Ford Motor Company 6% Notes Due Stock Earnings Reports

Q1 2026 highlights: Ford reported $43.3B revenue and $3.5B adjusted EBIT (or $2.2B ex‑IEEPA), and raised full‑year adjusted EBIT guidance to $8.5B–$10.5B. Results were driven by stronger pricing, growth in software and physical services, and timing of cost improvements. A one‑time $1.3B IEEPA tariff benefit materially helped Q1 results. Ford reiterated a Novelis recovery expected to deliver a ~$1B year‑over‑year EBIT improvement (net of $1.5B–$2B one‑time incremental costs to source alternative aluminum until Novelis ramps). Ford sees about $2B of commodity headwinds for 2026 (excluding Novelis-related temporary costs) and expects ongoing tariff costs (~$1B) to be part of the run rate. Segments: Ford Pro delivered strong margins and paid software subscriptions grew to 879k (+30% YoY); Ford Blue produced $1.9B EBIT led by F‑Series and higher‑margin off‑road trims; Model e lost $777M but showed a ~35% improvement in Gen‑1 losses and continues to invest ~$1B incremental for UEV platform and Ford Energy. Adjusted free cash flow was a use of $1.9B in Q1 driven by timing, higher net spending, working capital and investments; full‑year adjusted FCF guidance remains $5B–$6B. Balance sheet: $22B cash, $43B+ liquidity, investment‑grade rating maintained; Q2 dividend $0.15. Key program timing: Novelis hot mill restart expected in May with ramp thereafter; UEV platform production (universal EV platform) and Ford Energy capacity starting in late 2027 with continued investments in 2026 (capex guide $9.5B–$10.5B, including ~$1.5B for Ford Energy). Management emphasized organizational changes to unify product creation, software and industrialization to accelerate software‑defined vehicles and service growth projected to grow ~8% annually from ~$15B in services revenue. Risks called out: commodity volatility, Novelis ramp execution risk, and geopolitical uncertainty (Middle East) not included in guidance.