Ford Credit's Net Income Jumps 56% on Strong Financing Revenue

TL;DR

**Ford Credit is crushing it, with net income up over 50% – a clear buy signal for Ford's financial health.**

AI Summary

Ford Motor Credit Company LLC reported a significant increase in net income for the first nine months of 2025, reaching $1,533 million, up from $982 million in the same period of 2024, representing a 56.1% increase. Third-quarter 2025 net income also rose to $566 million from $493 million in Q3 2024, a 14.8% increase. Total financing revenue for the first nine months of 2025 increased to $10,270 million from $9,522 million in 2024, driven by higher operating lease revenue ($3,552 million vs. $3,112 million) and retail financing revenue ($4,620 million vs. $4,113 million). Net financing margin for the first nine months of 2025 surged to $3,085 million, a 48.6% increase from $2,076 million in 2024, despite a rise in operating expenses to $1,259 million from $1,022 million. The provision for credit losses increased to $389 million for the first nine months of 2025, up from $282 million in 2024, indicating a potential increase in credit risk. Total assets grew to $161,334 million as of September 30, 2025, from $158,292 million at December 31, 2024, primarily due to an increase in net investment in operating leases to $24,979 million. Total debt also increased to $140,165 million from $137,868 million over the same period.

Why It Matters

Ford Credit's robust financial performance, marked by a 56.1% surge in net income, signals strong demand for Ford vehicles and effective financing strategies, which is positive for Ford Motor Company's overall ecosystem. For investors, this indicates a healthy underlying automotive market and potentially stable dividend payouts from Ford Credit to its parent. Employees benefit from a stable and growing financial services arm, while customers gain access to competitive financing options. In a competitive landscape, Ford Credit's ability to grow its financing revenue and net margin, despite rising operating expenses and credit loss provisions, demonstrates its resilience and market position against other captive finance companies and traditional lenders.

Risk Assessment

Risk Level: medium — The provision for credit losses increased by 37.9% to $389 million for the first nine months of 2025, up from $282 million in 2024, and consumer receivables 31-60 days past due increased to $803 million at September 30, 2025, from $872 million at December 31, 2024. While net income is strong, this rise in credit loss provisions and past-due accounts suggests a potential weakening in credit quality, which could impact future profitability.

Analyst Insight

Investors should monitor Ford Credit's credit loss trends closely in upcoming quarters, as the increase in provision for credit losses and past-due consumer receivables could signal future headwinds. While current performance is strong, a sustained increase in credit losses could erode profitability. Consider this a positive indicator for Ford's core business, but with a watchful eye on credit quality metrics.

Financial Highlights

revenue

$10,270M

total Assets

$161,334M

total Debt

$140,165M

net Income

$1,533M

cash Position

$8,764M

revenue Growth

+7.9%

Revenue Breakdown

Key Numbers

• $1.53B — Net Income (Increased 56.1% for the first nine months of 2025 compared to 2024.)
• $10.27B — Total Financing Revenue (Increased from $9.52 billion in 2024 to $10.27 billion in 2025 for the first nine months.)
• $3.08B — Net Financing Margin (Increased 48.6% for the first nine months of 2025 compared to 2024.)
• $389M — Provision for Credit Losses (Increased 37.9% for the first nine months of 2025 compared to 2024.)
• $161.33B — Total Assets (Increased from $158.29 billion at December 31, 2024, to $161.33 billion at September 30, 2025.)
• $140.17B — Total Debt (Increased from $137.87 billion at December 31, 2024, to $140.17 billion at September 30, 2025.)
• 14.8% — Q3 Net Income Growth (Net income grew from $493 million in Q3 2024 to $566 million in Q3 2025.)
• $803M — Consumer Receivables 31-60 Days Past Due (Represents 1.0% of the consumer portfolio at September 30, 2025.)

Key Players & Entities

• Ford Motor Credit Company LLC (company) — registrant
• Ford Motor Company (company) — parent company
• New York Stock Exchange (regulator) — exchange for registered securities
• Financial Accounting Standards Board (regulator) — issuer of accounting standards
• $1,533 million (dollar_amount) — net income for first nine months of 2025
• $982 million (dollar_amount) — net income for first nine months of 2024
• $10,270 million (dollar_amount) — total financing revenue for first nine months of 2025
• $3,085 million (dollar_amount) — net financing margin for first nine months of 2025
• $389 million (dollar_amount) — provision for credit losses for first nine months of 2025
• $161,334 million (dollar_amount) — total assets as of September 30, 2025

FAQ

Risk Factors

• Increased Provision for Credit Losses [medium — financial]: The provision for credit losses increased to $389 million for the first nine months of 2025, up from $282 million in the same period of 2024, a 37.9% increase. This indicates a potential rise in credit risk within the company's loan portfolio.
• Rising Debt Levels [medium — financial]: Total debt increased to $140,165 million as of September 30, 2025, from $137,868 million at December 31, 2024. While assets also grew, the increase in debt requires careful monitoring of leverage ratios and interest expense.
• Concentration in Financing Receivables [high — financial]: Finance receivables, net, represent a significant portion of assets ($120,713 million as of September 30, 2025). Any deterioration in the credit quality of these receivables could materially impact financial performance.
• Interest Rate Sensitivity [medium — market]: As a finance company, Ford Credit is exposed to interest rate fluctuations. Changes in interest rates can affect the cost of funding and the profitability of financing operations, as seen in the interest expense fluctuations.
• Operating Lease Depreciation [medium — operational]: Depreciation on vehicles subject to operating leases was $1,834 million for the first nine months of 2025. Management of residual values and depreciation schedules is crucial for profitability in this segment.

Industry Context

Ford Motor Credit Company operates within the automotive financing sector, a critical component of the broader automotive industry. The sector is characterized by intense competition from captive finance arms of other automakers, independent finance companies, and banks. Key trends include evolving consumer preferences towards leasing, the impact of economic cycles on credit demand and risk, and the increasing role of technology in loan origination and servicing.

Regulatory Implications

As a financial services provider, Ford Credit is subject to various regulations, including those related to consumer protection, fair lending practices, and capital adequacy. Changes in regulatory requirements, such as those concerning data privacy or credit reporting, could impact operational costs and compliance efforts.

What Investors Should Do

1. Monitor the trend in the provision for credit losses.
2. Analyze the growth drivers of financing revenue.
3. Evaluate the company's leverage and debt management.
4. Assess the impact of rising operating expenses.

Key Dates

• 2025-09-30: End of Third Quarter and First Nine Months 2025 — Reporting period for the presented financial results, showing significant net income growth and revenue increases.
• 2024-12-31: End of Fiscal Year 2024 — Prior period balance sheet data for comparison of asset and debt growth.
• 2024-09-30: End of Third Quarter and First Nine Months 2024 — Prior period financial results for comparison of income statement performance.

Glossary

Net financing margin

The difference between total financing revenue and interest expense, representing the core profitability of the company's financing operations. (A key indicator of profitability for financial institutions, showing a significant increase of 48.6% for the first nine months of 2025.)

Provision for credit losses

An expense set aside to cover potential losses from loans or receivables that may not be repaid by borrowers. (An increase to $389 million for the first nine months of 2025 suggests rising concerns about borrower creditworthiness.)

Net investment in operating leases

The net book value of assets leased to customers under operating lease agreements, including the cost of the asset less accumulated depreciation. (This component of assets grew to $24,979 million, indicating an expansion in the company's leasing business.)

Finance receivables, net

The total amount of money owed to the company from financing activities (like retail installment contracts and dealer financing), net of any allowance for uncollectible amounts. (This is the largest asset category, totaling $120,713 million, and is central to the company's business model.)

Variable Interest Entities (VIEs)

Entities for which the equity is not sufficient to finance the entity's activities or where the equity investors do not have the characteristics of a voting interest. The primary beneficiary consolidates the VIE. (Ford Credit consolidates VIEs, meaning their assets and liabilities are included in the company's consolidated financial statements.)

Year-Over-Year Comparison

Compared to the prior year's nine-month period, Ford Motor Credit Company has demonstrated robust performance. Total financing revenue increased by 7.9% to $10,270 million, driven by strong growth in operating leases and retail financing. Net income saw a substantial surge of 56.1%, reaching $1,533 million. However, this positive trend is accompanied by a notable increase in the provision for credit losses, up 37.9% to $389 million, and a rise in operating expenses by 23.2% to $1,259 million, suggesting potential headwinds in credit risk and operational efficiency that warrant investor attention.

Filing Documents

• fmcc-20250930.htm (10-Q) — 1670KB
• fmcc09302025ex311.htm (EX-31.1) — 10KB
• fmcc09302025ex312.htm (EX-31.2) — 10KB
• fmcc09302025ex321.htm (EX-32.1) — 5KB
• fmcc09302025ex322.htm (EX-32.2) — 6KB
• 0000038009-25-000038.txt ( ) — 8423KB
• fmcc-20250930.xsd (EX-101.SCH) — 47KB
• fmcc-20250930_cal.xml (EX-101.CAL) — 82KB
• fmcc-20250930_def.xml (EX-101.DEF) — 234KB
• fmcc-20250930_lab.xml (EX-101.LAB) — 557KB
• fmcc-20250930_pre.xml (EX-101.PRE) — 391KB
• fmcc-20250930_htm.xml (XML) — 1745KB

Financial Information

Part I. Financial Information Item 1

Financial Statements

Financial Statements 1 Consolidated Income Statements 1 Consolidated Statements of Comprehensive Income 1 Consolidated Balance Sheets 2 Consolidated Statements of Shareholder's Interest 3 Consolidated Statements of Cash Flows 4 Notes to the Financial Statements 5 Item 2

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 24 Recent Developments 24 Definitions and Information Regarding Causal Factors 26 Taxes 27 Results of Operations 28 Financing Shares and Contract Placement Volume 30 Financial Condition 31 Credit Risk 32 Residual Risk 34 Credit Ratings 35 Funding and Liquidity 36 Leverage 39 Cautionary Note on Forward-Looking Statements 40 Accounting Standards Issued But Not Yet Adopted 41 Item 3

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 41 Item 4

Controls and Procedures

Controls and Procedures 41

Other Information

Part II. Other Information Item 1

Legal Proceedings

Legal Proceedings 42 Item 5 Other Information 42 Item 6 Exhibits 42 Signature 43 i

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

ITEM 1. Financial Statements. FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENTS (in millions) For the periods ended September 30, 2024 2025 2024 2025 Third Quarter First Nine Months (unaudited) Financing revenue Operating leases $ 1,065 $ 1,245 $ 3,112 $ 3,552 Retail financing 1,458 1,571 4,113 4,620 Dealer financing 724 642 2,170 1,972 Other financing 44 43 127 126 Total financing revenue 3,291 3,501 9,522 10,270 Depreciation on vehicles subject to operating leases ( 600 ) ( 626 ) ( 1,823 ) ( 1,834 ) Interest expense ( 1,878 ) ( 1,802 ) ( 5,623 ) ( 5,351 ) Net financing margin 813 1,073 2,076 3,085 Other revenue Insurance premiums earned 42 40 120 130 Fee based revenue and other 30 30 110 77 Total financing margin and other revenue 885 1,143 2,306 3,292 Expenses Operating expenses 336 463 1,022 1,259 Provision for credit losses (Note 4) 99 135 282 389 Insurance expenses 17 22 144 86 Total expenses 452 620 1,448 1,734 Other income/(loss), net (Note 10) 111 108 355 298 Income before income taxes 544 631 1,213 1,856 Provision for/(Benefit from) income taxes 51 65 231 323 Net income $ 493 $ 566 $ 982 $ 1,533 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 $ 493 $ 566 $ 982 $ 1,533 Other comprehensive income/(loss), net of tax Foreign currency translation gains/(losses) 222 ( 43 ) 49 470 Reclassification of accumulated foreign currency translation (gains)/losses to net income ( 64 ) — ( 65 ) 7 Comprehensive income/(loss) $ 651 $ 523 $ 966 $ 2,010 The accompanying notes are part of the consolidated financial statements. 1

Financial Statements (Continued)

Item 1. Financial Statements (Continued) FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in millions) December 31, 2024 September 30, 2025 (unaudited) ASSETS Cash and cash equivalents (Note 3) $ 9,272 $ 8,764 Marketable securities (Note 3) 706 753 Finance receivables, net Retail installment contracts, dealer financing, and other financing 114,069 111,962 Finance leases 7,881 8,751 Total finance receivables, net of allowance for credit losses of $ 864 and $ 897 (Note 4) 121,950 120,713 Net investment in operating leases (Note 5) 21,689 24,979 Notes and accounts receivable from affiliated companies 836 882 Derivative financial instruments (Note 7) 784 1,597 Other assets (Note 8) 3,055 3,646 Total assets $ 158,292 $ 161,334 LIABILITIES Accounts payable Customer deposits, dealer reserves, and other $ 961 $ 915 Affiliated companies 723 808 Total accounts payable 1,684 1,723 Debt (Note 9) 137,868 140,165 Deferred income taxes 364 629 Derivative financial instruments (Note 7) 1,992 1,072 Other liabilities and deferred revenue (Note 8) 2,627 3,028 Total liabilities 144,535 146,617 SHAREHOLDER'S INTEREST Shareholder's interest 5,166 5,166 Accumulated other comprehensive income/(loss) ( 1,217 ) ( 740 ) Retained earnings 9,808 10,291 Total shareholder's interest 13,757 14,717 Total liabilities and shareholder's interest $ 158,292 $ 161,334 The following table includes assets to be used to settle the liabilities of the consolidated variable interest entities ("VIEs"). These assets and liabilities are included in our consolidated balance sheets above. See Note 6 for additional information on our VIEs. December 31, 2024 September 30, 2025 (unaudited) ASSETS Cash and cash equivalents $ 2,494 $ 2,492 Finance receivables, net 60,717 59,314 Net investment in operating leases 13,309 12,538 Derivative financial instruments 34 14 LIABILITIES Debt $ 50,855 $ 48,225 Derivative financial instruments 100 81 Th

Financial Statements (Continued)

Item 1. Financial Statements (Continued) FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREHOLDER'S INTEREST (in millions, unaudited) Shareholder's Interest Attributable to Ford Motor Credit Company Shareholder's Interest Accumulated Other Comprehensive Income/(Loss) Retained Earnings Total Shareholder's Interest Balance at December 31, 2023 $ 5,166 $ ( 829 ) $ 9,052 $ 13,389 Net income — — 234 234 Other comprehensive income/(loss), net of tax — ( 120 ) — ( 120 ) Balance at March 31, 2024 5,166 ( 949 ) 9,286 13,503 Net income — — 255 255 Other comprehensive income/(loss), net of tax — ( 54 ) — ( 54 ) Distributions declared — — ( 150 ) ( 150 ) Balance at June 30, 2024 5,166 ( 1,003 ) 9,391 13,554 Net income / (loss) — — 493 493 Other comprehensive income/(loss), net of tax — 158 — 158 Distributions declared — — ( 175 ) ( 175 ) Balance at September 30, 2024 $ 5,166 $ ( 845 ) $ 9,709 $ 14,030 Balance at December 31, 2024 $ 5,166 $ ( 1,217 ) $ 9,808 $ 13,757 Net income — — 424 424 Other comprehensive income/(loss), net of tax — 149 — 149 Distributions declared — — ( 200 ) ( 200 ) Balance at March 31, 2025 5,166 ( 1,068 ) 10,032 14,130 Net income — — 543 543 Other comprehensive income/(loss), net of tax — 371 — 371 Distributions declared — — ( 500 ) ( 500 ) Balance at June 30, 2025 5,166 ( 697 ) 10,075 14,544 Net income / (loss) — — 566 566 Other comprehensive income/(loss), net of tax — ( 43 ) — ( 43 ) Distributions declared — — ( 350 ) ( 350 ) Balance at September 30, 2025 $ 5,166 $ ( 740 ) $ 10,291 $ 14,717 The accompanying notes are part of the consolidated financial statements. 3

Financial Statements (Continued)

Item 1. Financial Statements (Continued) FORD MOTOR CREDIT COMPANY LLC 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 $ 982 $ 1,533 Provision for credit losses 282 389 Depreciation and amortization 2,291 2,350 Amortization of upfront interest supplements ( 1,746 ) ( 1,932 ) Net change in deferred income taxes 28 247 Net change in other assets ( 365 ) ( 136 ) Net change in other liabilities 365 318 All other operating activities 195 130 Net cash provided by/(used in) operating activities 2,032 2,899 Cash flows from investing activities Purchases of finance receivables ( 32,952 ) ( 27,913 ) Principal collections of finance receivables 28,629 30,282 Purchases of operating lease vehicles ( 8,533 ) ( 10,282 ) Proceeds from termination of operating lease vehicles 5,669 5,017 Net change in wholesale receivables and other short-duration receivables ( 2,770 ) 2,635 Purchases of marketable securities and other investments ( 168 ) ( 313 ) Proceeds from sales and maturities of marketable securities and other investments 249 292 Settlements of derivatives ( 401 ) ( 450 ) All other investing activities ( 61 ) ( 88 ) Net cash provided by/(used in) investing activities ( 10,338 ) ( 820 ) Cash flows from financing activities Proceeds from issuances of long-term debt 43,473 35,607 Payments of long-term debt ( 35,453 ) ( 36,576 ) Net change in short-term debt ( 1,520 ) ( 716 ) Cash distributions to parent ( 325 ) ( 1,050 ) All other financing activities ( 117 ) ( 82 ) Net cash provided by/(used in) financing activities 6,058 ( 2,817 ) Effect of exchange rate changes on cash, cash equivalents, and restricted cash 32 249 Net increase/(decrease) in cash, cash equivalents and restricted cash $ ( 2,216 ) $ ( 489 ) Cash, cash equivalents, and restricted cash at beginning of period (Note 3) $ 10,795 $ 9,

Financial Statements (Continued)

Item 1. Financial Statements (Continued) FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS Table of Contents Footnote Page Note 1 Presentation 6 Note 2 Accounting Policies 6 Note 3 Cash, Cash Equivalents, and Marketable Securities 7 Note 4 Finance Receivables and Allowance for Credit Losses 8 Note 5 Net Investment in Operating Leases 12 Note 6 Transfers of Receivables and Variable Interest Entities 13 Note 7 Derivative Financial Instruments and Hedging Activities 16 Note 8 Other Assets and Other Liabilities and Deferred Revenue 18 Note 9 Debt 19 Note 10 Other Income/(Loss) 20 Note 11 Segment Information 20 Note 12 Commitments and Contingencies 22 5

Financial Statements (Continued)

Item 1. Financial Statements (Continued) FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS NOTE 1. PRESENTATION Principles of Consolidation For purposes of this report, "Ford Credit," the "Company," "we," "our," "us," or similar references mean Ford Motor Credit Company LLC, our consolidated subsidiaries, and our consolidated VIEs of which we are the primary beneficiary, unless the context requires otherwise. We are an indirect, wholly owned subsidiary of Ford Motor Company ("Ford"). 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 period 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. ACCOUNTING POLICIES 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 disclo

Financial Statements (Continued)

Item 1. Financial Statements (Continued) FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS NOTE 3. CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES The following table categorizes the fair values of cash, cash equivalents, and marketable securities measured at fair value on a recurring basis on our consolidated balance sheets as follows (in millions): Fair Value Level December 31, 2024 September 30, 2025 Cash and cash equivalents United States government 1 $ 854 $ 162 United States government agencies 2 400 — Non-United States government and agencies 2 370 818 Corporate debt 2 339 882 Total marketable securities classified as cash equivalents 1,963 1,862 Cash, time deposits, and money market funds 7,309 6,902 Total cash and cash equivalents $ 9,272 $ 8,764 Marketable securities United States government 1 $ 185 $ 242 United States government agencies 2 — — Non-United States government and agencies 2 79 90 Corporate debt 2 252 250 Other marketable securities 2 190 171 Total marketable securities $ 706 $ 753 Cash, Cash Equivalents, and Restricted Cash Cash, cash equivalents, and restricted cash, as reported in our consolidated statements of cash flows are presented separately on our consolidated balance sheets as follows (in millions): December 31, 2024 September 30, 2025 Cash and cash equivalents $ 9,272 $ 8,764 Restricted cash (a) 88 107 Total cash, cash equivalents, and restricted cash $ 9,360 $ 8,871 __________ (a) Restricted cash is included in Other assets on our consolidated balance sheets and is primarily held to meet certain local governmental and regulatory reserve requirements and cash held under the terms of certain contractual agreements. Restricted cash does not include required minimum balances or cash securing debt issued through securitization transactions. 7

Financial Statements (Continued)

Item 1. Financial Statements (Continued) FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS NOTE 4. FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES We manage finance receivables as "consumer" and "non-consumer" portfolios. The receivables are generally secured by the vehicles, inventory, or other property being financed. Finance receivables are recorded at the time of origination or purchase at fair value and are subsequently reported at amortized cost, net of any allowance for credit losses. For all finance receivables, we define "past due" as any payment, including principal and interest, that is at least 31 days past the contractual due date. Total Finance Receivables, Net Total finance receivables, net were as follows (in millions): December 31, 2024 September 30, 2025 Consumer Retail installment contracts, gross $ 79,573 $ 79,004 Finance leases, gross 8,357 9,287 Retail financing, gross 87,930 88,291 Unearned interest supplements from Ford and affiliated companies ( 4,598 ) ( 4,333 ) Consumer finance receivables 83,332 83,958 Non-Consumer Dealer financing 37,384 35,525 Other financing 2,098 2,127 Non-Consumer finance receivables 39,482 37,652 Total recorded investment $ 122,814 $ 121,610 Recorded investment in finance receivables $ 122,814 $ 121,610 Allowance for credit losses ( 864 ) ( 897 ) Total finance receivables, net $ 121,950 $ 120,713 Net finance receivables subject to fair value (a) $ 114,069 $ 111,962 Fair value (b) 113,545 112,853 __________ (a) Net finance receivables subject to fair value exclude finance leases. (b) The fair value of finance receivables is categorized within Level 3 of the fair value hierarchy. Finance leases are comprised of sales-type and direct financing leases. Financing revenue from finance leases for the third quarter of 2024 and 2025 was $ 137 million and $ 146 million, respectively, and for the first nine months of 2024 and 2025 was $ 376 million an

Financial Statements (Continued)

Item 1. Financial Statements (Continued) FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS NOTE 4. FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES ( Continued ) Credit Quality Consumer Portfolio. Credit quality ratings for consumer receivables are based on aging. Receivables over 60 days past due are in intensified collection status. The credit quality analysis of consumer receivables at December 31, 2024 and gross charge-offs during the year ended December 31, 2024 were as follows (in millions): Amortized Cost Basis by Origination Year Prior to 2020 2020 2021 2022 2023 2024 Total Percent Consumer 31-60 days past due $ 43 $ 93 $ 104 $ 187 $ 242 $ 203 $ 872 1.0 % Greater than 60 days past due 15 27 35 57 82 59 275 0.4 Total past due 58 120 139 244 324 262 1,147 1.4 Current 788 3,162 5,465 12,298 24,189 36,283 82,185 98.6 Total $ 846 $ 3,282 $ 5,604 $ 12,542 $ 24,513 $ 36,545 $ 83,332 100.0 % Gross charge-offs $ 46 $ 58 $ 71 $ 152 $ 191 $ 50 $ 568 The credit quality analysis of consumer receivables at September 30, 2025 and gross charge-offs during the first nine months of 2025 were as follows (in millions): Amortized Cost Basis by Origination Year Prior to 2021 2021 2022 2023 2024 2025 Total Percent Consumer 31-60 days past due $ 67 $ 67 $ 136 $ 201 $ 237 $ 95 $ 803 1.0 % Greater than 60 days past due 23 25 48 67 77 41 281 0.3 Total past due 90 92 184 268 314 136 1,084 1.3 Current 1,629 2,881 7,644 17,439 29,412 23,869 82,874 98.7 Total $ 1,719 $ 2,973 $ 7,828 $ 17,707 $ 29,726 $ 24,005 $ 83,958 100.0 % Gross charge-offs $ 44 $ 43 $ 96 $ 142 $ 148 $ 17 $ 490 Non-Consumer Portfolio. The credit quality of dealer financing receivables is evaluated based on our internal dealer risk rating analysis. We use a proprietary model to assign each dealer a risk rating. This model uses historical dealer performance data to identify key factors about a dealer that we consider most significant in predicting a dea

Financial Statements (Continued)

Item 1. Financial Statements (Continued) FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS NOTE 4. FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES ( Continued ) The credit quality analysis of dealer financing receivables at December 31, 2024 and gross charge-offs during the year ended December 31, 2024 were as follows (in millions): Amortized Cost Basis by Origination Year Dealer Loans Prior to 2020 2020 2021 2022 2023 2024 Total Wholesale Loans Total Percent Group I $ 270 $ 63 $ 97 $ 47 $ 231 $ 245 $ 953 $ 33,345 $ 34,298 91.7 % Group II 13 — 3 1 28 31 76 2,494 2,570 6.9 Group III — — 2 — 1 4 7 462 469 1.3 Group IV — — — — — 1 1 46 47 0.1 Total (a) $ 283 $ 63 $ 102 $ 48 $ 260 $ 281 $ 1,037 $ 36,347 $ 37,384 100.0 % Gross charge-offs $ 1 $ — $ — $ — $ — $ — $ 1 $ 6 $ 7 __________ (a) Total past due dealer financing receivables at December 31, 2024 were $ 8 million. The credit quality analysis of dealer financing receivables at September 30, 2025 and gross charge-offs during the first nine months of 2025 were as follows (in millions): Amortized Cost Basis by Origination Year Dealer Loans Prior to 2021 2021 2022 2023 2024 2025 Total Wholesale Loans Total Percent Group I $ 295 $ 70 $ 33 $ 171 $ 82 $ 169 $ 820 $ 30,457 $ 31,277 88.1 % Group II 26 8 3 34 47 34 152 3,519 3,671 10.3 Group III — — — 1 1 5 7 526 533 1.5 Group IV — — — — 1 5 6 38 44 0.1 Total (a) $ 321 $ 78 $ 36 $ 206 $ 131 $ 213 $ 985 $ 34,540 $ 35,525 100.0 % Gross charge-offs $ — $ — $ — $ 3 $ — $ — $ 3 $ 10 $ 13 __________ (a) Total past due dealer financing receivables at September 30, 2025 were $ 6 million. Non-Accrual of Revenue. The accrual of financing revenue is discontinued at the time a receivable is determined to be uncollectible or when it is 90 days past due. Accounts may be restored to accrual status only when a customer settles all past-due deficiency balances and future payments are reasonably assured. For receivables in

Financial Statements (Continued)

Item 1. Financial Statements (Continued) FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS NOTE 4. FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES ( Continued ) During the collection process, we may offer a term extension to a customer experiencing financial difficulty. During the extension period, finance charges continue to accrue. If the customer's financial difficulty is not temporary, but we believe the customer is willing and able to repay their loan at a lower payment amount, we may offer to modify the interest rate and/or extend the term in order to lower the scheduled monthly payment. In those cases, the outstanding balance generally remains unchanged. The use of interest rate modifications and term extensions helps us mitigate financial loss. Term extensions may assist in cases where we believe the customer will recover from short-term financial difficulty and resume regularly scheduled payments. Before offering an interest rate modification or term extension, we evaluate and take into account the capacity of the customer to meet the revised payment terms. Although the granting of an extension could delay the eventual charge-off of a receivable, we are typically able to repossess and sell the related collateral, thereby mitigating the loss. The effect of most loan modifications made to borrowers experiencing financial difficulty is included in the historical trends used to measure the allowance for credit losses. A loan modification that improves the delinquency status of a borrower reduces the probability of default, which results in a lower allowance for credit losses. At September 30, 2025, an insignificant portion of our total finance receivables portfolio had been granted a loan modification and these modifications are generally treated as a continuation of the existing loan . Allowance for Credit Losses The allowance for credit losses represents our estimate of the lifetime expected credit losses inherent

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