Ford Boosts Ford Blue Capex, Targets 8% Adjusted EBIT Margin by 2029
Ford reported a 3.6% adjusted EBIT margin in 2025 and expects Q1 2026 margin near 2.3% with elevated Novelis aluminum costs. It plans H2 margin normalization as volumes stabilize and truck capacity ramps, boosting Ford Blue investments while scaling back Model e to reach 8% EBIT by 2029.
1. 2026 Margin Outlook and 2029 Target
Ford exited 2025 with a 3.6% adjusted EBIT margin and forecasts first-quarter 2026 margin at roughly 2.3% as elevated Novelis aluminum costs persist. Management expects normalization in the second quarter and a return to underlying run-rate levels in H2 as volumes stabilize and new truck capacity begins production.
2. Strategic Reallocation to Ford Blue
To reach its long-term goal of an 8% adjusted EBIT margin by 2029, Ford is increasing capital allocation to the higher-margin Ford Blue business, focusing on hybrids and new models. Simultaneously, the company is intentionally moderating investment in Model e to balance near-term profitability with sustainable EV growth.