Ford Tops Q1 Earnings, Raises Cash Flow Target, Narrows Capex Guidance

Ford Tops Q1 Earnings, Raises Cash Flow Target, Narrows Capex Guidance

Ford Motor Company (F) reported first-quarter results that beat expectations on Wednesday, with its changing product game plan front and center along with its focus on gas and hybrid offerings. Ford also boosted some guidance metrics but not its full-year profit outlook.

• Ford reported revenue of $42.8 billion, beating estimates of $40.04 billion and up 3% compared to a year ago.
• Ford posted adjusted earnings per share of $0.49, topping forecasts of $0.42, with adjusted EBIT (earnings before interest and taxes) coming in at $2.8 billion, compared to estimates of $2.54 billion.
• Ford's results were better than those in Q4 when it was dealing with the lingering effects of the United Auto Workers (UAW) strike.

Ford Raises Cash Flow Target, Tightens Capex Guidance

While Ford did not raise its full-year profit guidance, it raised its full-year adjusted free-cash flow target and tightened its capital expenditures guidance.

Metric	Previous Guidance	New Guidance
Adjusted EBIT	$10 billion to $12 billion	Tracking to the higher end
Adjusted free cash flow	$6 billion to $7 billion	$6.5 billion to $7.5 billion
Capital expenditures	$8 billion to $9.5 billion	$8 billion to $9 billion

Ford's CEO Jim Farley said on the earnings call that a slower ramp of the all-new Ford F-150 factored into its guidance update.

Ford's Product Game Plan: Focus on Gas and Hybrids

Ford's Q1 results reflect its focus on gas and hybrid vehicles, with EV spending and production taking a back seat. Ford has pushed back EV production at its BlueOval City EV campus in Tennessee to 2026 from its initial 2025 start date. It has also "retimed" the launch of upcoming EVs at its plant in Oakville, Ontario, to 2027 from 2025.

• Ford's Q1 US deliveries jumped 6.8% to 508,083 vehicles, powered by strong sales of electrified products such as hybrids.
• The Maverick hybrid pickup saw its best quarter ever, with sales jumping 77%.
• Overall hybrid sales jumped 42% to 38,421, the best quarter ever for hybrids.
• Ford's overall EV portfolio saw a massive 82% jump to 20,223 EVs sold in Q1.

Ford's focus on hybrids and gas-powered vehicles has helped it weather the recent softening demand for EVs. However, Ford's flagship F-150 sales fell 10.2% in the quarter, as Ford experienced a slow ramp-up of the all-new F-150.