Ford Motor Company reported an adjusted EBIT of $3.5 billion in Q1 2026, a significant increase from $1 billion in Q1 2025. However, the company experienced a free cash flow burn of nearly $2 billion, compared to $1.5 billion a year earlier. The free cash flow outflow was attributed mainly to seasonal factors and working capital dynamics, compounded by disruptions related to Novelis.
Ford has raised its full-year EBIT guidance for 2026 to $8.5-$10.5 billion from the previous $8-$10 billion. Despite expectations for improved cash flow trends, the company maintained its free cash flow guidance at $5-$6 billion due to uncertainties regarding a potential $1.3 billion IEEPA tariff benefit and market volatility. Ford’s shares have underperformed, declining 7.4% over the last six months against an industry decline of 1.5%.
In comparison, General Motors Company anticipates capital spending of $10-$12 billion in 2026, while Tesla, Inc. plans over $25 billion in capex through 2026 and projects negative free cash flow for the remainder of the year.
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