The companies on the Global 500 employ 70.2 million people, and their revenue represents more than one-third of the world’s GDP.

Fortune Global 500

With a combined revenue of $21 trillion and $2.1 trillion in profits, the 2026 Fortune 500 is the definitive list of America's largest companies.

Fortune 500

The 300 companies on this year’s list brought in over $12.5 trillion in revenue for the latest 12 months, with the median revenue figure at $24 billion.

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The corporations on our annual list of the world's 500 largest companies combined to generate $41.7 trillion in revenue over the past year.

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G500-2023-Ford

For the fifth year in a row, Ford is the largest U.S. automaker by sales; it brought in $158 billion in revenue last year. 
<ul> 
 	<li>Ford dealt with slowed production as shortages of computer chips and other parts affected its vehicle assembly lines. It still hit some key goals, including producing its 150,000th Mustang Mach-E in November 2022.</li> 
 	<li>In March 2023, Ford announced the establishment of a subsidiary known as Latitude AI to develop automated driving systems. Latitude’s engineers are slated to collaborate with a team that previously worked at Argo AI, a joint venture among Ford, Volkswagen, and others that had shut down months prior.</li> 
 	<li>Ford reported a $600 million loss in China in 2022, where stiff competition from rivals such as BYD has cut into its performance. In May 2023, Ford announced that it would scale back investments and reduce costs across its Chinese operations.</li> 
</ul>

The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

F500 2023-Ford

For the fifth year in a row, Ford is the top automaker on the Fortune 500; it brought in $158 billion in revenue last year. 
<ul> 
 	<li>Ford dealt with slowed production as shortages of computer chips and other parts affected its vehicle assembly lines. It still hit some key goals, including producing its 150,000th Mustang Mach-E in November 2022.</li> 
 	<li>In March 2023, Ford announced the establishment of a subsidiary known as Latitude AI to develop automated driving systems. Latitude’s engineers are slated to collaborate with a team that previously worked at Argo AI, a joint venture among Ford, Volkswagen, and others that had shut down months prior.</li> 
 	<li>Ford reported a $600 million loss in China in 2022, where stiff competition from rivals such as BYD has cut into its performance. In May 2023, Ford announced that it would scale back investments and reduce costs across its Chinese operations.</li> 
</ul>

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F500 2022 Ford

After a difficult, pandemic-scarred 2020 marked by unit shutdowns, supply-chain issues, and a full-year loss in revenue, Ford Motor began slowly but steadily recovering in 2021. Revenue increased by 7.2%, and Ford’s total return to investors was 137.5% for the year. Even as it rebounded, Ford doubled down on an electric-vehicle future. It accelerated development of the Lightning F-150, an electric version of its bestselling pickup truck that analysts expect will be the first major EV pickup to hit the market when deliveries begin this year. The company is planning to invest as much as $20 billion in EV development over the next 10 years, and in March 2022 it announced that it would split into two units: Ford Model e, for EV manufacturing and development, and Ford Blue, for traditional internal combustion engine vehicles. Ford expects 50% of its global sales to come from EVs by 2030.

Total revenue for the world’s biggest companies fell 4.8% to $31.7 trillion this year—the first decline in half a decade.

G500-2021-047-Ford Motor

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This year’s Fortune 500 marks the 67th running of the list.

F500-2021-21-Ford

This year's Fortune Global 500 generated $33.3 trillion in revenues and $2.1 trillion in profits.

G500-2020-031-Ford

Despite a $4.4 billion decline in revenues, Ford retains its position as America’s largest carmaker by revenue for a second consecutive year. The perennially strong performance of its F-series trucks is sustaining the company through an awkward transition in its passenger car lineup. In the next year, investors will be keeping an eye on market adoption of its electric Mustang Mach-E as well as the newly reborn Bronco SUV.

This year's Fortune 500 marks the 66th running of the list.

F500-2020-012-Ford-Motor

Despite a $4.4 billion decline in revenues, Ford Motor Co. retains its position as America’s largest carmaker by revenue for a second consecutive year—the first time it has done so in the history of the Fortune 500. The perennially strong performance of its F-series trucks is sustaining the company through an awkward transition in its passenger car lineup. In the next year, we’ll be keeping an eye on market adoption of its electric Mustang Mach-E as well as the soon-to-be-announced rebirth of the Bronco SUV.

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This year's Fortune 500 marks the 64th running of the list.

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Nike, Cisco, MasterCard, SABMiller, Vodafone, Google—and 45 other companies that are doing well by doing good.

Change the World

Global business is back. After limping through a worldwide financial crisis and economic slowdown, the 500 largest companies ranked by revenues shattered all sorts of performance records in 2013: They racked up combined revenues of $31.1 trillion, up 2.5% from 2012, and profits soared 27% to nearly $2 trillion. China’s 95 companies (up from 89 last year) posted $5.8 trillion in revenues. The U.S. has four fewer companies on the list than last year but remains (for now) the country leader, with 128 corporations on the list—including No. 1 Wal-Mart Stores—reporting $8.6 trillion in revenues. 

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

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Ford Motor, founded in 1903, was the second-largest automaker by revenue in the U.S. in 2024. It manufactures cars, trucks, and commercial vehicles, and owns the luxury car brand Lincoln. Ford entered the electric vehicle market in the late 1990s with its Ford Ranger EV and has since expanded its EV lineup to include the F-150 Lightning pickup truck, the Mustang Mach-E SUV, and E-Transit electric commercial van.

Q2 2026

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Q2 2025

Q1 2025

Q4 2024

Ford Motor (F): Company Profile, Stock Price, News, Rankings

legacy

Ford Motor

ford motor

Good day, everyone. My name is Layla, and I will be your conference operator today. At this time, I would like to welcome you to the Ford Motor Company first quarter 2026 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, please use the raise hand function, which can be found on the black bar at the bottom of your screen. At this time, I would like to turn the call over to Lynn Antipas Tyson, Chief Investor Relations Officer.

Thank you, Layla, and welcome to Ford Motor Company's first quarter 2026 earnings call. With me today are Jim Farley, President and CEO, and Sherry House, CFO. Joining us for Q&A is Andrew Frick, President of Ford Blue and Ford Model e, Alicia Boler Davis, President of Ford Pro, Kumar Galhotra, Chief Operating Officer, and Cathy O'Callaghan, CEO, Ford Credit. Jim will give a high-level overview of the business, and Sherry will provide added texture on the financials and guidance. We'll be referring to non-GAAP measures today. These are reconciled to the most comparable U.S. GAAP measures in the appendix of our earnings deck. You can find the deck at shareholder.ford.com. Our discussion also includes forward-looking statements. Our actual results may differ. The most significant risk factors are included on page 19 of our deck.

Unless otherwise noted, all comparisons are year-over-year, company EBIT, EPS, and free cash flow are on an adjusted basis. Upcoming IR engagements include Navin Kumar, CFO of Ford Pro, at the Deutsche Bank Global Auto Industry Conference in New York on May 19th. Now I'll turn the call over to Mr. Farley.

Thank you, Lynn. Thanks to all of you for joining us. I wanted to thank the Ford team, all of our dealers and our partners for a strong start to this year. Our results this quarter, $43.3 billion in revenue, $3.5 billion in adjusted EBIT, reflect a sharp execution and the momentum we're building for our Ford+ plan. Accordingly, we're raising our full-year adjusted EBIT guidance to between $8.5 billion and $10.5 billion. These results are encouraging, but the bigger story is the modern Ford that's now taking shape. For five years, we have relentlessly built the foundation of Ford+. We strengthened our industrial system, made real progress on quality cost, and advanced our software capability and customer experience.

Earlier this month, we took the next step in that evolution by establishing an end-to-end organization, product creation and industrialization. We unified our advanced technology, digital, and design teams with our global industrial system. This change aligns with the most intensive product and software rollout in our history. By 2030, almost all of our global volume will feature next-generation electric architectures and in-house software. This applies to every propulsion type as we deliver and scale high-quality software-defined vehicles. This new organization allows for faster decision-making and reduced complexity. This is the moment we integrate the digital soul of the vehicle, the software or the silicon, and the user experience with our world-class industrial execution. Among other things, this alignment will support our high-margin software and physical services revenue, which was over $15 billion last year.

We expect to grow that $15 billion nearly 8% annually through the end of the decade. This service growth is driven by offering customers indispensable digital experiences and investing in aftermarket sales with a focus on customer uptime, expanding our parts catalog, and enhancing our service network. We're also leaning into the Skunk Works model to improve all of Ford. They've done an incredible job creating the UEV platform, which represents a step change in efficiency and cost, especially for the EV market. At Ford, we're now integrating these Skunk Works breakthroughs back into our mainstream products and processes. We're applying their advanced tools and physics-based cost modeling to the highest volume internal combustion and hybrid lines. This, of course, will reduce our costs and improve quality across the board. Our product pipeline is aggressive.

Between now and 2029, we will refresh 80% of our North American portfolio and 70% of our global portfolio by volume. This includes the next generation F-150 and Super Duty, among many others. It also includes the launch of our universal EV platform in 2027 from our Louisville Assembly Plant in Kentucky. We are scaling that plant for significant volume to accommodate a variety of vehicles off that single platform. Speaking of electrification, our strategy remains focused on powertrain choice, not nameplate complexity. By the end of the decade, 90% of our global nameplates will offer electrified powertrains, including advanced hybrids, extended range electric vehicles, and full EVs. Our financial health is driven by a leaner, more effective industrial system. We are on track to deliver another over $1 billion in material and warranty cost improvements this year. We will never stop.

Our focus on quality is paying off. J.D. Power recently ranked Ford number four in the 2026 U.S. Customer Service Index, our best performance in 30 years. Finally, we remain resilient in the face of global uncertainty regarding the conflict in the Middle East. Of course, our priority is our team and the safety of them. We're monitoring the situation and working to minimize risk and find opportunities in much the same way we have navigated the pandemic, the semiconductor shortage, tariff headwinds, and others. We have the muscle memory to find cost offsets, adjust our product mix quickly, and proactively manage our supply chain in times of stress and crisis. My main message today is this: Ford is a fundamentally stronger, more modern company. We have a foundation built on industrial fitness.

We have the technology, and we now have the unified organization to not just deliver but to compete to win. Ford is focused on execution, quality, and thrilling our customers. Over to you, Sherry.

Thank you, Jim, and hello, everyone. Before I walk you through the details of our performance this quarter, let me start with a few items I know are top of mind for you. First, in Q1, we recognized a $1.3 billion benefit related to IEEPA tariffs. This one-time adjustment largely benefits Ford Blue and Ford Pro at about $700 million and $500 million, respectively. They are related to IEEPA tariffs paid between March 2025 and February 2026. Second, our Novelis recovery is progressing as expected. We still expect a $1 billion improvement in EBIT year-over-year, weighted towards the second half. This is net of $1.5 billion-$2 billion of one-time incremental costs to secure alternatively sourced aluminum until the Novelis facility is operating at full throughput later this year.

Third, relative to U.S. inventory, we expect to remain within our target of 55-65 retail days supply for the year. F-Series sales remain healthy as inventory recovers from the Novelis supply disruption. America's best-selling truck delivered year-over-year retail share improvement of 30 basis points in March. We are carrying that momentum into Q2. Our team is effectively managing tight retail days supply by helping dealers fill inventory gaps while ensuring high-demand trim levels are in ample supply. We are also producing a richer mix of product as we continue to ramp Novelis. Importantly, on average, we are spending less on incentives than our competitors. In fact, for the quarter, F-150 had the highest retail share, highest average transaction price, and the lowest incentive spend per unit versus our key competition. Now, turning to the quarter.

We delivered adjusted EBIT of $3.5 billion, or $2.2 billion excluding the impact of the IEEPA. The strength in the quarter versus our original guidance was primarily supported by a change in calendarization of cost improvements and timing of investments, growth in software and physical services, and higher net pricing. Our global revenue grew by over 6% despite a nearly 4% decline in volume, which was expected as we exited low-margin products like Escape in North America and Focus in Europe. In the U.S., we had our highest Q1 share of revenue in five years, led by large utilities and trucks. Adjusted free cash flow was a use of $1.9 billion in the quarter, more than explained by unfavorable timing differences, higher net spending, and changes in working capital.

On a full-year basis, we expect timing differences and working capital to be favorable. Our balance sheet is strong, with $22 billion in cash and over $43 billion in liquidity, and we remain committed to our investment-grade rating. We repaid our convertible debt without refinancing it and also relaunched our anti-dilutive share repurchase program, which we completed in the quarter. Earlier this month, we successfully renewed our $18 billion corporate credit facilities for another year. Our strong liquidity position provides us with the flexibility to manage in this dynamic environment and invest in higher-return growth opportunities like Ford Energy. It also allows us to pay consistent shareholder distributions. In fact, yesterday, we announced a declaration of our second quarter regular dividend of $0.15 per share, payable on June first to shareholders of record on May 12th. Now turning to segment highlights.

Ford Pro achieved EBIT of $1.7 billion against the backdrop of Novelis-related production disruptions. Ford Pro continues to deliver higher margins through a powerful ecosystem of vehicles, software, and physical services. We are scaling rapidly and increasing recurring revenue, which bolsters resiliency. In fact, paid software subscriptions grew to 879,000, a 30% year-over-year increase. By integrating innovations like Ford Pro AI, we can help commercial fleet managers instantly identify maintenance needs. Leverage large data models and fuel usage to lower costs and optimize routes, amongst other features, all designed to provide better predictability, productivity, and profitability which our customers require. As we look ahead, the 2027 model year order books are just starting to open, and we are seeing positive early indicators.

Ford Blue delivered $1.9 billion in EBIT, supported by the sustained sales performance of F-Series and go-to-market discipline, evidenced by Q1 incentive spend below industry average. Our off-road performance trims now account for nearly a quarter of U.S. sales, and Maverick and F-150 continue as the best-selling hybrids in their segments. Importantly, Ford Blue's Q1 performance highlights the strength of the underlying business, and excluding IEEPA, is representative of its ongoing run rate. For Ford Model e, EBIT was a loss of $777 million as we now start to benefit from the portfolio changes announced in December. In addition to investing in a leaner, more profitable portfolio, we are actively matching supply with demand globally to optimize profitability. In the quarter, we benefited from a nearly 35% improvement in our Gen1 losses.

We also continue to step up our incremental $1 billion investment in UEV platform and Ford Energy as we progress throughout the year, ahead of their launches in 2027. We expect first quarter to be the strongest quarter for Ford Model e this year. Ford Credit delivered a solid quarter with EBT of $783 million, up $200 million, reflecting improvements in financing margin and enabled by a high-quality book of business. Results also benefited from favorable performance on our derivatives. Our portfolio performance is strong, we maintain a highly disciplined approach to capital reserve and risk management practices. Let me turn to our 2026 outlook.

For the full year, we now expect company-adjusted EBIT of $8.5 billion-$10.5 billion, adjusted free cash flow of $5 billion-$6 billion, and CapEx of $9.5 billion-$10.5 billion, which reflects our shift toward higher-return growth opportunities, including $1.5 billion for Ford Energy this year. Our guidance does not include the potential impacts of a sustained conflict in the Middle East or a significant downturn in the U.S. economy, which could have a material impact on industry demand.

Our full-year segment outlook stays steady with Ford Pro EBIT of $6.5 billion-$7.5 billion, Ford Model e losses of $4 billion-$4.5 billion, Ford Credit EBT of about $2.5 billion, and for Ford Blue, we have increased our guidance by $500 million to $4.5 billion-$5 billion, driven by a stronger underlying business. Our guidance continues to assume a U.S. SAR of 16 million-16.5 million units in flat industry pricing. Some context and important puts and takes for the year. We have the $1.3 billion one-time IEEPA tariff benefit. We now expect commodity headwinds of just above $2 billion, about $1 billion higher than our previous estimate, largely due to higher aluminum pricing driven by global supply constraints.

Note, though, this excludes Novelis-related aluminum costs. The impact of ongoing tariffs is unchanged at about $1 billion and is now a part of our run rate costs. This excludes the IEEPA benefit and Novelis temporary costs. As Jim mentioned, we're on track for $1 billion improvement in material costs and warranty reductions on top of the $1.5 billion of cost reductions we delivered in 2025. We continue to expect a net $1 billion improvement from the Novelis recovery and, as I mentioned earlier, about $1 billion of incremental investment in Ford Model e to support the ramp of UEV platform and Ford Energy. Our Q1 performance highlights the benefits of our Ford+ priorities, rigorously optimizing revenue across every segment through leading products and high-growth services, improving operating leverage, and exercising smart, accretive capital allocation decisions.

The increase in our full-year adjusted EBIT guidance underscores these benefits. Thank you. I'll now turn it over to the operator so we can take your questions.

If you would like to ask a question, please use the Raise Hand function, which can be found in the black bar at the bottom of your screen. To leave time for as many questions as possible, please limit to one question. Your first question will come from Joseph Spak with UBS. Your line is now open. Please go ahead.

Good afternoon, everyone. Sherry, maybe just to pick up right up on the commodity increase, you mentioned about $1 billion. Just trying to contextualize what you're assuming here, because I think in the past you talked about, call it an $8 billion steel aluminum buy. I think 40% of that's aluminum. You know, there's been some hedging, and this is really only nine months. I know prices have really gone up, but it looks like a pretty big number, so I just wanna help understand what you're thinking for the balance of the year, and then, you know, how you would advise investors to sort of think about that rate heading into 2027.

Sure. It's gonna be a bit hard to be able to predict 2027 at this point given the volatility that we've seen in the commodities, but let me just tell you in the near term what I'm seeing. With respect to steel and aluminum, you know, in particular, even before the Middle East situation started, we were already seeing global industry shortages, and that was first. You had the Middle East, and then you have to remember that Ford also has the aluminum supply shortage with respect to our primary aluminum supplier, which is Novelis. These costs are not related to Novelis. We package those separately. We talk about those separately. When I talk about a $1 billion year-over-year improvement due to Novelis, that includes all the tariff costs.

This is related to the exposures that we have in aluminum and steel predominantly.

Okay. I guess just a second question maybe, is there any update you could provide us on the Novelis timeline? I mean, I think it, you know, there was some preliminary thought it could come online in the summer. Are we sort of on track there? If that, if that happens, how are you thinking about that headwind you mentioned? I'm just trying to sort of figure out the, the phasing timing because, you know, I guess my prior assumption was that most of that Novelis headwind would've been more in the first half if it was sort of expected to ramp through the year. I'm not quite certain that that's sort of still the case. Maybe you could just help us with some of that cost phasing time.

Joe, this is Kumar. Your assumption's correct. We are still expecting the hot mill to restart in May. There are two aspects of to bringing any mill back online. There's the restart itself, and then there's the ramp up. All the enablers for both of these aspects are on track. In the event the relaunch doesn't go according to plan, we do have contingency plans in place. That means we have additional aluminum supply to ensure our plant production schedules aren't interrupted. The mill should be back online, and if we have any hiccups, we have contingency plans for the rest of the year.

Joe, as you would expect at ship, we have by grade, we have several grades, by step in the process. We track it every day. We know exactly the situation we have, the float we have. We also have learned how to back up the aluminum supply, as Kumar said, in case the mill ramps slower or the actual start date is later.

Your next question will come from Dan Levy with Barclays. Dan, I see you have unmuted. Please go ahead.

Okay, thanks for taking the questions. We know within the guidance that effectively the IEEPA refund is being offset by the raw mats, so really the net of the guidance improvements coming from improved operations. The improved operations beyond the warranty material, which looks like that's consistent. How much runway do you have on this? Can this offset any increases in raw mats that you might be seeing in 2027, just given the staggering of costs that are gonna be hitting?

Yes, as we look at, you know, kind of what's basically the basis of our billion-dollar raise versus guidance, it's gonna be software and physical services is one of the biggest components there. You know, the Ford Pro business continues to have very high paid subscribers. We now are up at 879,000, as I said in some of our prepared remarks. That's 30% on a year-over-year basis. The enterprise is also doing quite well across the physical services and the software. The other item that was really big for us in Q1 was the net pricing. As we said, you know, the share of revenue highest in five years. You know, this was really led, as we said, by full-size utilities and trucks.

We did have some timing differences in cost, so some items hit in Q1 that we were expecting to hit in Q2, and that was very favorable for us. When we took all that underlying performance into consideration, we felt that if half a billion dollars was the amount to be able to pull through for the full year, and that's why our guidance reflects that.

Your next question will come from Andrew Percoco with Morgan Stanley.

Great, thanks so much for taking the question. I did wanna come back to the guidance here, and maybe I'm missing some of the moving pieces, but if I just look at your first quarter performance, $3.5 billion of adjusted EBIT, I think you had been essentially signaling sequentially flat, which would've been like $1.1 billion for the first quarter. You essentially beat like $2.5 billion in the first quarter of which a little bit over $1 billion is from IEEPA. That would imply, like even though that's offset by some incremental cost headwinds on the commodity side, it would imply downside or some incremental costs elsewhere if your guide's only increasing by $500 million.

Can you maybe just help us break down some of those moving pieces in case I'm kind of missing anything in that bridge?

Yeah, I don't think you're missing anything in the bridge. It's just as I said, you know, we had the three components that were really driving this performance, and we're pulling through the amount of it that is sustainable. Some of it was timing differences, so we didn't want to put timing differences into a guidance raise.

Okay, got it. Then, Jim, maybe one for you. You know, there's been a lot of headlines recently around some potential partnerships between Ford and some of the Chinese OEMs. Even outside of Ford, there's just a lot of focus in the marketplace around some of these vehicles coming out of China eventually potentially making their way into the U.S. Can you just give us your updated thoughts on what that could look like and maybe any involvement that you might be interested in doing there?

Sure. I'm sure glad there is a lot of focus on it. As America's largest auto producer, we are totally dedicated to a thriving U.S. auto industry and of course safeguarding our country's industrial base, and that's just not economic vitality, it's also national security as a country. When we see China and Japan and South Korea, they've really prioritized their domestic auto industry and manufacturing for these same reasons that I mentioned. I would say, to answer your question, we leverage global partnerships and even IP sharing, including with the Chinese OEs to grow our business around the world. But we are really fully committed to a level playing field here in the U.S. and also safeguarding our home market because of the importance of the auto industry and our industrial base, you know?

How I would think about it is Ford continues to be a global company. We want to have the rights to win around the globe. We need IP and partnerships outside the U.S. to do that. When it comes to the U.S. industry itself, we are extremely protective, as we should be, like China, South Korea, and Japan are. What that means in specific policies, that will play out in our strategy as a company. As America's number one auto producer, you can understand our perspective.

Your next question will come from Alex Perry with Bank of America.

Hi. Thanks for taking my questions here. In the materials I thought it was interesting, I think you said the off-road performance trims account for 25% of the overall sales mix. Can you give us a little bit more on the strategy here and a little more color on how this has trended historically? Is the strategy to prioritize some of these higher margin trims while production remains constrained? Maybe just remind us on the profitability of some of these off-road trims versus company average. Thanks.

Thanks. This is Andrew. Thanks for the question. Yes, that is part of our strategy. It's a big piece of why our Ford Blue business is doing well overall. In fact, if you look at our wholesales this past quarter in the first quarter, they were relatively flat, but we had an improved mix of Explorer, Expedition. We phased out Escape. We're in the sell down of that, our F-Series remains strong. We actually grew our share in the off-road space 25% of our volume, but our share actually grew by 0.7 of a point, which was really important. That's because we're able to lean into across multiple vehicles now, series like Tremor and Raptor, and really drive those mixes.

It is relatively more profitable, and it all plays back to our overall strategy of leaning into our profit pillars and winning with passion products.

Perfect. Really helpful. Just a follow-up on commodities, can you just remind us how you're sort of hedged across the various commodities? With the $2 billion, you know, commodity headwind, does this assume that prices sort of stay where they are today, so if they were to come down, this would provide a little bit of cushion in the guide?

Yes. The forward forecast that we gave you, the guidance we gave you assumes that they stay where they are, which, as you would know, the forward curves are up. We have a large number of contract types that we use. We have, in some cases, we have fixed, you know, fixed costs, contracts, multi-year contracts. We have a lot of contracts that are based on indices. The impact is a quarter lagging. You're gonna have a range there. We also look at natural hedges that we have in our business as well. When we look to hedge, we're taking the entire portfolio into consideration. We feel that we've got a pretty good handle to be able to provide you know, what we did in terms of commodities for the balance of the year.

If they go up substantially from here, we obviously would be back sharing that with you. You're right, if they go down, that will be a net positive to the business.

Perfect. Incredibly helpful. Best of luck going forward.

Your next question will come from Mark Delaney with Goldman Sachs.

Yes, good afternoon. Thank you very much for taking the questions. I was hoping to start on the comments the company spoke about in its prepared remarks on software and physical services. I think you said you expect the $15 billion of revenue coming from those areas to grow at a nearly 8% rate annually through the end of the decade, which is a pretty good outlook over several years. Can you help investors to better understand what's driving that degree of revenue growth over the coming years? More importantly, what does that mean for EBIT?

Sure. You know, this has been a critical part of our path to 8%. We've been planning for many years. As you can imagine, before I answer your question directly, we've had to invest a lot in our advanced electric architectures, and our dealers had to invest a lot in dealer capacity for the service. Really, our focus is on two key areas. We have a lot more focus than these two, but these are the ones driving our business. The first is our after sales parts business. This is a really key focus for the Ford team. We see growth in Pro. Our dealers are massively investing in capacity for Pro. We are also becoming a lot more successful in wholesaling parts from our dealers to third-party repair shops throughout the U.S.

As I mentioned, we're gonna expand our parts catalog in terms of price and diversity, and we're gonna start to focus on not just Ford parts, but multi-make parts. I think the other key distinguishing element for Ford is that we have started to really get good at remote service. Almost 20% of all Ford's repair now is done outside the dealership at our customer's location. For our Ford Pro customers, they're especially excited about this because they don't have to come into the dealership, and this has really expanded our revenue on after sales. Inside the company, we're very focused on improving our repair order duration. That gives our dealers more capacity, so to speak, without having to build any more capacity.

I think you know our growth in ADAS, our growth in Pro Intelligence that Sherry mentioned are both signature parts of our integrated services that seem to be growing about 30%-40% a quarter with very high margins. When you look at the margins of the part business and the software business, this $15 billion that will be growing at 8% is highly profitable for the company. It also has a different revenue risk than our vehicle business. It's more of an annuity, and a lot of it tends to be anti-cyclical. That means that when the car business goes down, people tend to repair their vehicles. So this fitness we're developing on the parts side will help us on the anti-cyclical side.

You know, that gives you, I think, some window, and hopefully we'll be giving you more and more insights as to our ADAS strategy, and Pro Intelligence product rollout in the coming years.

It's very helpful. My other question was on the pickup market. Ford obviously has a very strong franchise in that segment with the F-Series, but you've also spoken to adding more product with the UEV-based pickup model coming in, and then also the ICE truck you've talked about coming out of the Tennessee factory. We've also seen competitors lean into that segment more. As you think about all the new models coming into the pickup space, maybe talk more on how much of the market you think pickups can make up in the future. As you think about more supply coming into pickups, what are implications for profit margins in that important category? Thanks.

Yeah, thank you for the question, Mark. This is Andrew, I think it's important when you talk about the truck business maybe to look at it through the lens of both retail and commercial, because they're both really important parts of those of both customer groups. On the retail side, you know, the truck business has historically been with the full-size pickup and medium pickup, what we've been able to do is really expand that the pickup segments themselves. Maverick has created a whole new segment. We've been able to really take advantage of that. In fact, it's, if you look at the trends in the market, you've seen a lot of car buyers go into truck and even utilities go into truck.

We think that trend will continue, especially with the type of packaging that we're going to be able to provide. It worked on Maverick. We are really excited about the UEV pickup and the packaging that has to really appeal to not just truck buyers but to source from SUV buyers as well. We see the pickup market growing. It's really growing across segments and price points on the retail side. Alicia, maybe on the commercial side.

On the commercial side, I would just ask, I'll just comment similar to what Andrew said. We have commercial buyers that buy pickup trucks from Maverick size all the way up to our F-750, and we have products in those segments, and we also have diverse powertrains, and we see that continuing to grow. We continue to have strong orders for 2026 right now from fleet customers, and we continue to see we just opened our 2027 model year order books, and we're seeing some early indicators. We know the demand is there, is strong, and we wanna make sure that we have offerings from the very beginning, Maverick, all the way to the higher pickup trucks.

How we like to think about is that we wanna future-proof our truck business. To do that, we want to offer customers more choice on the powertrain side and tie the powertrains to other benefits that a truck customer would want, like a hybrid for Pro Power Onboard. And part of protecting is not just having an affordable electric pickup or hybrid throughout our lineup, but it's also having a flow of customers that move through our lineup over time. On the Pro side, it helps us with adjacency sales, but on the retail side, those Maverick, those UEV sales, they are a juggernaut for loading our whole pickup business and the strength over time, because we haven't seen our competitors invest like we have. I think the other thing that gets maybe overlooked about Ford's pickup strategy is their global strategy.

Ford is really number one or number two in most markets around the globe. There are large pickup markets in Thailand, Africa, the Middle East, and South America, and Ranger is number one or number two in every one of those segments, and we are future-proofing those lineups now as we speak with different powertrains and even more affordable options. This is critical because we're seeing new competition in those markets from the Chinese. Our pickup strategy is a global strategy. We're trying to learn from the past where we're trying to, you know, future-proof it in a way from oil shocks or movement of powertrain to actually price points.

Your next question will come from Emmanuel Rosner with Wolfe Research.

Great. Thank you so much. Could you give us a sense of expected cadence of earnings over the rest of the year, and in particular, maybe drivers of, you know, the much lower pace of earnings over the rest of it? With having done $3.5 billion In the first quarter, that means you're guiding at midpoint for $6 billion combined over the next $3 billion, which is, you know, quite low, I guess, by historical standard. I understand that, you know, commodities, you know, is obviously gonna get sequentially quite a bit worse, I would have thought the Novelis cost, you know, would also, you know, start going away in the second half. Maybe some of the puts and takes in the cadence, please.

As you move into the next half, obviously one of the big things is you're not gonna have the repeat of IEEPA, so that's $1.3 billion. Positive, as you said, with respect to Novelis as we start to gain more volume, we are gonna be hit more as we're more towards the end of the year on commodities, as I alluded to earlier. Also, the other thing is we are investing more in our launches right now, and that's gonna be in BESS, our battery electric stationary storage business, the UEV platform, and also Oakville in Canada. We have those investments that are going in and ramping as we exit the year, and there's cash elements of that too, not just CapEx.

That, and commodities, non-repeat of IEEPA, but then the positive is Novelis.

Okay. cadence-wise, sorry, I have another, a follow-up question. Any sense on, is the degradation mostly in the second half, or is the second quarter ex IEEPA also, you know, quite a bit lower?

You know, fairly consistent, I would say. Yes, it's Q2, you know, Q3, and Q4.

Okay. My second question is on free cash flow. Can you give us a bit of color on why free cash flow was almost a burn of $2 billion when EBIT was quite robust even ex IEEPA? I think most importantly, in the guidance, you're not flowing through any of the improved EBIT to the fully to the full year free cash flow guidance, even though it seems to be driven by better underlying performance. Why is that?

Yeah. Let me hit your first question first. With respect to the $1.9 billion usage in the quarter, it's very typical for us as you move from Q4 to Q1 to have a usage of cash, and that's because of the higher working capital that is needed. We're typically at that point, you are drawing down on inventory. You're not typically producing as much the last couple of weeks of the year. That was amplified for us with the Novelis disruption as well, and you're paying out your payables. You're gonna have that negative start. In addition, for us this quarter, our net spending was up. As I said, we're investing in our future.

We've been really transparent about $9.5 billion-$10.5 billion this year. You're spending on UEV, you're spending on BESS, we're spending on the future. Also, there's timing differences in there, and we pay our compensation, you know, bonuses in Q1. You also have timing differences associated with marketing incentive spends that are taking place as well. Those are the big components. We do expect this to reverse. We do expect our free cash flow guidance to stay at $5 billion-$6 billion. The big change, as you know, was the IEEPA tariff of $1.3 billion. That we don't have certainty as to when that is going to come in. We did not put that in the guidance at this time.

If we get certainty that that's gonna be sooner, then we will certainly update accordingly, and we thought it's a little bit early to be pulling through some of the other cash items given some of the volatility that we're working through.

Our next question will come from Edison Yu with Deutsche Bank Research.

Hey, thanks for taking our question. Wanted to come back to something that Andrew Frick mentioned earlier about, you know, the U.S. industrial base. How sensible or how realistic is it for Ford to play a bigger role in the kind of defense complex in, you know, in terms of supplying The Pentagon?

Well, thank you for your question. As the most American company, Ford has always called the answer to duty, you know, to support our country. It was ventilators and COVID, of course, the arsenal of democracy. As you know, we are very successful with our government sales in business and Pro. We have very close relationships through the vehicle side. What I'd be able to say at this point is two things.

First of all, we are in early discussions with the U.S. government on some defense-related projects. We're not gonna go into details of those today. In addition, and I would say equally important, is Ford's role as an anchor customer on onshoring critical minerals, and many other supply chain vulnerabilities we have in our country. I think you should expect Ford to play an outsized role in manufacture-grade semiconductors, critical minerals like batteries and rare earths. Our supply chain is heavily engaged not only with our government, but new companies that are starting to emerge in our country to onshore some of this capability. I think maybe perhaps in the short term, that's the biggest role Ford can play in, you know, helping our country.

Understood. Understood. Separate topic, just coming back to autonomy, it seems in robotaxi there's a lot more appetite now for some of these tech companies like Uber and Waymo to sort of quasi subsidize the OEMs. Has your kind of thinking about robotaxis maybe evolved over the last, you know, three or four months?

I would say yes. Not just over the last three or four months, it's something we've been frankly watching carefully as it evolves because we were involved in Argo and are very well aware of both managing the fleet and the SDS system itself and the progress. We kind of knew from Argo what to look for as robotaxis became, the SDS itself became more proficient, and we're starting to see that now. I think how you should think about Ford's approach, is that we are completely focused on having the most efficient EV and the lowest cost of ownership in North America, number one. Number two, because of our Pro business, we have the most fit repair and fleet management capability for new fleets, all fleets. That capability can be applied to all sorts of different fleets.

That's how we think about the market as it emerges. You know, I think that's all we're prepared to say at this point.

Your next question will come from Ryan Brinkman with JPMorgan. Ryan, your line is now open. Feel free to unmute.

Thank you so much. Thanks for taking the question. Is there an update you might be able to provide on the relatively recently announced Ford Energy business? Has there been maybe proactive outreach to Ford from companies that you have existing B2B relationships with on the Pro side of the business? You know, how would you characterize that interest and maybe just remind on potential timing there.

Thank you, Ryan. Well, as you know, we are committed to over 20 GWh of capacity starting in the fourth quarter of next year. That'll be mostly Kentucky One and a little bit of Marshall. Marshall will be really focused on UEV, but has some capacity for our energy business. That's the timing, starting fourth quarter next year. The plants are coming online. We are on track in the industrial manufacturing capability of doing DC block. It's not just the batteries themselves, it's the containers, it's the management of the battery. That's all coming together as we expected. We are very active in contracting customers as we speak.

We've had a lot of inbounds and a lot of interest in Ford because they understand that we have the best tech, we have a lot of advantages financially, and we have a great service and sales capability. Of course, the company has deep relationships with a lot of these as vehicle customers. They know us. They know through Pro that we're a reliable company. All I would say, Ryan, is that the energy business is the key element of our bridge to 8% margin.

Great. Thanks. Then just as my follow-up, you know, around the same time that Ford Energy was announced, you also broke news of the new strategic partnership with Renault. I was just wondering if there might be any kind of update you can provide there too, given that the first vehicles that were announced were electric vehicles, and I think that's an important, you know, piece of solving the puzzle in Europe. I met with Hans Schep during the quarter. He's super energized about, you know, Renault on the commercial vehicle side in Europe. What do you think the broader potential for collaboration there might be?

Thank you, Ryan, for your question. It's very pertinent. At this point, all we would say is that we believe that on the passenger car side, Renault has fully cost competitive platforms. We intend to take advantage of that as Europe continues to electrify amidst the Chinese competition on passenger cars.

On commercial, we have a very successful relationship, as you know, with Volkswagen, both on the pickup and the van side. You know, we have nothing to announce today, but certainly, John, myself, and the whole team are very focused on taking advantage of the Renault relationship across all of our businesses. You know, our commercial business at this point is still very profitable in Europe. We see it as the core of our profitability in the future on the vehicle side. We will do everything we need to to maximize our scale and our cost advantage on commercial in Europe.

Our next question will come from Colin Langan with Wells Fargo.

Great. Thanks for taking my questions. Just if I'm looking at slide 10, there's $900 million of other. It's kind of unusual to have such a large item. Any color on what that is? Then also looking on that slide, cost is only $700 million positive, and it includes the IEEPA. I think the target is that you're supposed to get $1 billion of cost benefit for the year, which would mean underlying costs is actually worse year-over-year in Q1. What is driving the weaker Q1 cost?

Well, first off, let me just hit on your question on other. That's really related to services, both physical and software. That's where that's showing up.

You had $900 million of software, right? EBIT?

—compliance benefits, services, physical and software credit as well.

Okay. Then the cost piece, is that just the cost savings pickup in the second half of the year?

Ford Motor (F) Q1 2026 Earnings Call Transcript

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