$F · FORD MOTOR CREDIT CO LLC
Ford Motor Credit Company LLC reported Q3 2026 net income of $688M, up from $566M in Q3 2025, on total revenue of $3.63B (+1.7% YoY). EBT reached $803M, a $172M increase, with $194M in favorable "Other" items — primarily derivative market value gains — more than offsetting higher credit losses and lower financing margin. Total net receivables were $146.1B, essentially flat YoY.
- Q3 2026 net income: $688M vs $566M a year ago, a 21.5% increase.
- EBT rose to $803M from $631M, driven by $194M in favorable "Other" items including derivative market value gains.
- U.S. loss-to-receivables ratio worsened to 67 bps from 62 bps, reflecting higher severities.
- U.S. auction values fell 3% YoY to $30,945, pressured by increased industrywide used-vehicle supply.
- First nine months 2026 net income nearly doubled to $2.44B from $1.53B, aided by a Q2 tax restructuring benefit.
Extended-hours trading shows F shares at $11.81, down 1.01% from the regular close of $11.93, suggesting the credit deterioration (higher LTR ratio, lower auction values) is outweighing the headline earnings beat in after-hours reaction.
Ford Credit's earnings quality is under scrutiny: headline net income masks credit deterioration that directly impacts Ford Motor Company's captive finance arm and, by extension, Ford's broader financial ecosystem.
Ford Credit's results reflect the broader auto finance squeeze: rising credit losses and softening used-car values are compressing margins across captives and banks alike, though Ford Credit's $28.3B net liquidity position provides a buffer peers may lack.
U.S. LTR ratio rose to 67 bps from 62 bps YoY, with higher severities cited as the driver. U.S. auction values declined 3% YoY to $30,945 amid growing industrywide used-vehicle supply, signaling residual value pressure on Ford Credit's $28B operating lease portfolio.