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Mar 31, 2023

Ford Q1 2023 Earnings Report

Ford's first-quarter results were positively impacted by its strategic focus on distinct customer groups, leading to increased revenue, net income, and EBIT.

Key Takeaways

Ford reported a strong first quarter in 2023, with revenue up 20% year-over-year to $41.5 billion and net income of $1.8 billion, a significant improvement from the previous year's net loss. The company's focus on distinct customer groups through Ford Blue, Ford Model e, and Ford Pro contributed to the positive results, with Ford Pro and Ford Blue both achieving EBIT margins exceeding 10%. Ford reaffirms its full-year guidance for adjusted EBIT and adjusted free cash flow.

Revenue increased by 20% year-over-year, reaching $41.5 billion.

Net income was $1.8 billion, a significant turnaround from the $3.1 billion net loss in the same period last year.

Adjusted EBIT rose by 45% to $3.4 billion.

Ford Pro and Ford Blue segments both achieved EBIT margins exceeding 10%.

Total Revenue
$39.1B
Previous year: $32.1B
+21.7%
EPS
$0.63
Previous year: $0.38
+65.8%
Adjusted EBIT Margin
8.1%
Cash from Operations
$2.8B
Gross Profit
$4.62B
Previous year: $5.44B
-15.1%
Cash and Equivalents
$22.1B
Previous year: $21B
+5.4%
Free Cash Flow
$693M
Total Assets
$257B
Previous year: $253B
+1.5%

Ford

Ford

Ford Revenue by Segment

Forward Guidance

Ford is maintaining its full-year 2023 performance expectations, with adjusted EBIT between $9 billion and $11 billion and adjusted free cash flow of about $6 billion.

Positive Outlook

  • Supply chain improvements
  • Higher industry volumes
  • Launch of the all-new Super Duty truck
  • Lower costs of goods sold
  • Lower costs for materials and commodities

Challenges Ahead

  • Economic uncertainty around the globe
  • Higher industrywide customer incentives
  • Lower profit from Ford Credit
  • Lower past service pension income
  • Exchange rates and growth-related investments

Revenue & Expenses

Visualization of income flow from segment revenue to net income