Driving the news: Ford $F ( 0.0% ) beat third-quarter earnings expectations but slashed its 2025 guidance after a fire at aluminum supplier Novelis disrupted production of its most profitable trucks and SUVs.
For context: Ford's third-quarter revenue hit a record $50.5 billion, up 9% year-over-year, with net income rising to $2.4 billion. But the company lowered 2025 guidance to $6 billion to $6.5 billion in adjusted EBIT, down from $6.5 billion to $7.5 billion. However, CFO Sherry House said without the fire, Ford was planning to raise guidance to over $8 billion.
The details: The fire last month at Novelis' New York plant is expected to cost Ford $1.5 billion to $2 billion, though the automaker expects to mitigate much of that by ramping production once supplies stabilize.
Ford will experience F-150 production disruptions at Dearborn Truck Plant over the next few weeks. Production of the F-150 Lightning has already stopped.
The automaker plans to add 1,000 workers early next year at Michigan and Kentucky plants to recoup about half of the 100,000 units it expects to lose this year.
The damaged section of the Novelis plant is expected to restart in late November or early December.
Looking ahead: Excluding the impact of the recent plant fire, Ford’s performance remained stable, and the automaker now anticipates reduced exposure to tariffs, following the Trump administration’s decision to extend relief measures on imported auto parts.
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