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SEC filingFord's Q1 2026 net income surged to $2.5B, driven by a $2.5B YoY EBIT increase from Ford Blue and Ford Pro.
Ford's first quarter 2026 results showed a dramatic improvement in profitability. Net income attributable to Ford surged to $2,548 million from $471 million in the prior year, a $2,077 million increase. This was driven by a $2,469 million increase in Company adjusted EBIT to $3,488 million, which more than offset higher taxes and special item charges. Revenue grew 6% to $43.3 billion. The net income margin expanded 4.7 percentage points to 5.9%, while the adjusted EBIT margin improved 5.6 percentage points to 8.1%. Diluted EPS rose to $0.63 from $0.12, and adjusted diluted EPS was $0.66.
The primary driver of the EBIT improvement was a massive swing in Ford Blue, which went from $96 million EBIT in Q1 2025 to $1,942 million in Q1 2026. This was fueled by favorable market factors (volume/mix and net pricing), higher parts and accessories profit, and lower regulatory compliance expenses. A one-time $700 million benefit from the IEEPA tariff ruling was a significant contributor, offsetting higher sourcing costs from tariffs and aluminum supply disruptions. Ford Pro also contributed strongly, with EBIT rising to $1,685 million from $1,309 million, aided by a $500 million IEEPA benefit and lower costs. Ford Credit EBT increased to $783 million from $580 million, driven by higher financing margin and favorable derivative valuations. Ford Model e's EBIT loss narrowed to $777 million from $849 million, as lower losses on Gen-1 products (including lower warranty costs) partially offset higher investment in future Gen-2 products.
Ford Blue's wholesale units were roughly flat year-over-year, but revenue increased 14% to $23.9 billion, driven by favorable mix and net pricing. The segment's EBIT margin soared from 0.5% to 8.1%. Ford Pro's wholesales declined 10% due to aluminum supply disruptions and the end of Escape production, but revenue only fell 3% to $14.7 billion, helped by favorable exchange and mix. Its EBIT margin improved to 11.4% from 8.6%. Ford Model e's wholesales increased 10%, but revenue was flat at $1.2 billion, reflecting pricing pressure. Its EBIT margin improved to -63.1% from -68.4%. Ford Credit's total net receivables grew 2% to $144.1 billion, and its return on equity improved to 18.2% from 12.3%.
For full-year 2026, Ford expects adjusted EBIT of $8.5 billion to $10.5 billion and adjusted free cash flow of $5.0 billion to $6.0 billion. Segment guidance includes Ford Pro EBIT of $6.5-$7.5 billion, Ford Blue EBIT of $4.5-$5.0 billion, Ford Model e EBIT loss of $4.0-$4.5 billion, and Ford Credit EBT of about $2.5 billion. Key assumptions include a $1.3 billion adjusted EBIT benefit from IEEPA (no cash flow benefit until 2027), a U.S. SAAR of 16.0-16.5 million, flat U.S. industry pricing, a net $1.0 billion improvement from the Novelis recovery (including $1.5-$2.0 billion of temporary costs), commodity headwinds of just above $2.0 billion, and tariff impacts of about $1.0 billion (excluding IEEPA and Novelis-related tariffs). Management also expects a $1.0 billion improvement in material costs and warranty reductions, and an incremental $1.0 billion investment in Model e for the Universal EV platform and Ford Energy.