Ford Posts $0.63 EPS on $43.3B Revenue, Raises Full-Year Guidance
Ford Motor Company (NYSE: F) delivered stronger-than-expected first-quarter results Tuesday, reporting earnings of $0.63 per share compared to $0.12 in the prior year period. The automaker raised its full-year guidance on the back of robust truck demand and a one-time tariff benefit.
Key Numbers
Ford's first-quarter revenue climbed 6% year-over-year to $43.3 billion, while net income surged to $2.5 billion from $500 million a year ago. The results included a significant $1.3 billion one-time benefit from IEEPA tariff adjustments, which primarily boosted the company's traditional Ford Blue and commercial Ford Pro segments.
Adjusted earnings before interest and taxes (EBIT) reached $3.5 billion, up from $1.0 billion in Q1 2025, representing an adjusted EBIT margin of 8.1% — a substantial improvement from 2.5% last year. The company's adjusted earnings per share came in at $0.66, compared to $0.14 in the prior year quarter.
Operating cash flow totaled $1.3 billion, though adjusted free cash flow showed a use of $1.9 billion, reflecting typical seasonal patterns and increased capital investments. Ford ended the quarter with $22.0 billion in cash and $43.1 billion in total liquidity after repaying convertible debt.
What Management Said
CEO Jim Farley emphasized the momentum behind Ford's transformation strategy, stating the company has "built the foundation for a more modern, resilient Ford" while improving cost and quality. He highlighted that Ford is entering "one of the most intensive product, software and physical services rollouts" in the company's history.
CFO Sherry House provided clarity on the path to higher margins, noting that "the strength in the quarter reflects strong execution in our profit pillars." She specifically pointed to accretive recurring revenue from software and physical services as a key driver of improved profitability. House also confirmed the company remains on track to deliver promised cost reductions and expects to recover profits from Novelis in the second half of the year.
Management raised full-year adjusted EBIT guidance to $8.5-10.5 billion from the previous range of $8.0-10.0 billion, signaling confidence in the business despite ongoing challenges in the electric vehicle segment.
What to Watch
Ford's traditional combustion engine business continues to carry the company's profitability. Ford Blue, the ICE segment, generated $1.9 billion in EBIT on $23.9 billion in revenue, with margins expanding to 8.1% from just 0.5% a year ago. The strength came from F-Series trucks, Bronco models, and double-digit growth in Explorer and Expedition sales. Notably, off-road performance trims now represent nearly 25% of U.S. sales.
The commercial Ford Pro segment remains a profit engine, delivering $1.7 billion in EBIT despite a 10% decline in wholesale units. The segment's paid software subscriptions grew 30% year-over-year to 879,000, demonstrating Ford's progress in building recurring revenue streams.
Electric vehicle losses remain a concern but are improving. Ford Model e posted a Q1 EBIT loss of $777 million, better than the $849 million loss a year ago. Management expects full-year Model e losses of $4.0-4.5 billion as the company prepares to launch more affordable EVs on its new Universal EV platform.
Looking ahead, Ford faces several headwinds including approximately $2 billion in commodity cost increases (primarily aluminum) and $1 billion in tariff impacts. The company is targeting $1 billion in material and warranty cost reductions to partially offset these pressures.
The raised guidance assumes U.S. industry sales of 16.0-16.5 million vehicles with flat pricing. Ford Credit is expected to contribute about $2.5 billion in earnings before taxes for the full year, providing additional stability to overall results.