Dearborn, Michigan – Ford’s first-quarter results released on Wednesday exceeded expectations, highlighting the company’s evolving product strategy and emphasis on gas and hybrid offerings. The quarter saw Ford achieve $42.8 billion in revenue, surpassing estimates of $40.04 billion, marking a 3% increase from the previous year. Adjusted earnings per share landed at $0.49, beating forecasts of $0.42, with adjusted EBIT reaching $2.8 billion, exceeding estimates of $2.54 billion. These results showcase a significant improvement from the previous quarter, which was impacted by the aftermath of the United Auto Workers strike.
Ford revealed that its full-year adjusted EBIT is trending towards the higher range of $10 billion to $12 billion. Additionally, the company raised its adjusted free cash flow target to $6.5 billion to $7.5 billion, while tightening its capital expenditures guidance to $8 billion to $9 billion. This update came with no changes to the full-year profit outlook. Following the earnings release, Ford’s shares rose by 3% during the after-hours trading session.
CEO Jim Farley attributed the revised guidance to a slower ramp-up of the new Ford F-150. The company also announced a $0.15 dividend for the quarter. Notably, Ford had previously categorized its business into three units under the Ford+ initiative: Ford Blue for traditional gas-powered vehicles, Model e for EVs, and Ford Pro for commercial and super duty trucks.
Despite challenges in the EV sector, Ford emphasized its commitment to gas and hybrid vehicles during the quarter. The company delayed EV production at its BlueOval City EV campus in Tennessee to 2026 and announced a re-timing of upcoming EV launches in Oakville, Ontario. Sales of electrified products, including hybrids, surged in Q1, with the Maverick hybrid pickup delivering its best quarter ever.
While Ford’s overall EV sales saw a substantial increase, the flagship F-150 experienced a decline in sales. The F-Series, including the F-150 and heavy-duty models, retained its position as America’s top-selling truck but saw a 10.2% drop in sales during the quarter. Ford attributed this to a slower ramp-up of the new F-150, which began sales in March.
Ford’s financial officer, John Lawler, noted a significant drop in EV prices during the quarter as the company works to address challenges in the Model e unit. Despite strong sales numbers, Ford employed heavy discounting and promotional deals to move inventory, particularly in the EV sector.
Looking ahead, Ford remains focused on enhancing its hybrid offerings, like the Maverick pickup and the new F-150 with a hybrid powertrain. The company’s commitment to innovation and evolution in the auto industry underscores its dedication to meeting the demands of the evolving market landscape.