Ford exceeds Q1 earnings expectations, projects strong full-year profit revenue

Ford surpassed expectations in its first quarter results, highlighting a shift in its product strategy towards gas and hybrid offerings. The company reported revenue of $42.8 billion, up 3% from the previous year, and adjusted earnings per share of $0.63, exceeding forecasts. Ford’s adjusted EBIT came in at $2.8 billion, outperforming estimates of $2.54 billion and demonstrating improvement from the previous quarter’s challenges due to the UAW strike.

While Ford did not revise its full-year profit outlook, it indicated that full-year adjusted EBIT is on track to reach the high end of $10 billion to $12 billion. The company also raised its adjusted free cash flow target to $6.5 billion to $7.5 billion, with CAPEX guidance tightened to $8 billion to $9 billion. This adjustment reflects Ford’s confidence in its financial performance and strategic initiatives moving forward.

Ford’s division into Ford Blue, Model e, and Ford Pro has allowed the company to focus on different aspects of its business, from traditional gas-powered vehicles to EVs and commercial trucks. In the first quarter, Ford saw promising results from each division, with electric vehicle spending and production taking a back seat as the company prioritized gas and hybrid offerings.

Ford’s push into gas and hybrid vehicles yielded positive results, with US deliveries increasing by 6.8% in Q1. The company’s hybrid offerings, including the Maverick pickup and new F-150 with a hybrid powertrain, performed well in the market. Additionally, Ford’s EV portfolio, which includes the Mustang Mach-E and Lightning EV, experienced significant growth, showcasing strong demand for electric vehicles.

However, Ford faced challenges with flagship F-150 sales, which declined by 10.2% in the quarter. Despite this setback, the company remains optimistic about its overall business performance and the long-term prospects of its product lineup.

Looking ahead, Ford continues to innovate and meet customer demands in the automotive industry, positioning itself as a leader in gas, hybrid, and electric vehicle markets. With a focus on quality, value, and customer-centric offerings, Ford aims to drive sustainable growth and profitability in the coming years.