Ford sees profit flattening as Iran war inflation mounts

what happened

Ford Motor expects adjusted profit before interest and taxes to plateau next year, according to TradingView. CEO Jim Farley said on the third-quarter earnings call that 2027 would be roughly in line with this year's outlook of up to $11 billion.

Inflation fed by the war in Iran is raising costs for logistics, materials and chips, which Ford puts at about a $2 billion hit next year. CFO Sherry House told Bloomberg TV that relief from commodity inflation is not expected soon. Still, quarterly profit beat Wall Street estimates and Ford raised the low end of its full-year forecast.

After hours, Ford shares fell 1.5%. The stock is down 8.9% this year through Wednesday's close, while the S&P 500 has gained 13%.

why it matters

The key point for markets is that strong demand for high-margin pickups and SUVs, which has driven earnings this year, could be eroded by rising costs. The auto sector depends on metals, chips and diesel, so warnings from Ford and General Motors about commodity costs point to a broader industry trend. Ford is also putting about $2 billion into energy storage, a business that could take years to pay off.

market impact

Ford and automakers: rising commodity and shipping costs pressure margins

• ▼Ford shares pressure down — flat profit outlook and the 2027 inflation headwind weigh on the stock

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