Ford Motor Company reported earnings with its Ford Pro segment achieving a significant $1.3 billion in EBIT, while the Ford Blue segment saw a drop to $96 million from $901 million in the prior year. The Model e segment continues to incur losses, indicating that Ford Pro is currently the company’s strongest segment.
Ford Pro holds a 40% market share in North America and has around 675,000 paid software subscriptions, contributing to its renewed revenue growth. The segment aims to maintain EBIT margins in the mid-teens and is prioritizing software-defined vehicles and connected services for fleet customers.
Over the past year, Ford’s shares have decreased by 2%, in contrast to industry growth of 22.9%, whereas competitors General Motors and Tesla have gained 7.7% and 83.3%, respectively. Currently, Ford trades at a forward price-to-sales ratio of 0.26, below the industry average, and carries a Zacks Rank #3 (Hold).
