Ford Motor Co. reported a surprising surge in third-quarter profits, driven by robust vehicle sales that exceeded analyst expectations, but the automaker tempered enthusiasm by slashing its full-year outlook amid supply-chain disruptions and strategic shifts in its electric vehicle lineup. The Dearborn, Mich.-based company posted adjusted earnings of 49 cents per share, beating Wall Street estimates, on revenue of $43.1 billion, which also topped forecasts. This performance comes as Ford navigates a volatile automotive market marked by tariff uncertainties and rising costs, with executives highlighting strong demand for trucks and SUVs as key drivers of the quarter’s success.

Investors reacted positively in after-hours trading, with shares climbing about 3%, reflecting relief over the profit beat despite broader industry headwinds. However, the company’s decision to lower its annual profit guidance to between $10 billion and $11 billion in adjusted earnings before interest and taxes—down from a prior range of $10 billion to $12 billion—underscored emerging challenges. A major factor cited was a fire at a supplier’s aluminum factory, which is expected to crimp production of the bestselling F-150 pickup in the fourth quarter, potentially costing Ford hundreds of millions in lost revenue.

Ford’s pivot away from certain electric models signals a recalibration in its EV strategy, as the company grapples with slower-than-expected adoption and mounting losses in its battery-powered division.

Adding to the outlook revision, Ford announced it has halted production of the all-electric F-150 Lightning, a move that surprised some industry observers given the model’s role in the company’s push toward electrification. Executives explained the decision as part of a broader effort to stem losses in the EV segment, which reported a $1.2 billion operating loss in the quarter, up from previous periods. This contrasts with the profitability of Ford’s traditional internal-combustion engine vehicles, particularly in North America, where operating margins improved to 7.2%.

The aluminum supply disruption, detailed in Ford’s earnings release, stems from a blaze at a key facility operated by a third-party supplier, forcing the automaker to idle assembly lines and seek alternative sources. Analysts at CNBC noted that this incident could exacerbate existing pressures from proposed tariffs on imported metals, potentially inflating costs further into 2026. Ford’s chief financial officer emphasized during the earnings call that the company is accelerating cost-cutting measures, targeting an additional $2 billion in savings through efficiency gains and supply-chain optimizations.

While Ford’s third-quarter results highlight resilience in core segments, the lowered guidance raises questions about the automaker’s ability to sustain momentum amid external shocks and internal restructuring efforts.

Comparisons to rivals like General Motors Co. are inevitable, as GM recently raised its own profit forecast on strong demand and lower tariff impacts, according to reporting from The New York Times. Ford’s sales in the U.S. rose 8% to 545,522 units in the quarter, fueled by record electric vehicle deliveries, per data from Ford Authority. Yet, the suspension of F-150 Lightning production may signal a retreat from aggressive EV investments, with Ford redirecting resources toward hybrids and software-driven features that promise higher margins.

Looking ahead, Ford declared a regular quarterly dividend of 15 cents per share, payable in December, a move that reaffirms its commitment to shareholder returns despite the tempered outlook. Industry insiders suggest this could help stabilize investor confidence, but ongoing tariff negotiations and supply vulnerabilities remain wild cards. As Ford contends with these dynamics, its ability to innovate in a shifting market—balancing electrification goals with profitable core products—will be crucial for long-term competitiveness.