Ford's Q3 Net Income Surges 174% on Strong Revenue Growth

Ticker: F-PD · Form: 10-Q · Filed: Oct 24, 2025 · CIK: 37996

Sentiment: mixed

Topics: Automotive, Earnings, Revenue Growth, Net Income, Q3 2025, Financial Performance, Cash Flow

Related Tickers: F, GM, TSLA, STLA

TL;DR

**Ford's Q3 blowout is a green light, but don't ignore the year-to-date dip – it's a mixed bag, but the quarter looks strong.**

AI Summary

Ford Motor Company reported a significant increase in net income for the third quarter of 2025, reaching $2,447 million, up from $892 million in the third quarter of 2024, representing a 174% increase. Total revenues also grew by 9.4% to $50,534 million in Q3 2025 from $46,196 million in Q3 2024, driven by a 9.2% increase in vehicles, parts, and accessories revenue to $45,492 million. For the first nine months of 2025, net income attributable to Ford Motor Company decreased to $2,882 million from $4,055 million in the same period of 2024, a 28.9% decline. This nine-month decline was despite total revenues increasing to $141,377 million from $136,781 million, a 3.4% rise. Operating income for the third quarter of 2025 was $1,558 million, a substantial improvement from $880 million in Q3 2024, but the first nine months saw a decrease to $2,388 million from $3,988 million. The company also reported a benefit from income taxes of $630 million in Q3 2025, a significant shift from a provision of $27 million in Q3 2024. Cash and cash equivalents increased to $26,788 million as of September 30, 2025, from $22,935 million at December 31, 2024.

Why It Matters

Ford's impressive third-quarter net income surge of 174% to $2.45 billion signals strong operational improvements and potentially effective cost management, which could boost investor confidence. However, the year-to-date decline in net income by 28.9% to $2.88 billion suggests ongoing challenges or one-time gains impacting the quarterly results, requiring investors to scrutinize the sustainability of this Q3 performance. For employees, this could mean greater job security and potential for bonuses, while customers might see continued investment in new vehicle development. In the competitive automotive market, this strong quarter could allow Ford to better compete with rivals like General Motors and Tesla, especially in the transition to electric vehicles, by providing capital for strategic initiatives.

Risk Assessment

Risk Level: medium — While Q3 2025 net income surged by 174% to $2,447 million, the first nine months of 2025 show a 28.9% decrease in net income attributable to Ford Motor Company, falling to $2,882 million from $4,055 million in the prior year. This inconsistency, coupled with a significant negative equity in net income of affiliated companies of $(135) million for the first nine months of 2025 compared to $511 million in 2024, indicates potential underlying volatility and challenges in certain segments or investments.

Analyst Insight

Investors should consider the strong Q3 performance as a positive indicator of Ford's immediate operational efficiency and market demand, but remain cautious due to the year-to-date decline in net income. A deeper dive into the segment-specific performance (Ford Blue, Model e, Ford Pro, Ford Credit) is crucial to understand which areas are driving profitability and which are lagging. This mixed signal suggests a 'hold' position, awaiting further clarity on the sustainability of Q3's gains and the resolution of year-to-date underperformance.

Financial Highlights

debt To Equity
N/A
revenue
$50,534M
operating Margin
3.08%
total Assets
$300,990M
total Debt
$253,573M
net Income
$2,447M
eps
$0.61
gross Margin
N/A
cash Position
$26,788M
revenue Growth
+9.4%

Revenue Breakdown

SegmentRevenueGrowth
Company excluding Ford Credit$47,185M+9.5%
Ford Credit$3,349M+7.1%
Ford Blue SegmentNot explicitly broken out in provided text, but contributes to overall vehicle revenue.N/A
Ford Model e SegmentNot explicitly broken out in provided text, but contributes to overall vehicle revenue.N/A
Ford Pro SegmentNot explicitly broken out in provided text, but contributes to overall vehicle revenue.N/A

Key Numbers

Key Players & Entities

FAQ

What were Ford Motor Company's total revenues for the third quarter of 2025?

Ford Motor Company's total revenues for the third quarter of 2025 were $50,534 million, an increase from $46,196 million in the third quarter of 2024.

How did Ford's net income attributable to the company change in Q3 2025 compared to Q3 2024?

Net income attributable to Ford Motor Company increased significantly to $2,447 million in Q3 2025, up from $892 million in Q3 2024, representing a 174% increase.

What was Ford's basic earnings per share for the third quarter of 2025?

Ford's basic earnings per share for the third quarter of 2025 was $0.61, a substantial increase from $0.22 in the third quarter of 2024.

Did Ford's operating income improve in Q3 2025?

Yes, Ford's operating income improved to $1,558 million in Q3 2025, compared to $880 million in Q3 2024.

What was the change in Ford's cash and cash equivalents as of September 30, 2025?

Cash and cash equivalents increased to $26,788 million as of September 30, 2025, from $22,935 million at December 31, 2024.

How did Ford's income taxes impact its Q3 2025 results?

Ford reported a benefit from income taxes of $630 million in Q3 2025, a significant positive shift from a provision for income taxes of $27 million in Q3 2024.

What was the trend in Ford's net income for the first nine months of 2025?

For the first nine months of 2025, net income attributable to Ford Motor Company decreased to $2,882 million, down from $4,055 million in the same period of 2024.

How much revenue did Ford generate from vehicles, parts, and accessories in Q3 2025?

Ford generated $45,492 million in revenue from vehicles, parts, and accessories in Q3 2025, an increase from $41,665 million in Q3 2024.

What is Ford's outlook on unearned revenue from extended service contracts?

Ford expects to recognize approximately $500 million of unearned revenue from extended service contracts in the remainder of 2025, $1.8 billion in 2026, and $3.7 billion thereafter.

What new accounting standards will impact Ford's future disclosures?

Ford will adopt ASU 2023-09, Improvements to Income Tax Disclosures, for its 2025 annual financial statements, and ASU 2024-03, Disaggregation of Income Statement Expenses, for annual reporting periods beginning after December 15, 2026.

Risk Factors

Industry Context

The automotive industry is undergoing a significant transformation driven by electrification, autonomous driving technology, and evolving consumer preferences. Ford is navigating this shift by investing heavily in its Ford Model e division while maintaining its strong position in commercial vehicles with Ford Pro and traditional vehicles with Ford Blue. Competition remains fierce from both legacy automakers and new entrants, particularly in the EV space.

Regulatory Implications

Ford faces increasing regulatory scrutiny globally, particularly concerning emissions standards and safety regulations. The company must continue to invest in compliance and adapt its product lines to meet evolving environmental mandates, such as those related to CO2 emissions and the transition to zero-emission vehicles.

What Investors Should Do

  1. Monitor the profitability and cash flow generation of the Ford Model e segment.
  2. Analyze the trend in operating income for the first nine months of 2025.
  3. Assess the impact of the tax benefit in Q3 2025 on the full-year effective tax rate.
  4. Evaluate the growth and risk profile of Ford Credit.

Key Dates

Glossary

Ford Blue
Ford's business segment focused on traditional internal combustion engine vehicles and hybrid vehicles. (Contributes significantly to overall vehicle revenue and profitability.)
Ford Model e
Ford's business segment focused on developing and producing electric vehicles. (Represents Ford's strategic shift towards electrification and future growth potential.)
Ford Pro
Ford's business segment focused on commercial vehicles and services. (A key segment for revenue generation and customer loyalty in the commercial sector.)
Ford Credit
Ford's financial services arm, providing financing and leasing for vehicles. (Generates significant revenue and profit, but is also subject to credit and interest rate risks.)
Noncontrolling interests
The portion of equity in a subsidiary that is not attributable to the parent company (Ford Motor Company). (Indicates ownership stakes in consolidated entities that do not belong to Ford shareholders.)
Other comprehensive income/(loss)
Unrealized gains or losses on certain investments and foreign currency translation adjustments that are not included in net income. (Affects total equity and can represent significant unrealized value changes, such as the $1,821M gain from foreign currency translation in the first nine months of 2025.)
Provision for/(Benefit from) income taxes
The amount of income tax expense or tax benefit recognized in the income statement. (A significant shift from a $27M provision in Q3 2024 to a $630M benefit in Q3 2025 indicates a substantial change in tax expense or recognition.)

Year-Over-Year Comparison

Compared to the prior year's third quarter, Ford Motor Company demonstrated a robust recovery, with net income soaring by 174% to $2,447 million and total revenues growing 9.4% to $50,534 million. This strong quarterly performance contrasts with the first nine months of 2025, where net income attributable to Ford declined by 28.9% to $2,882 million, despite a 3.4% increase in total revenues to $141,377 million. Operating income saw a similar divergence, with a significant Q3 improvement but a year-to-date decrease. The company's cash position strengthened to $26,788 million from $22,935 million, indicating improved liquidity.

Filing Stats: 4,921 words · 20 min read · ~16 pages · Grade level 16.3 · Accepted 2025-10-23 19:12:04

Filing Documents

- Financial Information

Part I - Financial Information

Financial Statements 3

Item 1 Financial Statements 3 Consolidated Income Statements 3 Consolidated Statements of Comprehensive Income 3 Consolidated Balance Sheets 4 Consolidated Statements of Cash Flows 5 Consolidated Statements of Equity 6 Notes to the Financial Statements 7

Management's Discussion and Analysis of Financial Condition and Results of Operations 35

Item 2 Management's Discussion and Analysis of Financial Condition and Results of Operations 35 Recent Developments 35 Results of Operations 37 Ford Blue Segment 39 Ford Model e Segment 40 Ford Pro Segment 40 Ford Credit Segment 42 Corporate Other 45 Interest on Debt 45 Taxes 45 Liquidity and Capital Resources 46 Credit Ratings 55 Outlook 56 Cautionary Note on Forward-Looking Statements 57 Non-GAAP Financial Measures That Supplement GAAP Measures 59 Non-GAAP Financial Measure Reconciliations 61 Supplemental Information 63 Accounting Standards Issued But Not Yet Adopted 66

Quantitative and Qualitative Disclosures About Market Risk 67

Item 3 Quantitative and Qualitative Disclosures About Market Risk 67

Controls and Procedures 67

Item 4 Controls and Procedures 67

- Other Information

Part II - Other Information

Legal Proceedings 68

Item 1 Legal Proceedings 68

Other Information 69

Item 5 Other Information 69

Exhibits 70

Item 6 Exhibits 70 Signature 71

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

ITEM 1. Financial Statements. FORD MOTOR COMPANY AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENTS (in millions, except per share amounts) For the periods ended September 30, 2024 2025 2024 2025 Third Quarter First Nine Months (unaudited) Revenues Company excluding Ford Credit $ 43,069 $ 47,185 $ 127,770 $ 131,550 Ford Credit 3,127 3,349 9,011 9,827 Total revenues (Note 3) 46,196 50,534 136,781 141,377 Costs and expenses Cost of sales 40,168 43,411 117,133 122,844 Selling, administrative, and other expenses 2,456 2,740 7,510 7,877 Ford Credit interest, operating, and other expenses 2,692 2,825 8,150 8,268 Total costs and expenses 45,316 48,976 132,793 138,989 Operating income/(loss) 880 1,558 3,988 2,388 Interest expense on Company debt excluding Ford Credit 272 321 820 906 Other income/(loss), net (Note 4) 114 560 1,240 1,633 Equity in net income/(loss) of affiliated companies 147 21 511 ( 135 ) Income/(Loss) before income taxes 869 1,818 4,919 2,980 Provision for/(Benefit from) income taxes ( 27 ) ( 630 ) 856 88 Net income/(loss) 896 2,448 4,063 2,892 Less: Income/(Loss) attributable to noncontrolling interests 4 1 8 10 Net income/(loss) attributable to Ford Motor Company $ 892 $ 2,447 $ 4,055 $ 2,882 EARNINGS/(LOSS) PER SHARE ATTRIBUTABLE TO FORD MOTOR COMPANY COMMON AND CLASS B STOCK (Note 6) Basic income/(loss) $ 0.22 $ 0.61 $ 1.02 $ 0.72 Diluted income/(loss) 0.22 0.60 1.01 0.72 Weighted-average shares used in computation of earnings/(loss) per share Basic shares 3,976 3,983 3,980 3,977 Diluted shares 4,018 4,048 4,020 4,026 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) For the periods ended September 30, 2024 2025 2024 2025 Third Quarter First Nine Months (unaudited) Net income/(loss) $ 896 $ 2,448 $ 4,063 $ 2,892 Other comprehensive income/(loss), net of tax (Note 16) Foreign currency translation 431 28 ( 204 ) 1,821 Marketable securities 180 24 200 127 Derivative instruments ( 292 ) 291 ( 44 ) (

Financial Statements (continued)

Item 1. Financial Statements (continued) FORD MOTOR COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in millions) December 31, 2024 September 30, 2025 (unaudited) ASSETS Cash and cash equivalents (Note 7) $ 22,935 $ 26,788 Marketable securities (Note 7) 15,413 15,400 Ford Credit finance receivables, net of allowance for credit losses of $ 247 and $ 259 (Note 8) 51,850 48,214 Trade and other receivables, less allowances of $ 84 and $ 103 14,723 19,199 Inventories (Note 9) 14,951 16,509 Other assets 4,602 4,610 Total current assets 124,474 130,720 Ford Credit finance receivables, net of allowance for credit losses of $ 617 and $ 638 (Note 8) 59,786 60,147 Net investment in operating leases 22,947 27,045 Net property 41,928 44,735 Equity in net assets of affiliated companies 6,821 5,359 Deferred income taxes 16,375 18,196 Other assets 12,865 14,788 Total assets $ 285,196 $ 300,990 LIABILITIES Payables $ 24,128 $ 27,868 Other liabilities and deferred revenue (Note 10 and Note 18) 27,782 31,152 Debt payable within one year (Note 12) Company excluding Ford Credit 1,756 3,918 Ford Credit 53,193 53,710 Total current liabilities 106,859 116,648 Other liabilities and deferred revenue (Note 10 and Note 18) 28,832 30,961 Long-term debt (Note 12) Company excluding Ford Credit 18,898 17,857 Ford Credit 84,675 86,455 Deferred income taxes 1,074 1,652 Total liabilities 240,338 253,573 EQUITY Common Stock, par value $ 0.01 per share ( 4,132 million shares issued of 6 billion authorized) 41 41 Class B Stock, par value $ 0.01 per share ( 71 million shares issued of 530 million authorized) 1 1 Capital in excess of par value of stock 23,502 23,847 Retained earnings 33,740 34,186 Accumulated other comprehensive income/(loss) (Note 16) ( 9,639 ) ( 7,873 ) Treasury stock ( 2,810 ) ( 2,810 ) Total equity attributable to Ford Motor Company 44,835 47,392 Equity attributable to noncontrolling interests 23 25 Total equity 44,858 47,417

Financial Statements (Continued)

Item 1. Financial Statements (Continued) FORD MOTOR COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) For the periods ended September 30, 2024 2025 First Nine Months (unaudited) Cash flows from operating activities Net income/(loss) $ 4,063 $ 2,892 Depreciation and tooling amortization 5,636 5,722 Other amortization ( 1,219 ) ( 1,382 ) Provision for credit and insurance losses 433 477 Pension and other postretirement employee benefits ("OPEB") expense/(income) (Note 11) 689 277 Equity method investment (earnings)/losses and impairments in excess of dividends received ( 216 ) 312 Foreign currency adjustments 296 ( 2 ) Net realized and unrealized (gains)/losses on cash equivalents, marketable securities, and other investments (Note 4) 25 ( 63 ) Stock compensation 404 409 Provision for/(Benefit from) deferred income taxes ( 329 ) ( 521 ) Decrease/(Increase) in finance receivables (wholesale and other) ( 2,739 ) 2,605 Decrease/(Increase) in accounts receivable and other assets ( 2,046 ) ( 3,677 ) Decrease/(Increase) in inventory ( 2,338 ) ( 705 ) Increase/(Decrease) in accounts payable and accrued and other liabilities 9,386 10,631 Other 350 423 Net cash provided by/(used in) operating activities 12,395 17,398 Cash flows from investing activities Capital spending ( 6,186 ) ( 6,031 ) Acquisitions of finance receivables and operating leases ( 44,942 ) ( 40,033 ) Collections of finance receivables and operating leases 33,855 34,307 Purchases of marketable securities and other investments ( 8,501 ) ( 7,205 ) Sales and maturities of marketable securities and other investments 10,611 7,506 Settlements of derivatives ( 174 ) ( 341 ) Capital contributions to equity method investments ( 2,200 ) ( 442 ) Returns of capital from equity method investments (Note 17) 25 1,701 Other 3 150 Net cash provided by/(used in) investing activities ( 17,509 ) ( 10,388 ) Cash flows from financing activities Cash payments for d

Financial Statements (Continued)

Item 1. Financial Statements (Continued) FORD MOTOR COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EQUITY (in millions, unaudited) Equity Attributable to Ford Motor Company Capital Stock Cap. in Excess of Par Value of Stock Retained Earnings Accumulated Other Comprehensive Income/(Loss) (Note 16) Treasury Stock Total Equity Attributable to Non-controlling Interests Total Equity Balance at December 31, 2023 $ 42 $ 23,128 $ 31,029 $ ( 9,042 ) $ ( 2,384 ) $ 42,773 $ 25 $ 42,798 Net income/(loss) — — 1,332 — — 1,332 2 1,334 Other comprehensive income/(loss), net — — — 110 — 110 — 110 Common Stock issued (a) — ( 3 ) — — — ( 3 ) — ( 3 ) Treasury stock/other — — — — — — — — Dividends and dividend equivalents declared ($ 0.33 per share) (b) — — ( 1,342 ) — — ( 1,342 ) — ( 1,342 ) Balance at March 31, 2024 $ 42 $ 23,125 $ 31,019 $ ( 8,932 ) $ ( 2,384 ) $ 42,870 $ 27 $ 42,897 Net income/(loss) — — 1,831 — — 1,831 2 1,833 Other comprehensive income/(loss), net — — — ( 425 ) — ( 425 ) ( 1 ) ( 426 ) Common Stock issued (a) — 145 — — — 145 — 145 Treasury stock/other — — — — ( 244 ) ( 244 ) — ( 244 ) Dividends and dividend equivalents declared ($ 0.15 per share) (b) — — ( 610 ) — — ( 610 ) — ( 610 ) Balance at June 30, 2024 $ 42 $ 23,270 $ 32,240 $ ( 9,357 ) $ ( 2,628 ) $ 43,567 $ 28 $ 43,595 Net income/(loss) — — 892 — — 892 4 896 Other comprehensive income/(loss), net — — — 368 — 368 1 369 Common stock issued (a) — 127 — — — 127 — 127 Treasury stock/other — — — — ( 32 ) ( 32 ) ( 9 ) ( 41 ) Dividends and dividend equivalents declared ($ 0.15 per share) (b) — — ( 607 ) — — ( 607 ) — ( 607 ) Balance at September 30, 2024 $ 42 $ 23,397 $ 32,525 $ ( 8,989 ) $ ( 2,660 ) $ 44,315 $ 24 $ 44,339 Balance at December 31, 2024 $ 42 $ 23,502 $ 33,740 $ ( 9,639 ) $ ( 2,810 ) $ 44,835 $ 23 $ 44,858 Net income/(loss) — — 471 — — 471 2 473 Other comprehensive income/(loss), net — — — 481 — 481 — 481 Common Stock issued (a) — 60 — — — 60 — 60 Treasury

Financial Statements (Continued)

Item 1. Financial Statements (Continued) FORD MOTOR COMPANY AND SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS Table of Contents Footnote Page Note 1 Presentation 8 Note 2 New Accounting Standards 8 Note 3 Revenue 9 Note 4 Other Income/(Loss) 11 Note 5 Income Taxes 11 Note 6 Capital Stock and Earnings/(Loss) Per Share 11 Note 7 Cash, Cash Equivalents, and Marketable Securities 12 Note 8 Ford Credit Finance Receivables and Allowance for Credit Losses 14 Note 9 Inventories 18 Note 10 Other Liabilities and Deferred Revenue 18 Note 11 Retirement Benefits 19 Note 12 Debt 20 Note 13 Derivative Financial Instruments and Hedging Activities 21 Note 14 Employee Separation Actions and Exit and Disposal Activities 23 Note 15 Acquisitions and Divestitures 23 Note 16 Accumulated Other Comprehensive Income/(Loss) 24 Note 17 Variable Interest Entities 25 Note 18 Commitments and Contingencies 26 Note 19 Segment Information 29 7

Financial Statements (Continued)

Item 1. Financial Statements (Continued) FORD MOTOR COMPANY AND SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS NOTE 1. PRESENTATION For purposes of this report, "Ford," the "Company," "we," "our," "us," or similar references mean Ford Motor Company, our consolidated subsidiaries, and our consolidated VIEs of which we are the primary beneficiary, unless the context requires otherwise. We also make reference to Ford Motor Credit Company LLC, herein referenced to as Ford Credit. Our consolidated financial statements are presented in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information, instructions to the Quarterly Report on Form 10-Q, and Rule 10-01 of Regulation S-X. We reclassified certain prior year amounts in our consolidated financial statements to conform to the current year presentation. In the opinion of management, these unaudited financial statements include all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of our results of operations and financial condition for the periods, and at the dates, presented. The results for interim periods are not necessarily indicative of results that may be expected for any other interim period or for the full year. Reference should be made to the financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2024 ("2024 Form 10-K Report"). NOTE 2. NEW ACCOUNTING STANDARDS Adoption of New Accounting Standards Accounting Standards Updates ("ASUs") adopted during 2025 did not have a material impact to our consolidated financial statements or financial statement disclosures. Accounting Standards Issued But Not Yet Adopted ASU 2023-09, Improvements to Income Tax Disclosures. In December 2023, the Financial Accounting Standards Board ("FASB") issued a new accounting standard to enhance the transparency and decision usefulness of income tax disclosures. The new standard is effective

Financial Statements (Continued)

Item 1. Financial Statements (Continued) FORD MOTOR COMPANY AND SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS NOTE 3. REVENUE The following tables disaggregate our revenue by major source for the periods ended September 30 (in millions): Third Quarter 2024 Company excluding Ford Credit Ford Credit Consolidated Vehicles, parts, and accessories $ 41,665 $ — $ 41,665 Used vehicles 532 — 532 Services and other revenue (a) 818 23 841 Revenues from sales and services 43,015 23 43,038 Leasing income 54 1,065 1,119 Financing income — 2,002 2,002 Insurance income — 37 37 Total revenues $ 43,069 $ 3,127 $ 46,196 Third Quarter 2025 Company excluding Ford Credit Ford Credit Consolidated Vehicles, parts, and accessories $ 45,492 $ — $ 45,492 Used vehicles 687 — 687 Services and other revenue (a) 902 24 926 Revenues from sales and services 47,081 24 47,105 Leasing income 104 1,245 1,349 Financing income — 2,040 2,040 Insurance income — 40 40 Total revenues $ 47,185 $ 3,349 $ 50,534 First Nine Months 2024 Company excluding Ford Credit Ford Credit Consolidated Vehicles, parts, and accessories $ 123,852 $ — $ 123,852 Used vehicles 1,531 — 1,531 Services and other revenue (a) 2,232 85 2,317 Revenues from sales and services 127,615 85 127,700 Leasing income 155 3,112 3,267 Financing income — 5,710 5,710 Insurance income — 104 104 Total revenues $ 127,770 $ 9,011 $ 136,781 First Nine Months 2025 Company excluding Ford Credit Ford Credit Consolidated Vehicles, parts, and accessories $ 126,561 $ — $ 126,561 Used vehicles 2,152 — 2,152 Services and other revenue (a) 2,589 61 2,650 Revenues from sales and services 131,302 61 131,363 Leasing income 248 3,552 3,800 Financing income — 6,094 6,094 Insurance income — 120 120 Total revenues $ 131,550 $ 9,827 $ 141,377 __________ (a) Includes extended service contract revenue. 9

Financial Statements (Continued)

Item 1. Financial Statements (Continued) FORD MOTOR COMPANY AND SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS NOTE 3. REVENUE (Continued) The amount of consideration we receive and revenue we recognize on our vehicles, parts, and accessories varies with changes in return rights, marketing incentives we offer to our customers and their customers, and other pricing adjustments. Estimates of marketing incentives and other pricing adjustments are based on our expectation of retail and fleet sales volumes, mix of products to be sold, competitor actions, and incentive programs to be offered. Customer acceptance of products and programs, as well as other market conditions, will impact these estimates. As a result of changes in our estimate of variable consideration (e.g., marketing incentives), we recorded a decrease in revenue of $ 329 million in the third quarter of 2024 and an increase in revenue of $ 163 million in the third quarter of 2025 related to revenue recognized in prior periods. We had a balance of $ 5.3 billion and $ 6.0 billion of unearned revenue associated primarily with outstanding extended service contracts reported in Other liabilities and deferred revenue at December 31, 2024 and September 30, 2025, respectively . We expect to recognize approximately $ 500 million of the unearned amount in the remainder of 2025, $ 1.8 billion in 2026, and $ 3.7 billion thereafter. We recognized $ 472 million and $ 525 million of unearned amounts from prior years as revenue during the third quarter of 2024 and 2025, respectively, and $ 1.3 billion and $ 1.5 billion in the first nine months of 2024 and 2025, respectively. Amounts paid to dealers to obtain extended service contracts are deferred and recorded as Other assets . Our deferred cost balances were $ 312 million and $ 314 million as of December 31, 2024 and September 30, 2025, respectively. We recognized $ 26 million and $ 27 million of amortization during the third quarter of 2024 and 2025, respectiv

Financial Statements (Continued)

Item 1. Financial Statements (Continued) FORD MOTOR COMPANY AND SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS NOTE 4. OTHER INCOME/(LOSS) The amounts included in Other income/(loss), net for the periods ended September 30 were as follows (in millions): Third Quarter First Nine Months 2024 2025 2024 2025 Net periodic pension and OPEB income/(cost), excluding service cost (Note 11) $ ( 347 ) $ 19 $ ( 266 ) $ 44 Investment-related interest income 367 379 1,144 1,098 Interest income/(expense) on income taxes ( 1 ) ( 7 ) ( 24 ) ( 23 ) Realized and unrealized gains/(losses) on cash equivalents, marketable securities, and other investments ( 17 ) 20 ( 25 ) 63 Gains/(Losses) on changes in investments in affiliates 66 — 90 8 Royalty income 123 121 360 335 Other ( 77 ) 28 ( 39 ) 108 Total $ 114 $ 560 $ 1,240 $ 1,633 NOTE 5. INCOME TAXES For interim tax reporting, we estimate one single effective tax rate for tax jurisdictions not subject to a valuation allowance, which is applied to the year-to-date ordinary income/(loss). Tax effects of significant unusual or infrequently occurring items are excluded from the estimated annual effective tax rate calculation and recognized in the interim period in which they occur. Our Provision for/(Benefit from) income taxes for the third quarter and first nine months of 2025 was a benefit of $ 630 million and a provision of $ 88 million, respectively. This resulted in an effective tax rate of negative 34.7 % for the third quarter and 3.0 % for the first nine months. During the third quarter, these rates were impacted by a net benefit of $ 1.4 billion associated with the release of a valuation allowance resulting from improvements in our South American operations. The third quarter and first nine months rates were also impacted by a non-cash charge of $ 424 million to deferred tax assets to recognize the impact of tax legislation enacted in Germany during the quarter. In addition, the nine-month rate was impacted b

Financial Statements (Continued)

Item 1. Financial Statements (Continued) FORD MOTOR COMPANY AND SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS NOTE 7. CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES The fair values of cash, cash equivalents, and marketable securities measured at fair value on a recurring basis were as follows (in millions): December 31, 2024 Fair Value Level Company excluding Ford Credit Ford Credit Consolidated Cash and cash equivalents U.S. government 1 $ 1,099 $ 854 $ 1,953 U.S. government agencies 2 2,529 400 2,929 Non-U.S. government and agencies 2 1,073 370 1,443 Corporate debt 2 659 339 998 Total marketable securities classified as cash equivalents 5,360 1,963 7,323 Cash, time deposits, and money market funds 8,303 7,309 15,612 Total cash and cash equivalents $ 13,663 $ 9,272 $ 22,935 Marketable securities U.S. government 1 $ 3,530 $ 185 $ 3,715 U.S. government agencies 2 1,691 — 1,691 Non-U.S. government and agencies 2 2,272 79 2,351 Corporate debt 2 6,676 252 6,928 Equities 1 22 — 22 Other marketable securities 2 516 190 706 Total marketable securities $ 14,707 $ 706 $ 15,413 Restricted cash $ 120 $ 88 $ 208 Cash, cash equivalents, and restricted cash - held for sale (Note 15) $ 47 $ — $ 47 September 30, 2025 Fair Value Level Company excluding Ford Credit Ford Credit Consolidated Cash and cash equivalents U.S. government 1 $ 1,424 $ 162 $ 1,586 U.S. government agencies 2 1,809 — 1,809 Non-U.S. government and agencies 2 4,877 818 5,695 Corporate debt 2 1,066 882 1,948 Total marketable securities classified as cash equivalents 9,176 1,862 11,038 Cash, time deposits, and money market funds 8,848 6,902 15,750 Total cash and cash equivalents $ 18,024 $ 8,764 $ 26,788 Marketable securities U.S. government 1 $ 3,680 $ 242 $ 3,922 U.S. government agencies 2 1,458 — 1,458 Non-U.S. government and agencies 2 2,230 90 2,320 Corporate debt 2 6,847 250 7,097 Equities 1 — — — Other marketable securities 2 432 171 603 Total marketabl

Financial Statements (Continued)

Item 1. Financial Statements (Continued) FORD MOTOR COMPANY AND SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS NOTE 7. CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES (Continued) The cash equivalents and marketable securities accounted for as available-for-sale ("AFS") securities were as follows (in millions): December 31, 2024 Fair Value of Securities with Contractual Maturities Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Within 1 Year After 1 Year through 5 Years After 5 Years Company excluding Ford Credit U.S. government $ 3,476 $ 1 $ ( 27 ) $ 3,450 $ 282 $ 3,168 $ — U.S. government agencies 1,755 1 ( 30 ) 1,726 697 1,010 19 Non-U.S. government and agencies 2,039 1 ( 39 ) 2,001 559 1,429 13 Corporate debt 7,295 35 ( 21 ) 7,309 2,272 5,033 4 Other marketable securities 486 3 ( 1 ) 488 — 411 77 Total $ 15,051 $ 41 $ ( 118 ) $ 14,974 $ 3,810 $ 11,051 $ 113 September 30, 2025 Fair Value of Securities with Contractual Maturities Amortize

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