Ford Reports Strong Q1 Earnings but Faces Severe EV Segment Losses
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy F?
Source: seekingalpha
- EV Segment Losses: Ford's EV division reported an EBIT loss of $777 million in Q1, significantly worse than expected by 36%, with projected losses of $4 billion to $4.5 billion for FY26, highlighting major challenges in its electric vehicle strategy.
- Overall Performance Boost: Ford achieved total revenue of $43.3 billion in Q1, a 6.4% year-over-year increase, with Ford Blue revenue rising 14% to $23.9 billion and EBIT reaching $1.9 billion, indicating strong growth in traditional business segments.
- Adjusted EPS Growth: The adjusted earnings per share for Ford stood at $0.66, a substantial increase from $0.14 in the same quarter last year, exceeding market expectations by $0.47, reflecting effective execution in cost control and profit enhancement.
- Optimistic Future Outlook: Ford raised its EBIT guidance for FY26 to $8.5 billion to $10.5 billion and expects free cash flow of $5 billion to $6 billion, demonstrating confidence in future financial performance despite ongoing pressures in the EV sector.
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Analyst Views on F
Wall Street analysts forecast F stock price to rise
14 Analyst Rating
3 Buy
10 Hold
1 Sell
Hold
Current: 12.400
Low
11.00
Averages
13.65
High
16.00
Current: 12.400
Low
11.00
Averages
13.65
High
16.00
About F
Ford Motor Company is an automobile company. The Company develops and delivers Ford trucks, sport utility vehicles, commercial vans and cars, and Lincoln luxury vehicles, along with connected services. The Company’s segments include Ford Blue, Ford Model e, Ford Pro, and Ford Credit. The Ford Blue segment primarily includes the sale of Ford and Lincoln internal combustion engine (ICE) and hybrid vehicles, service parts, accessories, and digital services for retail customers. The Ford Model e segment primarily includes the sale of its electric vehicles, service parts, accessories, and digital services for retail customers. The Ford Pro segment primarily includes the sale of Ford and Lincoln vehicles, service parts, accessories, and services for commercial, government, and rental customers. The Ford Credit segment consists of the Ford Credit business on a consolidated basis, which is primarily vehicle-related financing and leasing activities. Its vehicle brands are Ford and Lincoln.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Ford Motor Set to Announce Q1 Earnings Results
- Earnings Announcement: Ford Motor is set to report its first-quarter earnings after market close on Wednesday, with analysts expecting adjusted earnings per share of 19 cents and automotive revenue of $38.82 billion, indicating stable performance in the market.
- Revenue Growth: The anticipated automotive revenue reflects a 3.7% increase year-over-year, while adjusted earnings per share are projected to rise by 35.7% from 14 cents last year, showcasing significant improvement in profitability and boosting investor confidence.
- Future Guidance: Ford's 2026 guidance projects adjusted EBIT between $8 billion and $10 billion, an increase from $6.8 billion last year, indicating the company's positive outlook for future growth and operational efficiency.
- Restructuring Plans: The automaker plans to record approximately $19.5 billion in special items starting in Q4 2025, primarily for restructuring business priorities and EV investments, which will have profound implications for the company's financial health.
See More
Ford Reports Strong Q1 Earnings but Faces Severe EV Segment Losses
- EV Segment Losses: Ford's EV division reported an EBIT loss of $777 million in Q1, significantly worse than expected by 36%, with projected losses of $4 billion to $4.5 billion for FY26, highlighting major challenges in its electric vehicle strategy.
- Overall Performance Boost: Ford achieved total revenue of $43.3 billion in Q1, a 6.4% year-over-year increase, with Ford Blue revenue rising 14% to $23.9 billion and EBIT reaching $1.9 billion, indicating strong growth in traditional business segments.
- Adjusted EPS Growth: The adjusted earnings per share for Ford stood at $0.66, a substantial increase from $0.14 in the same quarter last year, exceeding market expectations by $0.47, reflecting effective execution in cost control and profit enhancement.
- Optimistic Future Outlook: Ford raised its EBIT guidance for FY26 to $8.5 billion to $10.5 billion and expects free cash flow of $5 billion to $6 billion, demonstrating confidence in future financial performance despite ongoing pressures in the EV sector.
See More
Tech Giants Show Mixed Earnings Performance
- Google Earnings Beat: Alphabet reported first-quarter revenue of $109.9 billion, exceeding the $107.2 billion expected by analysts, with cloud revenue surging 63% year-over-year to $20.02 billion, indicating strong market demand and competitive advantage.
- Microsoft Spending Miss: Microsoft reported $31.9 billion in capital expenditures for its fiscal third quarter, falling short of the $34.9 billion consensus among analysts, although it posted earnings and revenue beats, reflecting a cautious investment strategy.
- Amazon Capital Expenditures Rise: Amazon's first-quarter revenue reached $181.52 billion, surpassing expectations, but capital expenditures totaled $44.2 billion, slightly above the $43.39 billion forecast, highlighting the company's ongoing expansion plans.
- Meta User Growth Misses: Meta's first-quarter capital expenditures were $19.84 billion, below the StreetAccount forecast of $27.57 billion, despite beating revenue expectations, indicating challenges in user growth.
See More
Ford Raises Annual Guidance by $500 Million Amid Tariff Refunds
- Annual Guidance Increase: Ford raised its projected earnings before interest and taxes for the year from $8 billion to $10 billion to a new range of $8.5 billion to $10.5 billion, primarily benefiting from a $1.3 billion tariff refund, although it faces rising raw material costs.
- Increased Tariff Costs: The company anticipates net tariff costs of $1 billion for the year, and while it did not disclose the gross tariff impact, rising aluminum costs due to major supplier Novelis's fires have significantly affected production.
- F-150 Production Decline: Inventory of the F-150 dropped 38% in April compared to the previous year, largely due to production disruptions from Novelis's fires, with analysts estimating a 12% year-over-year decline in F-Series production for the first quarter, exceeding expectations.
- Financial Performance Exceeds Expectations: Ford reported adjusted earnings per share of 66 cents for the first quarter, significantly surpassing analysts' expectations of 19 cents, resulting in a net profit of $2.5 billion and revenue of $43.3 billion.
See More
Stocks Pull Back as Oil Prices Rise, Impacting Market Sentiment
- Rising Oil Prices: West Texas Intermediate crude surpassed $107 per barrel and Brent crude exceeded $119, leading to a rise in U.S. gasoline prices to nearly $4.23 per gallon, up from $4.18 on Tuesday, indicating heightened market concerns over inflation.
- Fed Policy Divergence: The Federal Reserve maintained interest rates at its latest meeting, but for the first time, four officials dissented, reflecting internal disagreements on future monetary policy, which could influence market expectations regarding interest rate movements.
- Boeing Stock Decline: Boeing shares fell after Airbus secured a $21.37 billion order for 102 A320neo jets from China Southern Airlines, highlighting increased competitive pressure on Boeing in the Chinese market, although there remains potential for significant future orders.
- Earnings Season Approaches: Major companies like Amazon, Alphabet, Meta, and Microsoft are set to report earnings, with market focus on their performance regarding AI demand, supply constraints, and capital expenditures, with expectations that the four will collectively spend at least $608 billion this year to maintain competitiveness in the AI sector.
See More
Ford's First Quarter Earnings Expectations
- Earnings Forecast: Ford is expected to report adjusted earnings per share of 19 cents and automotive revenue of $38.82 billion for the first quarter, reflecting a stable performance with a 3.7% year-over-year revenue increase.
- Profit Growth: The adjusted earnings per share is projected to rise from 14 cents in Q1 2025 to 19 cents, marking a significant 35.7% increase, indicating improved profitability for the company.
- Restructuring Impact: Ford plans to record approximately $19.5 billion in special items starting in Q4 2025, including $7 billion for 2026 and 2027, primarily aimed at restructuring business priorities and EV investments, highlighting the company's strategic focus on future growth.
- 2026 Guidance: The guidance for 2026 includes an expected adjusted EBIT of $8 billion to $10 billion, up from $6.8 billion last year, suggesting a positive outlook for the company's financial performance moving forward.
See More
Ford Motor Set to Announce Q1 Earnings Results
- Earnings Announcement: Ford Motor is set to report its first-quarter earnings after market close on Wednesday, with analysts expecting adjusted earnings per share of 19 cents and automotive revenue of $38.82 billion, indicating stable performance in the market.
- Revenue Growth: The anticipated automotive revenue reflects a 3.7% increase year-over-year, while adjusted earnings per share are projected to rise by 35.7% from 14 cents last year, showcasing significant improvement in profitability and boosting investor confidence.
- Future Guidance: Ford's 2026 guidance projects adjusted EBIT between $8 billion and $10 billion, an increase from $6.8 billion last year, indicating the company's positive outlook for future growth and operational efficiency.
- Restructuring Plans: The automaker plans to record approximately $19.5 billion in special items starting in Q4 2025, primarily for restructuring business priorities and EV investments, which will have profound implications for the company's financial health.
See More
Ford Reports Strong Q1 Earnings but Faces Severe EV Segment Losses
- EV Segment Losses: Ford's EV division reported an EBIT loss of $777 million in Q1, significantly worse than expected by 36%, with projected losses of $4 billion to $4.5 billion for FY26, highlighting major challenges in its electric vehicle strategy.
- Overall Performance Boost: Ford achieved total revenue of $43.3 billion in Q1, a 6.4% year-over-year increase, with Ford Blue revenue rising 14% to $23.9 billion and EBIT reaching $1.9 billion, indicating strong growth in traditional business segments.
- Adjusted EPS Growth: The adjusted earnings per share for Ford stood at $0.66, a substantial increase from $0.14 in the same quarter last year, exceeding market expectations by $0.47, reflecting effective execution in cost control and profit enhancement.
- Optimistic Future Outlook: Ford raised its EBIT guidance for FY26 to $8.5 billion to $10.5 billion and expects free cash flow of $5 billion to $6 billion, demonstrating confidence in future financial performance despite ongoing pressures in the EV sector.
See More
Tech Giants Show Mixed Earnings Performance
- Google Earnings Beat: Alphabet reported first-quarter revenue of $109.9 billion, exceeding the $107.2 billion expected by analysts, with cloud revenue surging 63% year-over-year to $20.02 billion, indicating strong market demand and competitive advantage.
- Microsoft Spending Miss: Microsoft reported $31.9 billion in capital expenditures for its fiscal third quarter, falling short of the $34.9 billion consensus among analysts, although it posted earnings and revenue beats, reflecting a cautious investment strategy.
- Amazon Capital Expenditures Rise: Amazon's first-quarter revenue reached $181.52 billion, surpassing expectations, but capital expenditures totaled $44.2 billion, slightly above the $43.39 billion forecast, highlighting the company's ongoing expansion plans.
- Meta User Growth Misses: Meta's first-quarter capital expenditures were $19.84 billion, below the StreetAccount forecast of $27.57 billion, despite beating revenue expectations, indicating challenges in user growth.
See More
Ford Raises Annual Guidance by $500 Million Amid Tariff Refunds
- Annual Guidance Increase: Ford raised its projected earnings before interest and taxes for the year from $8 billion to $10 billion to a new range of $8.5 billion to $10.5 billion, primarily benefiting from a $1.3 billion tariff refund, although it faces rising raw material costs.
- Increased Tariff Costs: The company anticipates net tariff costs of $1 billion for the year, and while it did not disclose the gross tariff impact, rising aluminum costs due to major supplier Novelis's fires have significantly affected production.
- F-150 Production Decline: Inventory of the F-150 dropped 38% in April compared to the previous year, largely due to production disruptions from Novelis's fires, with analysts estimating a 12% year-over-year decline in F-Series production for the first quarter, exceeding expectations.
- Financial Performance Exceeds Expectations: Ford reported adjusted earnings per share of 66 cents for the first quarter, significantly surpassing analysts' expectations of 19 cents, resulting in a net profit of $2.5 billion and revenue of $43.3 billion.
See More
Stocks Pull Back as Oil Prices Rise, Impacting Market Sentiment
- Rising Oil Prices: West Texas Intermediate crude surpassed $107 per barrel and Brent crude exceeded $119, leading to a rise in U.S. gasoline prices to nearly $4.23 per gallon, up from $4.18 on Tuesday, indicating heightened market concerns over inflation.
- Fed Policy Divergence: The Federal Reserve maintained interest rates at its latest meeting, but for the first time, four officials dissented, reflecting internal disagreements on future monetary policy, which could influence market expectations regarding interest rate movements.
- Boeing Stock Decline: Boeing shares fell after Airbus secured a $21.37 billion order for 102 A320neo jets from China Southern Airlines, highlighting increased competitive pressure on Boeing in the Chinese market, although there remains potential for significant future orders.
- Earnings Season Approaches: Major companies like Amazon, Alphabet, Meta, and Microsoft are set to report earnings, with market focus on their performance regarding AI demand, supply constraints, and capital expenditures, with expectations that the four will collectively spend at least $608 billion this year to maintain competitiveness in the AI sector.
See More
Ford's First Quarter Earnings Expectations
- Earnings Forecast: Ford is expected to report adjusted earnings per share of 19 cents and automotive revenue of $38.82 billion for the first quarter, reflecting a stable performance with a 3.7% year-over-year revenue increase.
- Profit Growth: The adjusted earnings per share is projected to rise from 14 cents in Q1 2025 to 19 cents, marking a significant 35.7% increase, indicating improved profitability for the company.
- Restructuring Impact: Ford plans to record approximately $19.5 billion in special items starting in Q4 2025, including $7 billion for 2026 and 2027, primarily aimed at restructuring business priorities and EV investments, highlighting the company's strategic focus on future growth.
- 2026 Guidance: The guidance for 2026 includes an expected adjusted EBIT of $8 billion to $10 billion, up from $6.8 billion last year, suggesting a positive outlook for the company's financial performance moving forward.
See More
