Ford Motor Company 6.20% Notes Stock Earnings Reports

Q1 2026 highlights: Ford reported $43.3B revenue and $3.5B adjusted EBIT ($2.2B excluding a one‑time $1.3B IEEPA tariff benefit). Management raised full‑year adjusted EBIT guidance to $8.5B–$10.5B and reiterated adjusted free cash flow guidance of $5B–$6B and capex of $9.5B–$10.5B (including ~$1.5B for Ford Energy). Key operational items: strong F‑Series performance and improved revenue mix drove higher pricing and share; Ford Pro delivered $1.7B EBIT with paid software subscribers up 30% YoY to 879k; Ford Blue delivered $1.9B EBIT supported by trucks/large utilities and lower incentive spend; Model e posted a $777M loss but showed a ~35% improvement in Gen 1 losses and continues to invest in the UEV platform (launch 2027) and Ford Energy. Novelis aluminum disruption remains a material item: management expects ~150k recovery units and $1B net YoY EBIT improvement from Novelis later in the year but noted $1.5B–$2B of one‑time incremental costs to secure alternative aluminum until full throughput. Commodity headwinds increased (now just above $2B), largely from higher aluminum prices; guidance assumes current forward curves. Liquidity remains strong ($22B cash, $43B+ total liquidity); Ford repaid convertible debt, renewed $18B credit facility, relaunched and completed anti‑dilutive share repurchase, and declared a $0.15/qtr dividend. Strategic initiatives: organizational alignment to integrate product, software and industrialization (Ford+), continued expansion of high‑margin software and physical services (>$15B last year, targeting ~8% CAGR to decade end), UEV platform and scaling at Louisville (UEV pickup & other top hats), and Ford Energy (capacity starting late 2026/early 2027). Risks called out: commodity volatility, Novelis ramp timing, and geopolitical uncertainty (Middle East) that could affect demand and costs.