Ford (F) reported first-quarter results after the bell that beat expectations on Wednesday, with its changing product game plan front and center alongside its focus on gas and hybrid offerings. Ford also boosted some guidance metrics but not its full-year earnings outlook.
During the quarter, Ford reported revenue of $42.8 billion, beating estimates of $40.04 billion and up 3% compared to last year. Ford reported adjusted earnings per share of $0.49, beating expectations of $0.42, with adjusted earnings before interest and taxes (EBIT) coming in at $2.8 billion, compared to estimates of $2.54 billion. Ford's results were better than those it achieved in the fourth quarter when it was dealing with the lingering effects of the United Auto Workers (UAW) strike.
Ford said full-year adjusted EBITDA is trending at the high end of $10 billion to $12 billion, though it raised its adjusted free cash flow target to $6.5 billion to $7.5 billion, while tightening capital expenditures guidance to $8 billion to $9 billion. Previously, Ford expected adjusted EBITDA of $10 billion to $12 billion, adjusted free cash flow of $6 billion to $7 billion, and capital expenditures of $8 billion to $9.5 billion.
Ford also announced a dividend of $0.15 for the quarter.
After the results were released, Ford shares rose 3% in after-hours trading. These results come after General Motors announced strong first-quarter results and boosted its annual profit expectations.
“Customers want cars they love, choices in how they operate, quality that keeps improving and great value,” Jim Farley, Ford's president and CEO, said in a statement. “With Ford+, we're increasingly giving them all of these things in ways others don't and creating a company that will lead for the long term.”
Last year, Ford split its business into three units as part of its Ford+ initiative: Ford Blue for conventional gas-powered vehicles; Ford Model E, for the electric vehicle division; and Ford Pro for commercial and heavy-duty truck work. Here are the details for the first quarter:
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Ford Blue: Revenues of $21.8 billion, EBIT of $905 million
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Model E: Revenue of $100 million, loss before interest and taxes of $1.32 billion
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Ford Pro: $18 billion revenue, EBIT $3.01 billion
During the first quarter, Ford delved deeper into its gas and hybrid vehicles, with electric vehicle spending and production declining. Earlier this month, Ford said it would push back electric vehicle production at its massive BlueOval City EV campus in Tennessee to 2026 from an initial start date of 2025. Ford also revealed it was “re-timing” upcoming electric vehicle launches at its Oakville plant , Ontario, where it plans to build the next generation of three-row electric vehicles, most likely a full-size SUV. The company aims to launch these vehicles in 2027, pushing back the original schedule of 2025.
Ford also said earlier this quarter that it would do so Add a third shift To boost production of the mid-size Bronco SUV and Ranger to meet customer demand. Meanwhile, Ford is focusing on its hybrid offerings, such as the Maverick pickup truck and the all-new F-150 with a hybrid powertrain.
This was reflected at Ford Q1 US deliveries Which jumped by 6.8% to 508,083 cars, supported by strong sales of electric products such as hybrid cars. The Ford Maverick hybrid had its best quarter ever, with sales jumping 77% in the first quarter. The Maverick also boosted overall hybrid sales to a 42% jump to 38,421, with Ford claiming this was also the best quarter for hybrids and that momentum will continue.
Even Ford's electric vehicle offerings — the Mustang Mach-E, the Ford Lightning EV, and its E-Transit commercial vans — have bucked the recent trend of declining demand. Ford's overall EV portfolio saw a massive 82% jump to 20,223 EVs sold in the first quarter, with the Mustang Mach-E jumping 77.3% to 9,589 units sold, and the Lightning truck seeing sales jump 80.4% to 7,743 units. While sales numbers here are strong, Ford has relied on deep discounts, cheap financing rates, and lease deals to move inventory.
However, Ford's note was its F-150 sales leader. Although the F-Series (which includes the heavy-duty F-150, F-250 and F-350 offerings) retained the crown of best-selling truck in America, sales fell 10.2% in the quarter to 152,943 units. Ford has seen Slow escalation The all-new F-150, which went on sale in March.
Correction: A previous version of this article misstated Ford's adjusted earnings per share number. We apologize for this error.
Pras Subramanian is a reporter for Yahoo Finance. You can follow it Twitter and on Instagram.
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