Ford’s strong performance was primarily driven by the growth of its Ford Pro unit, which experienced a 36% year-over-year revenue increase. This growth was attributed to high demand for Super Duty work trucks, Transit vans, and software. The Ford Pro segment’s EBIT more than doubled during the quarter. The company’s Ford Blue unit saw a revenue decline of 13% year-over-year, while the Ford Model e division, which includes electric vehicles, faced industrywide pricing pressure and reported an EBIT loss of $1.3 billion in the first quarter.
Despite the challenges faced by Ford Model e, the company remains optimistic about the long-term prospects of its electric vehicle business. Ford expects the Model e unit’s costs to improve going forward, and for the segment to focus on managing top-line sales pressure. The company’s CEO, Jim Farley, highlighted the customer-centric approach of Ford+, stating that the company aims to provide customers with vehicles that evoke passion, offer diverse powertrain options, continuously enhance quality, and deliver excellent value.
Ford’s guidance for the full year remains unchanged, with adjusted earnings before interest and taxes expected to fall within a range of $10 billion to $12 billion. The company expects EBIT to track towards the higher end of this range. Ford also raised its guidance for adjusted free cash flow, now anticipating a range of $6.5 billion to $7.5 billion for the full fiscal year, up from the previously announced range of $6 billion to $7 billion. The company’s capital expenditures are expected to be in the range of $8 billion to $9 billion for the full year, slightly improved from the prior range of $8 billion to $9.5 billion.
In after-hours trading, Ford shares rose 2.93% to $13.33, reflecting investors’ positive reaction to the company’s strong financial performance and optimistic outlook.
