Ford F remains focused on strengthening Ford Blue's profitability, supported by its strong truck and SUV portfolio, improved product mix and cost-reduction initiatives. Following its third-quarter 2026 results, the automaker maintained its full-year Ford Blue EBIT target of approximately $5.5 billion, indicating confidence.
Ford Blue reported third-quarter EBIT of $1.39 billion, down 9.6% year over year, while revenues declined 3.4% to $27.08 billion. Wholesale volumes fell 10% to 657,000 units, reflecting the planned phase-out of the Escape and Corsair in North America and Focus in Europe, along with the impact of the Middle East conflict. Consequently, EBIT margin contracted to 5.1% from 5.5% a year ago.
However, the nine-month performance provides a stronger foundation for the annual target. Ford Blue generated $4.47 billion in EBIT through September 2026, up approximately 95% year over year, while revenues increased 3% to $77.01 billion. Its EBIT margin improved to 5.8% from 3.1% in the prior-year period, reflecting stronger profitability during the first half. With approximately $1.03 billion in fourth-quarter EBIT required, the segment needs to deliver less than its third-quarter contribution of $1.39 billion to meet its annual target.
Ford's Strong Truck and SUV Portfolio Supports Earnings
Ford's established truck and SUV franchises continue to support its product mix and pricing. F-Series retained its position as America's best-selling truck, while Super Duty production reached its highest quarterly level in 19 years. Higher-margin off-road models, including Bronco, Raptor and Tremor, accounted for approximately 24% of Ford's sales through September. Moreover, Ford's U.S. retail market share, excluding the planned phase-out of Escape and Corsair, increased approximately 0.4 percentage points year over year to 12.1% in the third quarter.
F also raised the lower end of its full-year adjusted EBIT guidance to $10.5-$11 billion from $10-$11 billion. Overall, stronger nine-month profitability, a favorable truck and SUV mix and ongoing cost savings support the segment's outlook. Although lower wholesale volumes and commodity costs remain concerns, the fourth-quarter EBIT requirement appears manageable, keeping Ford Blue on course to achieve its 2026 target.
Competitive Landscape: General Motors & Stellantis
The strength of traditional vehicle operations is also evident across Ford's peers. General Motors GM benefited from improved profitability in its North American operations, with GM North America EBIT-adjusted increasing 43.4% year over year to $3.59 billion in the third quarter of 2026. General Motors' EBIT-adjusted margin expanded 2.5 percentage points to 8.7%, reflecting stronger operating performance in its core vehicle business.
Stellantis N.V. STLA also made progress in restoring profitability in North America. The segment reported adjusted operating income of €64 million in the third quarter of 2026 against an adjusted operating loss of €475 million a year ago. Improved net pricing and industrial cost savings, supported by Stellantis' Value Creation Program, helped drive the turnaround despite lower shipment volumes.
The Zacks Rundown for Ford
Shares of F have plunged 6.1% in a year compared with its industry’s 1.9% decline.
Ford is currently trading at a forward 12-month price-to-sales of 0.28X, lower than the industry’s average of 3.57X. It carries a Value Score of A.
The Zacks Consensus Estimate for F for 2026 earnings implies year-over-year growth of 74.3%.
The consensus estimate for EPS for fiscal 2026 has moved northward over the past 60 days.
F currently carries a Zacks Rank of #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This innovative software-as-a-service firm upped its user base +22% year over year. That rate is increasing and margins are expanding as AI efficiencies take effect. Of course, all our elite picks aren't winners, but this one could far surpass earlier Zacks' Stocks Set to Double like D-Wave Quantum, which shot up +680.1%.
Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ford Motor Company (F): Free Stock Analysis Report
General Motors Company (GM): Free Stock Analysis Report
Stellantis N.V. (STLA): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).