Program and guest
A Bloomberg Television Open Interest interview with Ford Chief Financial Officer Sherry House. Original English title: Ford CFO on Earnings, AI, Gas Prices, Going Off-Road. Subtitles cover the full video (8:42); this article covers the entire segment.
Key points
(The following paraphrases the guest’s intended meaning; timestamp links lead to the corresponding points in the original video.)
- The third quarter was another solid quarter: adjusted earnings before interest and taxes rose 3% to $2.7 billion, accompanied by $4.7 billion in free cash flow. This was achieved despite a 9% year-over-year decline in sales volume and a $600 million commodity headwind. 1:23
- The company is leaning into high-margin trucks, SUVs and vans: the F-Series is on track to be America’s best-selling truck for the 50th consecutive year. Ford was also the best-selling brand in the three-row SUV segment in the third quarter and remains the largest commercial vehicle brand in the United States. Parts and software services set a quarterly record and now account for 10% of revenue. 1:44
- Driven by these results, the company raised the lower end of its full-year adjusted earnings before interest and taxes guidance, which now stands at $10.5 billion to $11 billion. 2:26
- Looking ahead to 2027, commodity and chip prices and logistics could create approximately $2 billion in headwinds. The company does not expect commodity pressures to ease soon, but plans to sustain its momentum in material and warranty cost savings for a third consecutive year while improving structural costs across the company. 4:05
- AI is helping with more than cost cutting: the company uses AI to better sense demand and is using new, more granular tools in its parts business and dealer inventory management. These have already translated into tangible revenue. 4:43
Background and notes
Subtitles cover the full video (8:42); this article covers the entire segment. The views and timestamps are paraphrased from the original subtitles, and each timestamp marks the start of the corresponding subtitle segment.