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

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Understanding how a global automotive leader like Ford makes money is essential for investors and anyone interested in the business of transportation and mobility. 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 vehicle sales, automotive parts, and financing services through Ford Credit. The business is structured into Automotive, Ford Credit, and emerging technology segments, with the Automotive division accounting for the vast majority of revenue.

Revenue Breakdown

• Total Revenue (Q3 2025): $50.5B (+9.4% YoY)
  • Total Automotive Revenue: $47.2B (93.4% of total)
  • Ford Credit Revenue: $3.35B (6.6% of total)
  • Ford Next Revenue: $0.0B (0% of total)
• Growth is powered by strong demand for new vehicle models, robust pricing, and continued expansion in financial services.

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, partially offset by scale and operational improvements.
• Most costs come from manufacturing, materials, logistics, and labor.

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
  • SG&A: $2.74B (+11.6% YoY, 5.4% of revenue) — includes selling, general, and administrative costs such as marketing, distribution, and corporate overhead
  • Ford continues to invest in growth and innovation, especially in electrification and digital mobility, while maintaining a focus on cost control.

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 efficiencies, and a strong performance from Ford Credit.

What Drives Ford's Money Machine?

• Automotive Sales: 93%+ of revenue comes from vehicle sales, including trucks, SUVs, and commercial vehicles.
• Ford Credit: Financing and leasing services generated $3.35B, supporting both retail and dealer customers.
• Investment in Electrification: Ford is channeling capital into electric vehicles (EVs), battery technology, and digital mobility platforms.
• Future Growth Areas: Emerging businesses like Ford Next and connected vehicle services are 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 operating expenses (especially SG&A) taking the largest chunk.
• Even after significant costs, 4.8% of revenue drops to the bottom line.

Key Takeaways

• Ford's money comes overwhelmingly from automotive sales, with a meaningful contribution from Ford Credit.
• High gross and net margins illustrate the power of Ford's scale and improving operational efficiency.
• Heavy investment in electrification and digital mobility, balanced by efficiency in operating costs.
• Ongoing growth is driven by strong vehicle demand, pricing power, and expansion in 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. Ford Credit contributes an additional 6.6% through financing and leasing services.

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 moderate profitability driven by strong vehicle sales, improved pricing, and cost efficiencies.

3. What are the largest expense categories for Ford?

The biggest expenses on Ford's income statement are cost of revenue (manufacturing, materials, labor), and operating expenses, particularly Sales, General & Administrative (SG&A) costs, which reached $2.74B in Q3 2025 as Ford prioritizes marketing, distribution, and corporate functions.

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 emerging mobility solutions and digital platforms, 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, the rate has fluctuated due to tax benefits from international structuring and credits related to electrification and R&D investments.