Ford Motor Company Q1 FY2026 earnings call

• Jim Farley thanked the Ford team, dealers, and partners for a strong start to the year. Ford had $43.3 billion in revenue and $3.5 billion in adjusted EBIT this quarter, and raised full - year adjusted EBIT guidance to between $8.5 and $10.5 billion. - Ford has been building the foundation of Ford Plus for five years, strengthening the industrial system, making progress on quality and cost, and advancing software capability. - Established an end - to - end organization for product creation and industrialization. By 2030, almost all global volume will feature next - generation electric architectures and in - house software. - Ford Pro's ecosystem of vehicles, software, and physical services is delivering higher margins, with features like Ford Pro AI to help commercial fleet managers. - Ford Blue's performance is supported by F - Series sales and go - to - market discipline, with Q1 incentive spend below industry average. - Ford Credit had a solid quarter with improvements in financing margin and portfolio performance.

Ford Pro achieved EBIT of $1.7 billion. Ford Blue delivered $1.9 billion in EBIT. Ford Model E had an EBIT loss of $777 million. Ford Credit had EBT of 783 million. Ford Pro's paid software subscriptions grew to 879,000, a 30% year - over - year increase. Ford Blue's off - road performance trims account for nearly a quarter of U.S. sales, and Maverick and F - 150 continue as the best - selling hybrids in their segments. Ford Model E benefits from portfolio changes and is matching supply with demand to optimize profitability.

• Raised full - year adjusted EBIT guidance to between $8.5 and $10.5 billion. - Full - year adjusted free cash flow expected to be between $5 billion and $6 billion, capital expenditures between $9.5 billion and $10.5 billion. - Ford Pro EBIT guidance between $6.5 and $7.5 billion, Model E losses between $4 billion and $4.5 billion, Ford Credit EBT about $2.5 billion, Ford Blue guidance increased by $500 million to between $4.5 and $5 billion. - Guidance assumes US SAR of 16 million to 16.5 million units in flat industry pricing.

• Actual results may differ from forward - looking statements. - Significant risk factors included on page 19 of the deck. - Commodity headwinds, including higher aluminum pricing due to global supply constraints, which is about $1 billion year - over - year. - Impact of sustained conflict in the Middle East or significant downturn in the U.S. economy on industry demand.

Q: Joseph Spack with UBS asked about contextualizing commodity increase and Novellus timeline.

A: Sherry and Kumar responded on commodity exposure, Novellus restart in May with contingency plans.

Q: Dan Levy with Barclays asked about improved operations and offsetting commodity costs.

A: Sherry explained software and physical services growth, net pricing, and timing differences.

Q: Andrew Porcocco with Morgan Stanley asked about first quarter performance and guidance raise.

A: Sherry broke down components of performance driving the guidance raise.

Q: Alex Perry with Bank of America asked about off - road trims strategy and commodity hedging.

A: Andrew and Sherry discussed off - road trim strategy and commodity hedging.

Q: Mark Delaney with Goldman Sachs asked about software and physical services revenue growth and pickup market.

A: Sherry and Andrew discussed software and physical services drivers and pickup market outlook.

Q: Emmanuel Rosner with Wolf Research asked about earnings cadence and free cash flow.

A: Sherry explained earnings cadence and free cash flow components.

Q: Edison Yu with Deutsche Bank Research asked about US industrial base and autonomy.

A: Jim and Sherry discussed US industrial base role and autonomy approach.

Q: Ryan Brinkman with JP Morgan asked about Ford Energy and Renault partnership.

A: Sherry and Jim discussed Ford Energy progress and Renault partnership potential.

Q: Colin Langan with Wells Fargo asked about cost items and savings.

A: Sherry addressed cost items and savings.

Q: James Piccariello with BNP Paribas asked about Novellus recovery and UEV platform.

A: Kumar and Andrew responded on Novellus and UEV platform progress.

Q: Itai McAuley with TD Cohen asked about UEV platform and suppliers.

A: Kumar and Andrew discussed UEV platform preparation and supplier updates