F-PC Q1 2026 Earnings Call Summary

Revenue: $43.3 billion, up over 6% year-over-year.
Adjusted EBIT: $3.5 billion; $2.2 billion when excluding a one-time $1.3 billion benefit from IEEPA tariffs.
Adjusted Free Cash Flow: A use of $1.9 billion, attributed to higher spending and working capital changes.
Cash Position: $22 billion in cash and over $43 billion in liquidity.
Dividend: Declared a second-quarter dividend of $0.15 per share.

Ford+ Plan: The company is raising its full-year adjusted EBIT guidance to $8.5 billion to $10.5 billion, reflecting strong execution and momentum.
Product Development: Aiming to refresh 80% of North America and 70% of global portfolios by 2029, including a universal EV platform launch in 2027.
Software and Services: Anticipating nearly 8% annual growth in high-margin software and physical services revenue, which totaled over $15 billion last year.
Ford Pro Performance: Achieved EBIT of $1.7 billion, with a 30% year-over-year increase in paid software subscriptions.
Quality Improvements: Ranked #4 in J.D. Power's U.S. Customer Service Index, the best performance in 30 years.

2026 Guidance: Adjusted EBIT of $8.5 billion to $10.5 billion, free cash flow of $5 billion to $6 billion, and capital expenditures of $9.5 billion to $10.5 billion.
Segment Outlook:
- Ford Pro: EBIT of $6.5 billion to $7.5 billion.
- Model e: Expected losses of $4 billion to $4.5 billion.
- Ford Credit: EBT of about $2.5 billion.
- Ford Blue: Increased guidance to $4.5 billion to $5 billion.

Commodity Headwinds: Expecting over $2 billion in commodity cost increases, primarily due to higher aluminum prices and ongoing tariffs.
Free Cash Flow Concerns: Q1 cash burn of $1.9 billion raises questions about cash flow sustainability despite robust EBIT.
Model e Losses: Continued losses in the Model e segment, although improvements are anticipated.
Global Risks: Potential impacts from geopolitical tensions, particularly the conflict in the Middle East, which could affect supply chains and demand.

Commodity Pricing: CFO Sherry House discussed the uncertainty in predicting commodity prices for 2027, highlighting the impact of global shortages and geopolitical events.
Novelis Recovery: Kumar Galhotra confirmed that the Novelis facility is expected to restart in May, with contingency plans in place if ramp-up issues arise.
Partnerships and Competition: CEO Jim Farley emphasized Ford's commitment to safeguarding the U.S. auto industry while exploring global partnerships, including with Chinese OEMs.
Electric Vehicle Strategy: Discussions on the UEV platform indicated a focus on affordability and a strong market demand, with plans to launch new models in the near future.
Operational Efficiency: The company is focusing on integrating software and services into its vehicle offerings, which is expected to improve margins and customer experience.

This summary encapsulates Ford's strong Q1 performance while addressing the challenges and strategic initiatives that will shape its future.

F-PC — Ford Motor Company 6% Notes due