How F (Ford Motor Company) Makes Money in 2025: A Deep-Dive With Income Statement

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Understanding how a global automaker like Ford makes money is essential for investors and anyone interested in the business of automotive manufacturing and mobility solutions. In this post, we break down Ford's quarterly income statement (Q3 2025) using a Sankey chart to visualize the financial flows — what comes in, where it goes, and what's left as profit.

Quick Ford Overview

Ford operates as a leading global automotive manufacturer, designing, producing, and selling cars, trucks, SUVs, and commercial vehicles under the Ford and Lincoln brands. Revenue comes primarily from automotive sales, with a smaller but significant contribution from its financial services arm, Ford Credit. The company’s business segments include Automotive, Ford Credit, and emerging mobility initiatives (Ford Next).

Revenue Breakdown

• Total Revenue (Q3 2025): $50.5B (+9.4% YoY)
  • Total Automotive Revenue: $47.2B (93.4% of total, +9.6% YoY)
  • Ford Credit Revenue: $3.35B (6.6% of total, +7.1% YoY)
  • Ford Next Revenue: $0.0B (0% of total)
• Growth is powered by strong vehicle sales volumes, higher average transaction prices, and continued demand for Ford’s electrified and commercial vehicles.

Gross Profit and Margins

• Gross Profit: $4.30B (8.5% gross margin)
  • Cost of Revenue: $46.2B (+7.9% YoY)
  • Ford maintains moderate margins due to the capital-intensive nature of automotive manufacturing, offset by operational improvements and a focus on higher-margin vehicles.
• Most costs come from vehicle production (materials, labor, logistics) and warranty expenses.

Operating Income and Expenses

• Operating Income: $1.56B (+77.0% YoY, 3.1% margin)
• Operating Expenses: $2.74B (+11.6% YoY)
  • R&D: Not separately disclosed for Q3 2025; included in SG&A
  • SG&A: $2.74B (+11.6% YoY, 5.4% of revenue) — covers administrative costs, marketing, and product development
  • Ford continues to invest in electrification, digital platforms, and advanced driver-assistance systems while maintaining cost discipline.

Net Income

• Pre-Tax Income: $1.82B (+109.2% YoY, 3.6% margin)
• Income Tax: Not disclosed for Q3 2025
• Net Income: $2.45B (+174.3% YoY, 4.8% net margin)
• Ford converts a moderate portion of sales into profit due to improved pricing, cost controls, and a favorable mix of higher-margin vehicles.

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What Drives Ford's Money Machine?

• Automotive Sales: 93%+ of revenue comes from selling vehicles globally, especially trucks, SUVs, and commercial vehicles.
• Ford Credit: Generates $3.35B in revenue, supporting vehicle sales through financing and leasing.
• Investment in Electrification: Billions invested in EVs, battery technology, and digital mobility platforms.
• Future Growth Areas: Ford Next (mobility, autonomous vehicles) remains in early stages, not yet profitable but positioned for long-term growth.

Visualizing Ford's Financial Flows

The Sankey chart below visualizes how each dollar flows from gross revenue, through costs and expenses, down to net income. This helps investors spot where value is created, what areas weigh on profits, and how efficiently the company operates.

• Most revenue flows into gross profit, with cost of revenue (vehicle production) taking the largest chunk.
• Even after significant operating expenses, 4.8% of revenue drops to the bottom line.

Key Takeaways

• Ford's money comes overwhelmingly from automotive sales
• High gross and net margins illustrate the power of Ford's brand and pricing strategy
• Heavy investment in electrification and digital platforms, balanced by efficiency in operating costs
• Ongoing growth is driven by strong demand for trucks/SUVs, electrified vehicles, and financial services

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FAQ About Ford's Income Statement

1. What is the main source of Ford's revenue in 2025?

Ford generates over 93% of its revenue from automotive sales, including cars, trucks, SUVs, and commercial vehicles. The remainder comes from Ford Credit, its financial services division.

2. How profitable is Ford in Q3 2025?

Ford reported net income of $2.45B in Q3 2025, with a net margin of approximately 4.8%, reflecting strong profitability driven by higher vehicle prices, improved product mix, and cost controls.

3. What are the largest expense categories for Ford?

The biggest expenses on Ford's income statement are cost of revenue (vehicle manufacturing) and operating expenses, particularly Sales, General & Administrative (SG&A) costs, which reached $2.74B in Q3 2025 as Ford prioritizes investment in electrification and digital transformation.

4. Why does Ford Next operate at a loss?

Ford Next, despite generating $0M in revenue, posted an operating loss in Q3 2025. This is because Ford aggressively invests in mobility solutions and autonomous vehicle development, believing these will drive long-term growth—even if the division is unprofitable today.

5. How does Ford's effective tax rate compare to previous years?

Ford's effective tax rate for Q3 2025 was not disclosed. Historically, Ford’s tax rate fluctuates due to factors like international operations and tax credits from R&D and electrification investments.