A Ford logo on a Ford F-150 pickup truck for sale in Encinitas, California, U.S. October 20, 2025. REUTERS/Mike Blake

By Nora Eckert and Nathan Gomes

DETROIT (Reuters) -Ford Motor cut its profit guidance on Thursday, citing fallout from a fire at a critical aluminum supplier that will crimp production of some of its most lucrative vehicles through the end of the year.

A September fire at the Novelis factory in Oswego, New York that supplies material for F-150 trucks will cost the automaker about $1.5 billion to $2 billion before taxes and interest, Ford said, adding it expects to offset about $1 billion of that next year.

Ford CEO Jim Farley said in a statement that he had been on site working with Novelis to source aluminum from parts of the plant that were still operational. “We have made substantial progress in a short time to minimize the impact in 2025 and recover production in 2026,” Farley said.

Ford released results after the stock market closed, and shares of the automaker increased about 4% after the bell.

Novelis said on Thursday it planned to restart operations at the affected part of the plant by the end of December, an acceleration from its previous projection of resuming by the first quarter of 2026.

Ford posted revenue of $50.5 billion for the third quarter, up 9% from a year earlier. It reported earnings per share for the period of 45 cents, beating LSEG analysts' expectation of 36 cents.

The Detroit Three automaker cut its annual outlook for the second time this year, to earnings before interest and taxes of $6.0 billion to $6.5 billion, from $6.5 billion to $7.5 billion.

Ford previously lowered its guidance because of tariffs.

Relief is on the horizon for U.S. automakers, after President Donald Trump approved an order to expand credits for U.S. auto and engine production, allowing companies to receive a credit equal to 3.75% of the suggested retail price for U.S. assembled vehicles through 2030 to offset import tariffs on parts.

“I’d like to thank President Trump and his team,” Farley said on a call with analysts.

Ford said in July that Trump's levies would cost up to $3 billion this year, $1 billion of which it planned to offset. On Thursday, executives said it now faces a $1 billion net tariff impact because of the relief announced last week. Executives said they expected a similar net impact from the levies in 2026.

Ford Chief Financial Officer Sherry House said it would have raised guidance had it not been for the Novelis fire. The automaker is purchasing aluminum from other Novelis facilities, executives said.

Novelis supplies other automakers, including Toyota and Stellantis, but Ford is a major consumer because its F-150 trucks use a mainly aluminum body. General Motors on Tuesday said it has been “minimally impacted” by the fire.

Ford said it expected to lose up to 100,000 units of production through the end of the year, and that it would increase production of its F-150 and SuperDuty trucks by 50,000 vehicles at plants in Michigan and Kentucky next year to recoup half of those losses. Production of the F-150 Lightning EV truck will be paused indefinitely to focus on more profitable gasoline versions, the company said.

The auto industry faces several potential disruptions to global supply chains beyond fallout from the Novelis fire. China recently tightened controls over exports of battery materials used in electric vehicles, as well as rare earths, which are used extensively inside cars.

Separately, an intellectual-property dispute between the Netherlands and China over computer chips has auto-industry groups warning of potential factory disruptions.

GASOLINE-FUELED TRUCKS POWER PROFITS

Sales of gasoline-fueled trucks and SUVs continue to power Detroit’s profits, as Ford and GM have both walked back their electric vehicle plans to focus on the traditional core products.

Automakers’ EV sales surged in the third quarter as shoppers rushed to take advantage of a $7,500 tax credit that went away at the end of September. Analysts and automotive executives project that EV demand will drop off through the end of the year, but slowly regain ground in 2026.

GM’s stock surged 15% on Tuesday after it reported third-quarter results that beat Wall Street’s expectations, including an upbeat outlook on 2026 and lowered impact from tariffs. Tesla on Wednesday reported revenue that beat forecasts, but its profits missed expectations on tariff and research costs, sending its stock down about 4%.

Ford's EV losses and quality problems have been its largest challenges for several quarters. Earlier this year, the automaker said it expected to lose up to $5.5 billion on its EV and software business in 2025. It recorded a $1.4 billion operating loss on this segment for the quarter.

(Reporting by Nora Eckert and Nathan Gomes; Editing by Mike Colias and David Gregorio)