Ford Pro drives Ford Motor Company to new heights

Currently, Ford Pro is establishing itself as the hidden gem of Ford Motor Company. While the company is known for its outstanding dividend yield of 5.5%, losses in the electric vehicle (EV) sector, challenges in China, and its position as a market leader in the SUV and truck segment, the most significant growth driver remains largely unnoticed. "Ford+ is on track, our fundamental quality is improving, and Ford Pro highlights the enormous potential within all our business areas," stated Jim Farley, President and CEO of Ford. Ford+, the new three-part business strategy of Ford, emphasizes Ford Pro, which is currently delivering impressive results. A look at the first half of 2024 shows the exceptional performance of Ford Pro. During this period, Ford Pro achieved earnings before interest and taxes (EBIT) of $5.6 billion, while the traditional Ford Blue business recorded only $2 billion in EBIT. Particularly noteworthy is the EV sector, Ford Model e, which posted a loss of $2.5 billion. Ford Pro is not only growing faster than the traditional business areas but also demonstrates remarkable pricing power. In the first half of 2024, Ford Pro's revenue grew by 21%, even though sales only increased by 12%. In contrast, Ford Blue had a revenue decline of 3% with a sales drop of 4%. The EBIT margins of Ford Pro were an impressive 15.9% in the first half, representing an improvement of 290 basis points year-over-year. Ford Blue, on the other hand, generated EBIT margins of just 4.3%. Ford confirmed that all produced Super Duty trucks and Transit commercial vehicles are fully sold and increased production capacity in Ontario, Canada, by 100,000 units. Another often overlooked aspect is Ford Pro's subscription service, which has a high profit margin. Subscriptions for Ford Pro software increased by 35% in the second quarter, and mobile repair orders doubled. Looking ahead, Ford Pro is likely to continue booming, while growth in the traditional business is expected to slow down. Management raised the EBIT forecast for Ford Pro to $9 to $10 billion for the full year, while guidance for Ford Blue was lowered to $6 to $6.5 billion, primarily due to higher warranty costs. Investors should focus on Ford Pro, which is rapidly becoming the central revenue source and whose margins could further increase as the subscription and repair service expands. Analyze Ford stocks carefully before purchasing—analysts have identified the best options in the market, and Ford was not among them. Keep an eye on the next success stories!