Jim Farley: 'Execution against our Ford+ plan allows us to break free from the low-margin, capital-intensive and cyclical attributes that have constrained auto valuations for a long time.'
— Jim Farley
03Detailed Report
F
Ford Motor Company
Period
Q2 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 18, 2026
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Executive Summary
In Q2 2024, Ford Motor Company reported revenues of $47.8 billion, reflecting a 6% increase year-over-year driven by strong demand for key products like the F-150 and Transit. Notably, adjusted EBIT reached $2.8 billion with a margin of 5.8%, despite challenges such as rising warranty costs and supply chain pressures. Management reaffirmed its commitment to transforming Ford into a high-margin business with significant growth potential in the electric vehicle (EV) market through its Ford+ strategy. The company anticipates continued free cash flow strength, raising guidance to a range of $7.5 billion to $8.5 billion for the year, providing a solid foundation for ongoing investments and dividend payouts, including a declared dividend of $0.15 per share.
Key Performance Indicators
Revenue
Increasing
47.81B
QoQ: 11.76% | YoY: 6.35%
Gross Profit
Decreasing
4.53B
9.47% margin
QoQ: 21.59% | YoY: -39.49%
Operating Income
Decreasing
1.76B
QoQ: 39.29% | YoY: -28.69%
Net Income
Decreasing
1.83B
QoQ: 37.46% | YoY: -4.49%
EPS
Decreasing
0.46
QoQ: 39.39% | YoY: -4.17%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue Performance: $47.8 billion (YoY growth of 6%, QoQ growth of 12%). Operating Income: $1.75 billion, reflecting operating margin of 5.8%. Net Income: $1.83 billion, a decline of 4.5% YoY due to increased warranty reserves and higher manufacturing costs. Earnings Per Share (EPS): $0.46, down from $0.48 YoY. Free Cash Flow: $3.2 billion for the quarter, increasing guidance for full year to $7.5-$8.5 billion. Liquidity: Strong balance sheet with approximately $27 billion in cash and $45 billion in liquidity, which offers flexibility to navigate a dynamic environment.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
47.81B
6.35%
11.76%
Gross Profit
4.53B
-39.49%
21.59%
Operating Income
1.76B
-28.69%
39.29%
Net Income
1.83B
-4.49%
37.46%
EPS
0.46
-4.17%
39.39%
Key Financial Ratios
Gross Profit Margin
Weak
9.47%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Weak
3.67%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Fair
3.83%
Net profit margin is moderate, room for improvement in cost management
Return on Assets
Weak
0.66%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
4.20%
Return on equity suggests inefficient capital allocation
Current Ratio
Adequate
1.17
Current ratio meets minimum requirements but limited cushion
Debt to Equity
High Risk
3.51
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Value
6.94x
P/E ratio suggests potential undervaluation or stable earnings
Price to Book
Fair Value
1.17x
Price-to-book ratio reasonable for profitable companies
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