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Jun 30, 2023
Ford Q2 2023 Earnings Report
Ford Pro and Ford Blue drove solid results, leading the company to raise expectations for full-year profitability.
Key Takeaways
Ford's Q2 2023 results showed a 12% increase in revenue to $45 billion, with net income rising to $1.9 billion and adjusted EBIT reaching $3.8 billion. Strong performance from Ford Pro and Ford Blue segments drove profitability, leading to raised full-year guidance for adjusted EBIT and free cash flow. The company is strategically investing in EVs and digital experiences while adapting to market adoption rates.
Revenue increased 12% year-over-year to $45 billion; net income ($1.9 billion) and adjusted EBIT ($3.8 billion) were also higher.
Ford Pro's appeal to commercial customers resulted in 22% revenue growth, with EBIT more than doubling to $2.4 billion and a 15% margin.
Ford Blue's gas and hybrid business reported higher wholesales and revenue, with $2.3 billion in EBIT.
Ford Model e revenue increased 39%, with plans to reach a 600,000-unit EV production run rate in 2024.
Revenue by Segment
Forward Guidance
Ford is lifting its guidance range for full-year 2023 consolidated adjusted EBIT to between $11 billion and $12 billion. Likewise, the company is raising its expectations for full-year adjusted free cash flow to between $6.5 billion and $7 billion, with capital expenditures of between $8 billion and $9 billion.
Positive Outlook
- Improved supply chain
- Higher industry volumes
- Upside from the all-new Super Duty
- Lower commodity costs
- Significant year-over- year improvement in pricing and volume for Ford Pro
Challenges Ahead
- Global economic uncertainty
- Inflationary pressures
- Higher industrywide customer incentives
- Continued EV pricing pressure
- Increased warranty costs
Historical Earnings Impact
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Avg. Return Before/After Earnings
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