Ford posted a strong first quarter as revenue and income climbed. Model e division is slowing losses, but still losing a ton of money. Automaker got a $1.3 billion refund for illegal US government tariffs. Ford’s U.S. sales dropped 8.8% in the first quarter to 457,315 units, but that didn’t stop them from having a solid Q1. Jumping right into the numbers, first quarter revenue was up 6% to $43.3 billion. More importantly, the company had a net income of $2.5 billion and an adjusted EBIT of $3.5 billion. More: Ford Sales Falter, Hurt By The Trucks It Counts On And The Model It Killed The surprising results are due, in part, to a “one-time IEEPA tariff benefit” of $1.3 billion. That’s a not so subtle way of saying Trump’s tariffs hammered the automaker, but they got a huge refund. Ford is also sitting on a $22.0 billion pile of cash and will reward stockholders with a 15 cent dividend on June 1. That’s not too shabby considering shares are hovering around $12. Digging deeper, Ford Model e is reducing its losses as the division only squandered $777 million. That’s still a ton of money, but it’s an improvement from the $849 million lost in the first quarter of 2025. On the flip side, Ford Blue made over $1.9 billion thanks to strong sales of gas- and diesel-powered models such as the Bronco, Explorer, and Expedition. The company also mentioned the “continued strength of F-Series,” despite the fact that Q1 sales tumbled 16% as the automaker is still dealing with the fallout from fires at an aluminum supplier. Ford raised their 2026 outlook and is now expecting an adjusted EBIT of $8.5-$10.5 billion, which is up from the original estimate of $8.0-$10.0 billion. The automaker also forecasts an adjusted free cash flow of $5.0-$6.0 billion and capital expenditures of $9.5-$10.5 billion, which “reflects its shift toward higher-return growth opportunities, including $1.5 billion for Ford Energy.” However, the automaker cautioned the “guidance does not include potential impacts of a sustained conflict in the Middle East or a significant downturn in the U.S. economy.” Both of those are real possibilities as the Strait of Hormuz remains closed, gas prices are soaring, and consumers are concerned. While there’s a lot to be worried about, Ford said they delivered $1.5 billion in material and warranty cost reductions last year and are aiming to cut another $1 billion in 2026. The Blue Oval went on to note 80% of their North American portfolio will be refreshed by 2029. This includes a new F-150 and F-Series Super Duty as well as their much-hyped mid-size electric truck.
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