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Can Ford Blue Achieve Its $5.5 Billion EBIT Target in 2026?
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Key Takeaways
Ford Blue maintained its $5.5 billion 2026 EBIT target, backed by strong nine-month profitability.
F's Blue segment generated $4.47 billion in nine-month EBIT, up 95%, with margins improving to 5.8%.
F-Series leadership, Super Duty production and higher-margin models support Ford's favorable product mix.
Ford (F - Free Report) 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 - Free Report) 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 - Free Report) 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.
Image Source: Zacks Investment Research
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.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for F for 2026 earnings implies year-over-year growth of 74.3%.
Image Source: Zacks Investment Research
The consensus estimate for EPS for fiscal 2026 has moved northward over the past 60 days.
View the Zacks #1 Rank List
Image: Bigstock
Can Ford Blue Achieve Its $5.5 Billion EBIT Target in 2026?
Key Takeaways
Ford (F - Free Report) 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 - Free Report) 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 - Free Report) 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.