the second quarter of 2026, primarily reflecting the tax effect of pre-tax special item charges and a $273 million benefit from the recognition of a U.S. Qualified Opportunity Zone tax incentive.
Previous report
The sustainability-linked targets previously included in the corporate, supplemental, and 364-day credit agreements were removed as part of the April 2026 amendments and the applicable margin and facility fees under those facilities will no longer be adjusted based on whether Ford achieves, or fails to achieve, certain sustainability-linked targets.
Previous report
•Ford Credit EBT of above $2.5 billion
Previous report
•Commodity headwinds of just above $2.0 billion, largely due to higher aluminum pricing driven by global supply constraints. This excludes Novelis-related aluminum costs.
Previous report
•An incremental investment of about $1.0 billion in Model e to support the ramp of our Universal EV platform and Ford Energy
Previous report
•IEEPA cash recovery of about $0.5 billion in 2026
Previous report
(a) In the second quarter of 2025 and 2026, there were 45 million and 79 million shares, respectively, excluded from the calculation of diluted earnings/(loss) per share, due to their anti-dilutive effect.
Reworded paragraphs (64)
Previous wording
As of June 30, 2026, we expect to receive about $3 billion related to tariff reimbursements from the federal government and suppliers and as offsets to Company payment obligations to suppliers. As previously disclosed, included in this amount is about $1.3 billion related to the International Emergency Economic Powers Act (“IEEPA”) and tariff rulings from the United States Supreme Court and the Court of International Trade in the first quarter of 2026.
Current wording
As of September 30, 2026, we expect to receive about $2.2 billion related to tariff reimbursements from the federal government and suppliers and as offsets to Company payment obligations to suppliers attributable to tariff actions taken by the U.S. government since March 2025.
Previous wording
Although we have started to receive reimbursements from the federal government (excluding IEEPA), the timing for our receipt of these reimbursements is uncertain and is subject to changes in trade policy. Despite this uncertainty, we currently expect to receive about $500 million of reimbursements related to IEEPA in the second half of 2026.
Current wording
Although we have started to receive reimbursements from the federal government, including about $500 million in the third quarter of 2026 related to the International Emergency Economic Powers Act (“IEEPA”) and tariff rulings from the United States Supreme Court and the Court of International Trade in the first quarter of 2026, the timing for our receipt of these reimbursements is uncertain and is subject to changes in trade policy.
Previous wording
As previously disclosed, in September 2025 and November 2025, fires at a Novelis Inc. plant in New York disrupted operations at the facility. Novelis is a major aluminum supplier to Ford, and since the initial fire occurred, we have been working closely with Novelis to address the situation and have temporarily sourced an alternative supply of aluminum. We have also sought mitigating actions to minimize potential disruptions to our operations. We experienced lower production subsequent to the Novelis fires in September and November 2025, and although the ultimate impact on Ford depends on a number of factors, in the second half of 2026, we expect to partially recover the production lost to date.
Current wording
As previously disclosed, in September 2025 and November 2025, fires at a Novelis Inc. plant in New York disrupted operations at the facility. Novelis is a major aluminum supplier to Ford, and since the initial fire occurred, we worked closely with Novelis to address the situation. We also sought mitigating actions to minimize disruptions to our operations, including temporarily sourcing an alternative supply of aluminum. Although the ultimate impact on Ford depends on a number of factors, in the third quarter of 2026, we began to partially recover the production we lost subsequent to the fires.
Previous wording
For more information regarding the impact and potential impact of the Novelis fires on our business, see the Outlook section on page 55 of this 10-Q Report.
Current wording
For more information regarding the impact of the Novelis fires on our business, see the Outlook section on page 55 of this 10-Q Report.
Previous wording
In December 2025, we announced our decision to rationalize our EV manufacturing capacity and product roadmap, including cancelling three previously planned EVs and ending production of the current generation F-150 Lightning EV. Related to the foregoing, in the second quarter of 2026, we recorded $481 million of charges to be paid in cash, primarily related to contractual commitments related to those programs. As previously disclosed, we may incur additional expenses and cash expenditures related to these actions, which we now expect to be up to $2 billion (on a pre-tax basis). We will recognize those charges in the quarter they are incurred as a special item.
Current wording
In December 2025, we announced our decision to rationalize our EV manufacturing capacity and product roadmap, including cancelling three previously planned EVs and ending production of the current generation F-150 Lightning EV. Related to the foregoing, in the third quarter of 2026, we recorded $175 million of charges to be paid in cash, primarily related to contractual commitments related to those programs. As previously disclosed, we may incur additional expenses and cash expenditures related to these actions, which we now expect to be about $500 million (on a pre-tax basis). We will recognize those charges in the quarter they are incurred as a special item.
Previous wording
In the second quarter of 2026, the net loss attributable to Ford Motor Company was $1,327 million, and Company adjusted EBIT was $2,503 million.
Current wording
In the third quarter of 2026, the net income attributable to Ford Motor Company was $2,049 million, and Company adjusted EBIT was $2,658 million.
Previous wording
We recorded $4,179 million of pre-tax special item charges in the second quarter of 2026, primarily reflecting charges we recognized upon the closing of the transactions contemplated by the BOSK JVDA and charges related to the EV program cancellations previously announced in December 2025.
Current wording
We recorded $127 million of pre-tax special item charges in the third quarter of 2026, primarily reflecting continued charges related to the EV program cancellations previously announced in December 2025, legal matter(s), and ongoing restructuring actions in Europe. Pension and OPEB remeasurement was a partial offset.
Previous wording
During the third quarter of 2026, we anticipate recognizing a tax benefit of up to $200 million, resulting from legal entity restructuring of our South American operations. The benefit is expected to be treated as a special item.
Current wording
We recorded a $198 million benefit from tax special items in the third quarter of 2026, primarily reflecting a $179 million benefit resulting from legal entity restructuring of our South American operations.
Previous wording
In Note 18 of the Notes to the Financial Statements, special items are reflected as a separate reconciling item, as opposed to being allocated among our segments. This reflects the fact that management excludes these items from its review of operating segment results for purpose of measuring segment profitability and allocating resources.
Current wording
In Note 18 of the Notes to the Financial Statements, special items are reflected as a separate reconciling item, as opposed to being allocated among our segments. This reflects the fact that management excludes these items from its review of operating segment results for purposes of measuring segment profitability and allocating resources.
Previous wording
The table below shows our second quarter and first half 2026 key metrics for the Company, compared to a year ago.
Current wording
The table below shows our third quarter and first nine months of 2026 key metrics for the Company, compared to a year ago.
Previous wording
In the second quarter of 2026, our diluted earnings/(loss) per share of Common and Class B Stock was a loss of $0.33, and our diluted adjusted earnings per share was $0.42.
Current wording
In the third quarter of 2026, our diluted earnings per share of Common and Class B Stock was $0.50, and our diluted adjusted earnings per share was $0.49.
Previous wording
Net income/(loss) margin was negative 2.7% in the second quarter of 2026, down 2.7 percentage points from a year ago. Company adjusted EBIT margin was 5.2% in the second quarter of 2026, up 0.9 percentage points from a year ago.
Current wording
Net income/(loss) margin was 4.1% in the third quarter of 2026, down 0.7 percentage points from a year ago. Company adjusted EBIT margin was 5.4% in the third quarter of 2026, up 0.3 percentage points from a year ago.
Previous wording
The table below shows the details of our second quarter and first half 2026 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 of 2026 net income/(loss) attributable to Ford and Company adjusted EBIT (in millions).
Previous wording
The year-over-year decrease of $1,291 million in net income is primarily explained by higher special item charges, as described on page 36, offset partially by lower taxes. The year-over-year increase of $363 million in Company adjusted EBIT in the second quarter of 2026 primarily reflects higher Ford Blue and Model e EBIT and improved Ford Credit EBT, offset partially by lower Ford Pro EBIT.
Current wording
The year-over-year decrease of $398 million in net income is primarily explained by higher taxes (including lower benefits from tax special items), offset partially by lower special item charges, as described on page 36. The year-over-year increase of $72 million in Company adjusted EBIT in the third quarter of 2026 primarily reflects improved Model e EBIT and Ford Credit EBT, offset partially by lower Ford Pro EBIT and Ford Blue EBIT.
Previous wording
The tables below and on the following pages provide second quarter and first half 2026 key metrics and the change in second quarter 2026 EBIT compared with second quarter 2025 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.
Current wording
The tables below and on the following pages provide third quarter and first nine months of 2026 key metrics and the change in third quarter 2026 EBIT compared with third quarter 2025 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 97,000 units in Q2 2025 and 82,000 units in Q2 2026).
Current wording
(a)Includes Ford and Lincoln brand and JMC brand vehicles produced and sold in China by our unconsolidated affiliates (about 90,000 units in Q3 2025 and 70,000 units in Q3 2026).
Previous wording
In the second quarter of 2026, Ford Blue’s wholesales decreased 8% from a year ago, primarily reflecting the end of production of the Escape in North America and Focus in Europe and the impact of the Middle East conflict, offset partially by higher utility wholesales, including Expedition, Explorer, and Bronco. Second quarter 2026 revenue increased 1%, driven by favorable mix, exchange, and net pricing, offset partially by lower wholesales.
Current wording
In the third quarter of 2026, Ford Blue’s wholesales decreased 10% from a year ago, primarily reflecting the end of production of the Escape and Corsair in North America and Focus in Europe as well as, to a lesser extent, the impact of the Middle East conflict within the region. Third quarter 2026 revenue decreased 3%, driven by lower wholesales, offset partially by favorable mix and exchange.
Previous wording
Ford Blue’s second quarter 2026 EBIT was $1,135 million, an increase of $474 million from a year ago, with an EBIT margin of 4.4%. The higher EBIT primarily reflects improved market factors, favorable exchange, lower regulatory compliance expense, and higher parts and accessories profit, offset partially by higher cost. The improved market factors reflect favorable product mix and higher net pricing, offset partially by lower volume. The higher cost primarily reflects higher commodity prices and temporary sourcing costs associated with the disruption in aluminum supply, offset partially by lower tariffs (excluding temporary Novelis-related).
Current wording
Ford Blue’s third quarter 2026 EBIT was $1,392 million, a decrease of $148 million from a year ago, with an EBIT margin of 5.1%. The lower EBIT primarily reflects lower volume and higher cost, offset partially by favorable product mix and exchange and lower regulatory compliance expense. The higher cost is primarily driven by higher commodity prices and temporary sourcing costs (including related tariffs) associated with the disruption in Novelis aluminum supply, offset partially by lower tariffs (excluding temporary Novelis-related).
Previous wording
In the second quarter of 2026, Ford Model e’s wholesales decreased 53% from a year ago, primarily reflecting the right-sizing of Mustang Mach-E production to market demand and discontinuation of the F-150 Lightning. Second quarter 2026 revenue decreased 56%, driven by lower wholesales.
Current wording
In the third quarter of 2026, Ford Model e’s wholesales decreased 31% from a year ago, primarily reflecting discontinuation of the F-150 Lightning and the right-sizing of Mustang Mach-E production to market demand. Third quarter 2026 revenue decreased 31%, driven by lower wholesales and unfavorable mix, offset partially by favorable net pricing.
Previous wording
Ford Model e’s second quarter 2026 EBIT loss was $919 million, a $410 million improvement from a year ago, with an EBIT margin of negative 89.6%. The improved EBIT primarily reflects lower losses on Gen-1 products, including lower volume and a favorable one-time adjustment related to a multi-year supply agreement, offset partially by higher warranty expenses.
Current wording
Ford Model e’s third quarter 2026 EBIT loss was $1,058 million, a $352 million improvement from a year ago, with an EBIT margin of negative 86.5%. The improved EBIT primarily reflects lower losses on Gen-1 products, including lower volume and favorable net pricing, offset partially by higher investment cost on next generation products and Ford Energy.
Previous wording
(a)Includes Ford brand vehicles produced and sold by our unconsolidated affiliate Ford Otosan in Türkiye (about 21,000 units in Q2 2025 and 18,000 units in Q2 2026).
Current wording
(a)Includes Ford brand vehicles produced and sold by our unconsolidated affiliate Ford Otosan in Türkiye (about 23,000 units in Q3 2025 and 13,000 units in Q3 2026).
Previous wording
In the second quarter of 2026, Ford Pro’s wholesales decreased 13% from a year ago, primarily reflecting the end of production of the Escape in North America for fleet customers (including daily rental), lower wholesales as a result of the aluminum supply disruption, and lower Ranger wholesales in Europe. Second quarter 2026 revenue decreased 5%, reflecting lower wholesales, offset partially by favorable mix and exchange.
Current wording
In the third quarter of 2026, Ford Pro’s wholesales decreased 4% from a year ago, primarily reflecting the end of production of the Escape in North America for fleet customers (including daily rental) and lower Ranger and Transit wholesales. Higher Super Duty and F-150 wholesales were a partial offset, as we began to recover the lost production from the Novelis fires. Third quarter 2026 revenue increased 2%, primarily reflecting favorable product mix.
Previous wording
Ford Pro’s second quarter 2026 EBIT was $1,718 million, a decrease of $600 million from a year ago as we continue to recover from the temporary disruption in aluminum supply, with an EBIT margin of 9.7%. The lower EBIT was primarily driven by the lower volume, higher commodity prices, and temporary sourcing costs associated with the disruption in aluminum supply. Favorable mix and net pricing, lower tariffs (excluding temporary Novelis-related), lower regulatory compliance expense, and higher parts and accessories profit were partial offsets.
Current wording
Ford Pro’s third quarter 2026 EBIT was $1,665 million, a decrease of $320 million from a year ago, with an EBIT margin of 9.4%. The lower EBIT was driven by higher costs, primarily reflecting higher commodity prices, the Super Duty Oakville launch, and temporary sourcing costs (including related tariffs) associated with the disruption in Novelis aluminum supply, offset partially by lower tariffs (excluding temporary Novelis-related). Favorable product mix and lower regulatory compliance expense were partial offsets.
Previous wording
The tables below provide second quarter and first half 2026 key metrics and the change in second quarter 2026 EBT compared with second quarter 2025 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 2026 key metrics and the change in third quarter 2026 EBT compared with third quarter 2025 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 2026 mix and YTD amounts at YTD 2026 mix.
Current wording
(b)U.S. portfolio off-lease third quarter auction values at Q3 2026 mix and YTD amounts at YTD 2026 mix.
Previous wording
Ford Credit’s total net receivables of $143.2 billion were 0.3% lower than a year ago, explained primarily by lower non-consumer financing, exchange, and lower consumer financing, offset partially by a larger operating lease portfolio. The second quarter 2026 U.S. loss-to-receivables ratio of 52 basis points increased from a year ago, primarily reflecting higher repossessions and higher severities. U.S. auction values remain stable year over year.
Current wording
Ford Credit’s total net receivables of $146.1 billion were 0.3% higher than a year ago, explained primarily by a larger operating lease portfolio, offset partially by lower non-consumer and consumer financing and exchange. The third quarter 2026 U.S. loss-to-receivables ratio of 67 basis points increased from a year ago, primarily reflecting higher severities. U.S. auction values decreased year over year, reflecting an increase in industrywide used vehicle supply.
Previous wording
Ford Credit’s second quarter 2026 EBT of $757 million was $112 million higher than a year ago, explained primarily by improved financing margin, net favorable items included in Other, and higher volume and mix. Included in Other is the non-recurrence of a charge related to U.K. commissions redress, offset partially by a decrease in favorable derivative market valuation adjustments.
Current wording
Ford Credit’s third quarter 2026 EBT of $803 million was $172 million higher than a year ago, explained primarily by net favorable items included in Other and higher volume and mix, offset partially by higher credit losses in Europe. Included in Other is an increase in favorable derivative market valuation adjustments and the non-recurrence of a charge related to U.K. commissions redress.
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 realized and unrealized gains and losses on 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 2026, Corporate Other had a $188 million EBIT loss, compared to a $155 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 realized and unrealized gains and losses on 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 2026, Corporate Other had a $144 million EBIT loss, compared to a $160 million EBIT loss a year ago.
Previous wording
Interest on Debt, which consists of interest expense on Company debt excluding Ford Credit, was $357 million in the second quarter of 2026, $60 million higher than a year ago, which includes the impact of our assumption of the DOE loan from BOSK.
Current wording
Interest on Debt, which consists of interest expense on Company debt excluding Ford Credit, was $385 million in the third quarter of 2026, $64 million higher than a year ago, which includes the impact of our assumption of the DOE loan from BOSK in the second quarter of 2026.
Previous wording
Our Provision for/(Benefit from) income taxes for the second quarter and first half of 2026 was a benefit of $711 million and $350 million, respectively, resulting in an effective tax rate of 35.0% for the second quarter and negative 39.8% for the first half. These rates were driven by a benefit of $273 million in the second quarter resulting from the recognition of a U.S. Qualified Opportunity Zone tax incentive, which was treated as a special item. The first half rate was also driven by a benefit resulting from a tax law change in the United Kingdom.
Current wording
Our Provision for/(Benefit from) income taxes for the third quarter and first nine months of 2026 was a provision of $97 million and a benefit of $253 million, respectively, resulting in an effective tax rate of 4.5% for the third quarter and negative 8.4% for the first nine months. These rates were driven by a benefit of $179 million in the third quarter resulting from legal entity restructuring of our South American operations, which was treated as a special item. The first nine months rate was also driven by a benefit resulting from the recognition of a U.S. Qualified Opportunity Zone tax incentive, which was treated as a special item, and a tax law change in the United Kingdom.
Previous wording
Our second quarter and first half 2026 adjusted effective tax rates, which exclude special items, were 20.5% and 16.6%, respectively.
Current wording
Our third quarter and first nine months 2026 adjusted effective tax rates, which exclude special items, were 13.0% and 15.5%, respectively.
Previous wording
At June 30, 2026, total cash, cash equivalents, marketable securities, and restricted cash, including Ford Credit and entities held for sale, was $31.6 billion.
Current wording
At September 30, 2026, total cash, cash equivalents, marketable securities, and restricted cash, including Ford Credit and entities held for sale, was $34.4 billion.
Previous wording
(a)June 30, 2026 includes assumption of the DOE loan from BOSK.
Current wording
(a)September 30, 2026 includes assumption of the DOE loan from BOSK in the second quarter of 2026.
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, 2026, we had Company cash of $22.3 billion and liquidity of $43.4 billion. At June 30, 2026, about 86% 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, 2026, we had Company cash of $25.3 billion and liquidity of $46.4 billion. At September 30, 2026, about 85% of Company cash was held by consolidated entities domiciled in the United States.
Previous wording
Subject to approval by our Board of Directors, shareholder distributions in the form of dividend payments and/or a share repurchase program (including share repurchases to offset the anti-dilutive effect of increased share-based compensation) may require the expenditure of a material amount of cash. We generally target shareholder distributions of 40% to 50% of adjusted free cash flow. Moreover, we may be subject to additional material cash requirements that are contingent upon the occurrence of certain events, e.g., legal contingencies, uncertain tax positions, and other matters.
Current wording
Subject to approval by our Board of Directors, shareholder distributions in the form of dividend payments and/or a share repurchase program (including share repurchases to offset the dilutive effect of increased share-based compensation) may require the expenditure of a material amount of cash. We generally target shareholder distributions of 40% to 50% of adjusted free cash flow. Moreover, we may be subject to additional material cash requirements that are contingent upon the occurrence of certain events, e.g., legal contingencies, uncertain tax positions, and other matters.
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 our 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, 2026, our estimated expenditures for the maximum quantity that we are committed to purchase under these offtake agreements through 2035, subject to certain conditions, total approximately $6.4 billion 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 our 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, 2026, our estimated expenditures for the maximum quantity that we are committed to purchase under these offtake agreements through 2035, subject to certain conditions, total approximately $6.2 billion 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
As market conditions dictate, we have entered, and may in the future enter, into additional offtake agreements with raw material suppliers or renegotiate existing agreements. For additional discussion of the risks related to our offtake agreements and other long-term purchase contracts, see Item 1A. Risk Factors in our 2025 Form 10-K Report.
Current wording
As market conditions dictate, we may enter into additional offtake agreements with raw material suppliers or renegotiate existing agreements. For additional discussion of the risks related to our offtake agreements and other long-term purchase contracts, see Item 1A. Risk Factors in our 2025 Form 10-K Report.
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, 2026, the outstanding amount of Ford receivables that suppliers elected to sell to the SCF financial institutions was $68 million. The amount settled through the SCF program during the first half of 2026 was $491 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, 2026, the outstanding amount of Ford receivables that suppliers elected to sell to the SCF financial institutions was $84 million. The amount settled through the SCF program during the first nine months of 2026 was $636 million.
Previous wording
Our second quarter 2026 Net cash provided by/(used in) operating activities was $4.3 billion, $2.0 billion lower than a year ago (see page 61 for additional information). The decrease primarily reflects lower net income and lower Ford Credit operating cash flows, offset partially by higher working capital. Company adjusted free cash flow was $2.1 billion, $0.7 billion lower than a year ago, primarily driven by unfavorable timing differences and higher net spending and tax and interest payments. Higher Ford Credit distributions, working capital, and Company adjusted EBIT excluding Ford Credit were partial offsets.
Current wording
Our third quarter 2026 Net cash provided by/(used in) operating activities was $5.4 billion, $2.0 billion lower than a year ago (see page 61 for additional information). The decrease primarily reflects lower Ford Credit operating cash flow. Company adjusted free cash flow was $4.7 billion, $0.4 billion higher than a year ago, primarily driven by higher Ford Credit distributions and favorable timing differences and working capital, offset partially by higher net spending, tax payments, and interest payments as well as lower Company adjusted EBIT excluding Ford Credit.
Previous wording
Capital spending was $2.4 billion in the second quarter of 2026, an increase of $0.3 billion from a year ago. We continue to expect full year 2026 capital spending to be in the range of $9.5 billion to $10.5 billion.
Current wording
Capital spending was $2.3 billion in the third quarter of 2026, an increase of $0.2 billion from a year ago. We continue to expect full year 2026 capital spending to be in the range of $9.5 billion to $10.5 billion.
Showing the first 40 of 64 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
(b)First nine months of 2026 primarily reflects cash payments related to the EV program cancellations previously announced in December 2025.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Our delayed draw term loan facility was also amended as of April 15, 2026 to extend the available draw period for the $3.0 billion of commitments to December 31, 2026. Any unused commitments shall automatically terminate after December 31, 2026, and any loans drawn under the facility will mature on December 31, 2028.