Ford (NYSE:F) held their Capital Markets Day on Monday in Dearborn, Michigan, where the company discussed their plans to meet their long-term profit targets. Ford reiterated their goal of achieving a 10% EBIT margin by 2026, with the Model e segment aiming for 8%. The company believes that enhancing their margin profile can be achieved by placing a greater emphasis on cost management. Ford identified several potential avenues for cost reduction, including streamlining complexity, enhancing supply chain stability, optimizing manufacturing processes, and implementing engineering redesigns.
Analysts are mixed on the stock, with Wells Fargo rating Ford as Underweight, citing the rise in battery raw material costs and US fuel economy regulations. Citi and Goldman Sachs analysts are Neutral on the stock, with Goldman analysts writing in a note that they are positive on the steps the company is taking to improve long-term profitability.
Ford also announced new Lithium agreements with Nemaska, EnergySource Minerals, Albemarle (NYSE:ALB), and Compass Minerals (NYSE:CMP) to help reach their 2M EV goal by 2026. These strategic partnerships in the lithium sector will support Ford in securing the necessary resources for their electrification goals.
Shares of F are down 0.26% in pre-market trading on Tuesday.