Will Ford Pro's Fleet and Software Strength Fuel Long-Term Gains?

U.S. legacy automaker Ford’s F commercial arm, Ford Pro, is becoming the company’s biggest growth engine. The segment continues to deliver strong results, with third-quarter 2025 EBIT rising 9.4% year over year to $2 billion on $17.4 billion in revenues, up 9%. With EBIT margins above 11% in the last reported quarter, this is the most lucrative segment of Ford. In the first nine months of 2025, the unit’s EBITDA margin was 10.6%, with wholesale volumes and revenues up 3% and 1%, respectively.

The segment essentially blends vehicle sales, services, and software into a single ecosystem designed for commercial clients. Ford Pro’s lineup—anchored by models like the F-150, Super Duty, and Transit—makes it a strong contender in the commercial vehicle space.

But the real differentiator lies in its service infrastructure and digital integration. Ford Pro’s specialized dealer network continues to deepen its reach. Over the past year, dealers added another 1,700 service bays and 500 mobile vans, making Ford the largest mobile service fleet in the United States.

Software is emerging as the next frontier of profitability. Paid software subscriptions rose 8% sequentially to 818,000 in the third quarter, with growing attach rates and average revenue per user. These services don’t just add high-margin recurring revenues but also strengthen parts sales and customer retention. For instance, fleets using Ford’s software see up to a 20-point higher service parts capture rate. Strategic partnerships like the one with ServiceTitan extend this ecosystem further, embedding Ford’s real-time vehicle data into daily fleet operations.

With resilient margins, a rising base of subscription income and an expanding service footprint, Ford Pro is proving to be a key catalyst for the firm. If Ford Pro keeps scaling its fleet services and software base, it could remain Ford’s strongest lever for long-term growth.

Competitive Context

Competition in the commercial fleet space is heating up. Ford’s closest peer, General Motors GM, is ramping its GM Envolve platform, which unifies fleet sales, connected services and energy solutions for commercial clients. Like Ford Pro, it’s leveraging connected vehicle data to drive fleet efficiency and service retention. Italian-American auto giant Stellantis STLA also remains a key rival through its Ram Commercial and Fiat Professional brands, especially in vans and work trucks. At the same time, it develops its own connected fleet software under the Mobilisights data unit.

The Zacks Rundown for Ford

Shares of Ford have gained 22.8% over the past year, underperforming the industry. General Motors has risen 27%, while Stellantis has lost 26% over the same period.

From a valuation standpoint, F trades at a forward price-to-sales ratio of 0.32, below the industry average. It carries a Value Score of A. In comparison to this, General Motors and Stellantis trade at 0.35 and 0.17, respectively.

Take a look at how Ford’s EPS estimates have been revised over the past 90 days.

Ford stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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