Ford signage at the New York International Auto Show in New York City on April 2, 2026.
Danielle DeVries | CNBC
DETROIT – Ford Motor raised its 2026 guidance on Wednesday after beating Wall Street’s first-quarter expectations and reporting a $1.3 billion tariff refund benefit after the U.S. Supreme Court ruled that some of President Donald Trump’s tariffs were illegal.
Ford stock rose more than 6% in after-hours trading.
Here’s how the company performed in the first quarter compared with average estimates compiled by LSEG:
- Earnings per share: 66 cents adjusted vs. 19 cents expected
- Automotive revenue: $39.82 billion vs. $38.82 billion expected
The first-quarter results significantly outperformed Ford’s performance from a year earlier, despite a 4% decline in wholesale units during the time period. Its overall revenue increased 6% to $43.3 billion and its adjusted earnings before interest and taxes more than tripled from $1 billion to $3.5 billion. Net income jumped to $2.5 billion, or 63 cents a share, up from $500 million, or 12 cents a share, a year earlier.
Automakers commonly exclude “special items” or one-time charges from their adjusted financial results to provide investors with a clearer picture of their core, ongoing business operations. Excluding special items but including the tariff reimbursement, Ford earned 66 cents a share.
The company’s updated full-year 2026 guidance includes adjusted EBIT of $8.5 billion to $10.5 billion, up from $8 billion to $10 billion. It maintained adjusted free cash flow of between $5 billion and $6 billion and capital expenditures of $9.5 billion to $10.5 billion.
Ford noted the guidance does not include potential impacts of a sustained conflict in the Middle East or a significant downturn in the U.S. economy.
Ford CFO Sherry House said the earnings increase was not strictly because of the tariff reimbursement. The company has not received that refund yet but said it is helping to offset an expected $1 billion incremental increase in commodity costs, specifically aluminum, for the year.
“The rest of the beat came from strong product mix in net pricing and growth in software and physical services,” House said during a media call Wednesday.”Even with the one-time tier of benefit, the underlying business came in around $2.2 billion ahead of expectations.”
Ford already expected an additional $1 billion in increased commodity costs amid higher prices and as it sources aluminum from different suppliers following fires that have affected production at a key Novelis aluminum plant last year in New York. The automaker has said the supplier isn’t expected to be operational again until between May and September.
House said the company decided to book the tariff refund during the first quarter because that’s when the Supreme Court’s decision was made. Trump last week told CNBC that he would gratefully “remember” U.S. companies that do not seek refunds for the tariffs.
House said the company did not raise its automotive free cash flow guidance along with the earnings outlook due to uncertainty about the tariff refund process and timing.
The International Emergency Economic Powers Act tariff benefit was largely expected by Wall Street analysts, but the exact amount Ford would receive was unknown. It is part of $160 billion in potential refunds expected to be returned to companies after the levies were ruled illegal in February by the Supreme Court in a 6-3 decision.
From a business unit basis, Ford’s traditional “Blue” operations led the way for the company with $1.9 billion in earnings during the quarter, followed by its “Pro” commercial business earnings at about $1.7 billion.
Ford’s “Model e” electric vehicle business narrowed its losses from $849 million a year ago to $777 million during the first quarter of this year. That smaller loss corresponded with a 70% decline in year-over-year EV sales for the first quarter.
Ford’s results come a day after crosstown rival General Motors raised its 2026 guidance and significantly beat Wall Street’s first-quarter earnings expectations. GM reported a roughly $500 million benefit from the U.S. Supreme Court IEEPA decision.
