Ford signage at the New York International Auto Show in New York on April 2, 2026.
Danielle DeVries | CNBC
DETROIT – Ford engine The company raised its 2026 forecast on Wednesday after beating Wall Street expectations for the first quarter and announcing a $1.3 billion tariff refund after the U.S. Supreme Court ruled that some of President Donald Trump’s tariffs were illegal.
Ford shares rose more than 6% after hours.
Here’s the company’s first-quarter performance compared to average estimates compiled by LSEG:
- Earnings per share: 66 cents adjusted. This may not compare to LSEG’s estimate of 19 cents.
- Automotive turnover: $39.82 billion versus $38.82 billion expected
First-quarter results significantly outperformed Ford’s year-over-year performance, despite a 4% decline in wholesale units during the period. Its overall revenue rose 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 per share, from $500 million, or 12 cents per share, a year earlier.
Automakers typically exclude “special items” or one-time charges from their adjusted financial results to provide investors with a clearer picture of their ongoing core business activities. Excluding special items but including the customs duty refund, Ford earned 66 cents per 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 between $5 billion and $6 billion and capital expenditures between $9.5 billion and $10.5 billion.
Ford noted that the forecast does not include the potential impacts of a prolonged conflict in the Middle East or a significant slowdown in the U.S. economy.
Sherry House, Ford’s chief financial officer, said the profit increase was not just due to fare reimbursement. The company has not yet received that reimbursement, but said it helps offset an expected additional $1 billion increase in raw material costs, particularly aluminum, for the year.
“The remainder of the performance was driven by a strong product mix in terms of net pricing and growth in software and physical services,” House said on a media call Wednesday. “Even with the level of one-time benefits, the underlying business exceeded expectations by approximately $2.2 billion.”
Ford already expected an additional $1 billion increase in raw material costs amid higher prices and its sourcing of aluminum from different suppliers following fires that affected production at a key Novelis aluminum plant last year in New York. The automaker said the supplier is not expected to be operational again until May and September.
House said the company decided to record the fare refund in the first quarter because that’s when the Supreme Court ruling was released. Last week, Trump told CNBC that he would “remember” with gratitude U.S. companies that don’t seek refunds on tariffs.
House said the company did not raise its automotive free cash flow guidance as well as its earnings outlook due to uncertainty over the customs duty refund process and timing.
Wall Street analysts widely expected the tariff benefit from the International Emergency Economic Powers Act, but the exact amount Ford would receive was unknown. It’s part of $160 billion in potential refunds expected to be returned to businesses after the levies were declared illegal in February by the Supreme Court in a 6-3 decision.
In terms of business unit, Ford’s traditional “blue” operations led the way for the company with a profit of $1.9 billion during the quarter, followed by its “Pro” business profits of approximately $1.7 billion.
Ford’s “Model e” electric vehicle business narrowed its losses from $849 million a year ago to $777 million in the first quarter of this year. This smaller loss corresponded to a 70% year-over-year decline in electric vehicle sales in the first quarter.
Ford’s results come a day after those of its crosstown rival General engines raised its guidance for 2026 and comfortably beat Wall Street’s expectations for first-quarter earnings. GM reported a profit of approximately $500 million stemming from the U.S. Supreme Court’s IEEPA decision.