Ford Reports $42.8B in 2024 Q1Revenue, EBIT of $2.8B

The figures are evidence Ford’s segmented, customer-centered strategy is delivering growth and profitability, sharpening capital efficiency, and fortifying business durability, says Jim Farley CEO of Ford.

“Customers want vehicles that they’re passionate about, choices in how they’re powered, quality that’s constantly getting better and great value,” says 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.”

The company has increased revenue in each of the past three years and expects to do so again in the 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, says John Lawler, CFO for Ford. 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, says Farley. The latter at a targeted rate of 40 percent to 50 percent of adjusted free cash flow.  Consequently, Ford 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.

“The Ford Pro team is growing volumes, revenue and profitability — including EBIT margin — and services capabilities,” says Farley “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.”

Ford Pro achieved first-quarter revenue of $18.0 billion, up 36 percent, together with EBIT of $3.0 billion.  The segment’s EBIT margin of nearly 17 percent exceeded the sustained mid-teens margin target set for the business.

The results reflected higher production of Super Duty, the most dependable large heavy-duty pickup after three years of ownership, according to J.D. Power, and Transit vans.

Over the past 12 months through the first quarter, about 13 percent 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 percent within a few years.  Software subscriptions with commercial customers grew 43 percent 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 percent, on pace for projected full-year 2024 hybrid sales growth of 40 percent.  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.

Collectively, Ford remains 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’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, says Lawler. 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 in the range 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 expects to achieve $2 billion in cost reductions in areas like materials, freight, and manufacturing.

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