Bulletin: Ford Motor Co.'s Third Quarter Results Reflect Persistent Margin Pressure And Reduced Ratings Headroom

NEW YORK (S&P Global Ratings) Oct. 29, 2024—S&P Global Ratings said today that Ford Motor Co.'s third-quarter results and guidance (total company EBIT for 2024 narrowed to low end of prior range) indicate somewhat lower ratings cushion against further potential underperformance through 2025. The company's recent results, including a year-over-year dip in EBIT margins at Ford Blue (internal combustion engine light vehicles) indicate slow progress on cost reduction. With potentially rising pricing headwinds across segments, we expect overall EBITDA margin improvement through 2025 to be limited. We forecast its S&P Global Ratings-adjusted EBITDA margin dips below 8% in 2024 before improving to marginally over 8% in 2025 and 2026, still roughly in line with the median for automaker peers at

...NEW YORK (S&P Global Ratings) Oct. 29, 2024--S&P Global Ratings said today that Ford Motor Co.'s third-quarter results and guidance (total company EBIT for 2024 narrowed to low end of prior range) indicate somewhat lower ratings cushion against further potential underperformance through 2025. The company's recent results, including a year-over-year dip in EBIT margins at Ford Blue (internal combustion engine light vehicles) indicate slow progress on cost reduction. With potentially rising pricing headwinds across segments, we expect overall EBITDA margin improvement through 2025 to be limited. We forecast its S&P Global Ratings-adjusted EBITDA margin dips below 8% in 2024 before improving to marginally over 8% in 2025 and 2026, still roughly in line with the median for automaker peers at '###', '###-', and '##+' (see Tearsheet: Ford Motor Co.'s Robust Truck Earnings Steer It Through Choppy Cost Waters, published July 25, 2024). These forecasts reflect our expectation for further delays...

Bulletin