Ford Motor Company (F) Q2 2024: F

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

47.81B

QoQ: 11.76% | YoY:6.35%

Gross Profit

4.53B

9.47% margin

QoQ: 21.59% | YoY:-39.49%

Operating Income

1.76B

QoQ: 39.29% | YoY:-28.69%

Net Income

1.83B

QoQ: 37.46% | YoY:-4.49%

EPS

0.46

QoQ: 39.39% | YoY:-4.17%

Revenue Trend

Margin Analysis

Key Insights

**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 billi...

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

currentRatio

1.17

grossProfitMargin

9.47%

operatingProfitMargin

3.67%

netProfitMargin

3.83%

returnOnAssets

0.66%

returnOnEquity

4.2%

debtEquityRatio

3.51

operatingCashFlowPerShare

$1.38

freeCashFlowPerShare

$0.86

dividendPayoutRatio

32.7%

priceToBookRatio

1.17

priceEarningsRatio

6.94

Net Income vs. Revenue

Expense Breakdown

Competitive Position

Company	Gross Margin	Operating Margin	Return on Equity	P/E Ratio
F Focus	9.47%	3.67%	4.20%	6.94%
RIVN	-45.10%	-1.19%	-21.40%	-2.39%
TM	21.30%	10.10%	1.67%	14.80%
LCID	-1.35%	-3.93%	-15.40%	-2.37%
XPEV	14.00%	-19.80%	-3.78%	-5.05%

Period	Revenue ($M)	EPS ($)	YoY Growth	Report
Q4 2024	48,211.00	0.45	+4.9%	View
Q3 2024	46,196.00	0.22	+5.5%	View
Q2 2024	47,808.00	0.46	+6.4%	View
Q1 2024	42,777.00	0.33	+3.1%	View
Q4 2023	45,962.00	-0.13	+4.5%	View

Ford Motor Company (F) Q2 2024 Earnings Report

Earnings Highlights