Ford Motor Company (F) reported first-quarter deliveries of 457,315 vehicles for 2026, marking a 9% decline from the previous year. This downturn mirrors a broader trend in the auto industry, exacerbated by economic uncertainties and rising vehicle prices. In comparison, General Motors (GM) and Honda (HMC) experienced U.S. delivery declines of approximately 10% and 4%, respectively. Notably, Ford’s electric vehicle sales plummeted nearly 70% to just 6,860 units due to the removal of federal tax incentives and high EV costs, while F-Series truck sales dropped 16% to 159,901 units.
Ford faces significant financial pressures, anticipating $1.5 to $2 billion in additional costs due to supply disruptions from a Novelis aluminum plant fire, which already caused $2 billion in losses last year. Moreover, the company expects around $1 billion in ongoing tariff-related costs. Despite these challenges, Ford maintains a strong liquidity position with approximately $50 billion, including $29 billion in cash, and is pivoting towards growth in its Ford Pro commercial business and energy sectors, with plans to invest $1.5 billion in battery storage by 2026.
As of now, Ford shares have dropped 12% year to date. The Zacks Consensus Estimate projects a 1% increase in 2026 sales and a 40% rise in earnings per share (EPS). The market remains cautious, with Ford carrying a Zacks Rank #3 (Hold) as it navigates this challenging landscape.
