• Ford reports first-quarter revenue of $42.8 billion, net income of $1.3 billion, and adjusted EBIT of $2.8 billion
• Revenue from Ford Pro commercial customers jumps 36%, EBIT more than doubles, with high demand for Super Duty work trucks, Transit vans and software/physical services
• Ford Blue’s strong global product lineup includes new versions of F-150 and Ranger trucks; hybrid volumes on pace for 40% full-year growth
• Company declares second-quarter regular dividend of 15 cents per share
• Full-year adjusted EBIT tracking to high end of $10 billion to $12 billion; adjusted FCF target raised to $6.5 billion to $7.5 billion; CAPEX guidance tightened to $8 billion to $9 billion

DEARBORN, Mich., April 24, 2024 – Ford’s first-quarter 2024 operating results provided more evidence that its segmented, customer-centered strategy is delivering growth and profitability, sharpening capital efficiency and fortifying business durability.

“Customers want vehicles that they’re passionate about, choices in how they’re powered, quality that’s constantly getting better and great value,“ said President and CEO Jim Farley.  “With Ford+, we’re increasingly giving them all those things in ways that others don’t and creating a company that will lead for the long haul.”

Nowhere is that momentum more apparent, said Farley, than in Ford Pro, which helps commercial customers improve the productivity of their organizations.

Company Key Metrics Summary

“The Ford Pro team is growing volumes, revenue and profitability – including EBIT margin – and services capabilities,” he said.  “We’re seeing real evidence of what’s possible for customers and the company across all our segments, and applying what we’re learning about things like mobile services and value-added software to our retail businesses.”

Relatedly, a new Ford brand campaign is showcasing the company’s distinctive commitment and ability to suit the needs of almost every customer through “Freedom of Choice” across a lineup of high-performing, high-volume gas, hybrid and electric vehicles.

Ford’s revenue for the 2024 first quarter was $42.8 billion, up 3% year-over-year even as vehicle shipments declined slightly.  The company has increased revenue in each of the past three years and expects to do so again in full-year 2024.  Net income for Q1 was $1.3 billion; adjusted earnings before interest and taxes, or EBIT, totaled $2.8 billion.

Operating cash flow in the period was $1.4 billion; adjusted free cash flow was a use of
$500 million.  Both reflected working capital effects from about 60,000 vehicles that were in inventory at the end of the first quarter, but are expected to be shipped in Q2.  CFO John Lawler said that the company’s balance sheet remains “rock solid,” with $25 billion in cash and nearly $43 billion in liquidity at quarter-end.

Ford’s continued strong performance and disciplined capital allocation enable the company to fund Ford+ initiatives while also meaningfully returning capital to shareholders – the latter at a targeted rate of 40% to 50% of adjusted free cash flow.  Consequently, Ford today declared a second-quarter regular dividend of 15 cents per share, payable June 3 to shareholders of record at the close of business on May 8.

Business Segment Highlights

Ford Pro achieved first-quarter revenue of $18.0 billion, up 36%, together with EBIT of $3.0 billion.  The segment’s EBIT margin of nearly 17% exceeded the sustained mid-teens margin target set for the business.  The results reflected higher production of Super Duty trucks – the 2024 North American Truck of the Year and the most dependable large heavy-duty pickup after three years of ownership, according to J.D. Power – and Transit vans.

With guidance from Ford Pro, more customers are progressively choosing to electrify their vehicle fleets, including the United States Postal Service (9,250 E-Transit vans through the end of 2024) and Ecolab, the global sustainability company (more than 1,000 F-150 Lightning pickups and Mustang Mach-E SUVs).

Over the past 12 months through the first quarter, about 13% of Ford Pro’s EBIT came from software and physical services, including parts and accessories – on the way to a goal of at least 20% within a few years.  Software subscriptions with commercial customers grew 43% year-on-year to more than 560,000 by quarter-end.

Quarterly wholesales, revenue and EBIT for Ford Blue were down in the quarter, all affected by the production ramp and vehicles in inventory of the new 2024 F-150 pickup, which are now being delivered to customers and dealers.  Segment revenue was $21.8 billion; EBIT was about $900 million.  The business unit was again profitable in every market where it operates around the globe.

Sales of Ford Blue’s hybrid vehicles were up 36%, on pace for projected full-year 2024 hybrid sales growth of 40%.  The compact Ford Maverick was America’s No. 1-selling hybrid truck in Q1, and hybrid versions of the new F-150 full-size pickup are now on their way to customers.  The business is well along in carrying out a multiyear plan that is further expanding hybrid options around the globe, including hybrid versions of every vehicle in its North America portfolio by the end of the decade.

Ford Model e revenue was down, as wholesales declined and significant industrywide pricing pressure continued to affect electric vehicles currently on the market.  The segment had an EBIT loss of $1.3 billion, with costs that were flat year-over-year.  The company expects EV costs to improve going forward, but be offset by top-line pressure.

In the meantime, availability of reliable DC fast-charging is more than doubling for Ford EV customers in the U.S. and Canada, as they begin to receive adapters that provide access to more than 15,000 Tesla Superchargers.

Collectively, Ford remains far and away the global truck leader, producing more than 500,000 of them worldwide in the first quarter of the year – gas and, in several cases, hybrid versions of Super Duty, F-150, Ranger and Maverick, along with the all-electric F-150 Lightning.

Ford Credit generated first-quarter earnings before taxes of $326 million, with used-vehicle auction values and lease return rates continuing to normalize.

Full-Year 2024 Outlook

Lawler, the CFO, said that Ford’s full-year adjusted EBIT guidance range is unchanged, with the company tracking to the higher end of the $10 billion to $12 billion range.  The company now expects to generate adjusted free cash flow of $6.5 billion to $7.5 billion – up from the initial outlook of $6 billion to $7 billion provided earlier this year.

Additionally, Ford is anticipating capital expenditures for the year of $8 billion to $9 billion – narrower than the $8 billion to $9.5 billion originally estimated and perhaps at the lower end of the range.  The update reflects the company’s commitment to capital discipline and efficiency – including recent actions to match investments in support of electric vehicles to revised expectations for the pace of EV adoption by customers.

The company remains on plan to achieve $2 billion in cost reductions in areas like materials, freight and manufacturing.

The segment-level EBIT outlook remains $8 billion to $9 billion for Ford Pro and $7 billion to
$7.5 billion for Ford Blue; an EBIT loss of $5.0 billion to $5.5 billion for Ford Model e; and earnings before taxes of about $1.5 billion for Ford Credit.

Ford’s virtual annual meeting of shareholders is scheduled for Thursday, May 9, at 8:30 a.m. ET.  The company plans to report second-quarter 2024 financial results following the close of market on Wednesday, July 24.

# # #

Conference Call Details

Ford Motor Company (NYSE: F) and Ford Motor Credit Company released their first-quarter 2024 financial results at 4:05 p.m. ET on Wednesday, April 24.  Following the release, at 5:00 p.m. ET, Jim Farley, Ford president and chief executive officer; John Lawler, Ford chief financial officer; and other members of the Ford senior leadership team will host a conference call to discuss the results in the context of the company’s ambitious Ford+ plan for growth and value creation.  The presentation and supporting materials will be available at shareholder.ford.com.  Representatives of the investment community will be able to ask questions on the call.

Ford First-Quarter Earnings Call:  Wednesday, April 24, at 5:00 p.m. ET

Toll-Free:  844.282.4573

International:  +1.412.317.5617

Registration Link (option, speeds login):  Ford Earnings Call

Webcast:  shareholder.ford.com

Replay

Available after 8:00 p.m. ET on Wednesday, April 24, and through Wednesday, May 1

Webcast:  click here

Toll-Free:  (U.S.) 877.344.7529

                 (Canada) 855.669.9658

International:  +1.412.317.0088

Replay Access Code:  1396996

The following applies to the information throughout this release:

• See tables later in this release for the nature and amount of special items, and reconciliations of the non-GAAP financial measures designated as “adjusted” to the most comparable financial measures calculated in accordance with U.S. generally accepted accounting principles (“GAAP”).
• Wholesale unit and production volumes include Ford and Lincoln brand vehicles produced and sold by Ford or our unconsolidated affiliates and Jiangling Motors Corporation (“JMC”) brand vehicles produced and sold in China by our unconsolidated affiliate. Revenue does not include vehicles produced and sold by our unconsolidated affiliates. Wholesales and revenue exclude transactions between the Ford Blue, Ford Model e and Ford Pro business segments.  See materials supporting the April 24, 2024, conference call at shareholder.ford.com for further discussion of wholesale unit volumes.
  

Cautionary Note on Forward-Looking Statements

Statements included or incorporated by reference herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements are based on expectations, forecasts, and assumptions by our management and involve a number of risks, uncertainties, and other factors that could cause actual results to differ materially from those stated, including, without limitation:

• Ford is highly dependent on its suppliers to deliver components in accordance with Ford’s production schedule and specifications, and a shortage of or inability to acquire key components or raw materials, such as lithium, cobalt, nickel, graphite, and manganese, can disrupt Ford’s production of vehicles;
• To facilitate access to the raw materials and other components necessary for the production of electric vehicles, Ford has entered into and may, in the future, enter into multi-year commitments to raw material and other suppliers that subject Ford to risks associated with lower future demand for such items as well as costs that fluctuate and are difficult to accurately forecast;
• Ford’s long-term competitiveness depends on the successful execution of Ford+;
• Ford’s vehicles could be affected by defects that result in recall campaigns, increased warranty costs, or delays in new model launches, and the time it takes to improve the quality of our vehicles and services could continue to have an adverse effect on our business;
• Ford may not realize the anticipated benefits of existing or pending strategic alliances, joint ventures, acquisitions, divestitures, or business strategies;
• Ford may not realize the anticipated benefits of restructuring actions and such actions may cause Ford to incur significant charges, disrupt our operations, or harm our reputation;
• Operational information systems, security systems, vehicles, and services could be affected by cybersecurity incidents, ransomware attacks, and other disruptions and impact Ford and Ford Credit as well as their suppliers and dealers;
• Ford’s production, as well as Ford’s suppliers’ production, and/or the ability to deliver products to consumers could be disrupted by labor issues, public health issues, natural or man-made disasters, adverse effects of climate change, financial distress, production difficulties, capacity limitations, or other factors;
• Failure to develop and deploy secure digital services that appeal to customers could have a negative impact on Ford’s business;
• Ford’s ability to maintain a competitive cost structure could be affected by labor or other constraints;
• Ford’s ability to attract, develop, grow, and reward talent is critical to its success and competitiveness;
• Ford’s new and existing products and digital, software, and physical services are subject to market acceptance and face significant competition from existing and new entrants in the automotive and digital and software services industries, and its reputation may be harmed if it is unable to achieve the initiatives it has announced;
• Ford’s results are dependent on sales of larger, more profitable vehicles, particularly in the United States;
• With a global footprint and supply chain, Ford’s results and operations could be adversely affected by economic or geopolitical developments, including protectionist trade policies such as tariffs, or other events;
• Industry sales volume can be volatile and could decline if there is a financial crisis, recession, public health emergency, or significant geopolitical event;
• Ford may face increased price competition or a reduction in demand for its products resulting from industry excess capacity, currency fluctuations, competitive actions, or other factors, particularly for electric vehicles;
• Inflationary pressure and fluctuations in commodity and energy prices, foreign currency exchange rates, interest rates, and market value of Ford or Ford Credit’s investments, including marketable securities, can have a significant effect on results;
• Ford and Ford Credit’s access to debt, securitization, or derivative markets around the world at competitive rates or in sufficient amounts could be affected by credit rating downgrades, market volatility, market disruption, regulatory requirements, or other factors;
• The impact of government incentives on Ford’s business could be significant, and Ford’s receipt of government incentives could be subject to reduction, termination, or clawback;
• Ford Credit could experience higher-than-expected credit losses, lower-than-anticipated residual values, or higher-than-expected return volumes for leased vehicles;
• Economic and demographic experience for pension and OPEB plans (e.g., discount rates or investment returns) could be worse than Ford has assumed;
• Pension and other postretirement liabilities could adversely affect Ford’s liquidity and financial condition;
• Ford and Ford Credit could experience unusual or significant litigation, governmental investigations, or adverse publicity arising out of alleged defects in products, services, perceived environmental impacts, or otherwise;
• Ford may need to substantially modify its product plans and facilities to comply with safety, emissions, fuel economy, autonomous driving technology, environmental, and other regulations;
• Ford and Ford Credit could be affected by the continued development of more stringent privacy, data use, data protection, and artificial intelligence laws and regulations as well as consumers’ heightened expectations to safeguard their personal information; and
• Ford Credit could be subject to new or increased credit regulations, consumer protection regulations, or other regulations.

We cannot be certain that any expectation, forecast, or assumption made in preparing forward-looking statements will prove accurate, or that any projection will be realized.  It is to be expected that there may be differences between projected and actual results.  Our forward-looking statements speak only as of the date of their initial issuance, and we do not undertake any obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events, or otherwise.  For additional discussion, see “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023, as updated by our subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.