Ford Motor Company

My name is Layla, and I will be your conference operator today. At this time, I would like to welcome you to the Ford Motor Company third quarter 2025 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, and if you have joined via the webinar, please use the raise hand icon, which can be found on the bottom of your webinar application. If you have joined by phone, please dial star nine on your keypad to raise your hand. At this time, I would like to turn the call over to Lynn Antipas Tyson, Chief Investor Relations Officer.

Thank you, Layla. And welcome to the Ford Motor Company's third quarter 2025 earnings call. With me today are Jim Farley, President and CEO, Sherry House, CFO, Andrew Frick, President, Ford Blue and Model E, and Kumar Gauhotra, Chief Operating Officer. Joining us for Q&A will be Kathy O'Callaghan, CEO of Ford Credit, and Steve Crowley, Chief Policy Officer and General Counsel. Also with us is Alicia Bowler-Davis, President of Ford Probe. Jim will give a high-level overview, followed by Kumar on industrial progress, Andrew on market dynamics, and Sherry on our financial review and guidance. We'll be referencing non-GAAP measures today. These are reconciled to the most comparable U.S. GAAP measures in the appendix of our earnings deck. You can find the deck at shareholder.ford.com. Our discussion also includes forward-looking statements. Our actual results may differ. The most significant risk factors are included on page 20. of our deck. Unless otherwise noted, all comparisons are year-over-year. Company, EBIT, EPS, and free cash flow are on an adjusted basis. Upcoming IR engagements include Andrew Frick at the Social Bank Conference in Toronto on November 18th and Sherry House at the Barclays Conference in New York on November 19th. Now I'd like to turn the call over to Jim.

Thanks, Lynn. Before I get started on earnings, I wanted to welcome Alicia Bowler-Davis. to our team and to all of you her leadership is critical as we build our incredible powerhouse ford pro into a durable product software services powerhouse alicia will cover pro starting on our fourth quarter earnings call i'd like to thank the ford team as well as our suppliers and all of our dealers for delivering a very strong quarter we not only solidly beat expectations but our underlying performance has us on track to raise our full year 2025 EBIT guidance if it weren't for the impact of the Novellus fire in Oswego, New York. Sherry will provide details of the financial impact of the Novellus fire, and I'm very pleased with our team's swift and decisive response to this challenge. We immediately mobilized a dedicated crisis team, worked around the clock with Novellus, to secure alternative aluminum sources for our operational lines and accelerate the plant's recovery. Several top leaders and I personally visited the site to support all of these efforts. In addition, we are adding up to 1,000 new jobs to increase F-Series production to recover lost volume and fulfill strong customer demands. We have made substantial progress in a very short timeframe in both reducing the 2025 impact and putting in place an exciting recovery plan for next year. Turning to our results, our Ford Plus plan delivered a record $50.5 billion in revenue and $2.6 billion in adjusted EBIT. Once again, we made meaningful progress in cost and quality, thanks to the disciplined execution of our industrial team. Kumar will share more details. I'd like to thank President Trump and his team for the recent Terra policy developments, which are favorable to Ford as the most American auto manufacturer. Credit-based on our large U.S. manufacturing volume will allow us to offset tariffs on imported auto parts we need for our strong American production and manufacturing base. In addition, tariffs leveling the playing field for those imported medium and heavy duty trucks is a positive for Ford because we are no longer disadvantaged for building every single one of our super duties here in the United States. We also continue to watch for leaf from tailpipe emissions, which may come as soon as the end of this year. Federal legislation has already scaled back California's ZEV rules, and we anticipate a meaningful reduction in federal requirements next year. We are adjusting our product mix accordingly. Our Ford Plus plan is designed to win in the market among four key trends. Markets are more regional now. We all need tailored strategies. Customers are more fragmented between retail and commercial. This requires unique services and digital solutions for both. The competition is getting tougher. Namely, the Chinese OEMs are expanding globally. And the industry faces lower returns due to the EV overcapacity and global pressures. Thankfully, Our strategy plays to our strengths at Ford, iconic work vehicles, passion products like Mustang, and the off-road franchises like Bronco and Raptor. We're also prioritizing hybrids across our lineup, including the development of extended range hybrid options. In the near term, I believe EV adoption will now only be about 5% of the U.S. market, but this is going to grow. especially for affordable EV vehicles. We are well positioned for this with the universal EV platform, which underpins digitally advanced, very spacious and appealing products that start at around $30,000. This is not a distant plan. It's right around the corner for us at Ford. Sourcing is at 95% complete now. We are testing vehicles, We'll begin installing equipment in Louisville for the UEV later this year. We are on track to start production of our LFP cells at Marshall, Michigan plant later this year. To compete, we need innovation and hyper cost efficiency. In this capital intensive environment, smart partnerships will be essential to us. And our largest near-term opportunity is closing that cost gap and achieving world-class quality. Kumar?