Ford Motor Company

Good day, everyone. My name is Layla, and I will be your conference operator today. At this time, I would like to welcome you to the Ford Motor Company first quarter 2026 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, please use the raise hand function, which can be found on the black bar at the bottom of your screen. At this time, I would like to turn the call over to Lynn Antipas Tyson, Chief Investor Relations Officer.

Thank you, Leila, and welcome to Ford Motor Company's first quarter 2026 earnings call. With me today are Jim Farley, President and CEO, and Sherry House, CFO. Joining us for Q&A is Andrew Crick, President of Ford Blue and Model E, Alicia Bowler-Davis, President of Ford Pro, Kumar Galhotra, Chief Operating Officer, and Kathy O'Callaghan, CEO of Ford Credit. Jim will give a high-level overview of the business, and Sherry will provide added texture on the financials and guidance. We'll be referring to non-GAAP measures today. These are reconciled to the most comparable U.S. GAAP measures in the appendix of our earnings deck. You can find the deck at shareholder.ford.com. Our discussion also includes forward-looking statements. Our actual results may differ. The most significant risk factors are included on page 19 of our deck. Unless otherwise noted, all comparisons are year-over-year. Company EBIT, EPS, and pre-cash flow are on an adjusted basis. Upcoming IR engagements include Naveen Kumar, CFO of Ford Pro at the Deutsche Bank Global Auto Industry Conference in New York on May 19th. Now I'll turn the call over to Mr. Farley.

Thank you, Lynn. And thanks to all of you for joining us. I wanted to thank the Ford team, all of our dealers and our partners for a strong start to this year. Our results this quarter, $43.3 billion in revenue, $3.5 billion in adjusted EBIT, reflect a sharp execution and the momentum we're building for our Ford Plus plan. Accordingly, we're raising our full-year adjusted EBIT guidance to between $8.5 and $10.5 billion. These results are encouraging. But the bigger story is the modern Ford that's now taking shape. For five years, we have relentlessly built the foundation of Ford Plus. We strengthened our industrial system, made real progress on quality, cost, and advanced our software capability and customer experience. Earlier this month, we took the next step in that evolution by establishing an end-to-end organization, product creation, and industrialization. We unified our advanced technology, digital, and design teams with our global industrial system. This change aligns with the most intensive product and software rollout in our history. By 2030, almost all of our global volume will feature next generation electric architectures and in-house software. This applies to every propulsion type as we deliver and scale high-quality software-defined vehicles. This new organization allows for faster decision-making and reduced complexity. This is the moment we integrate the digital soul of the vehicle, the software or the silicon, and the user experience with our world-class industrial execution. Among other things, this alignment will support our high margin software and physical services revenue, which was over 15 billion last year. And we expect to grow that 15 billion nearly 8% annually through the end of the decade. This service growth is driven by offering customers indispensable digital experiences and investing in aftermarket sales with a focus on customer uptime, expanding our parts catalog, and enhancing our service network. We're also leaning into the Skunk Works model to improve all of Ford. They've done an incredible job creating the UEV platform, which represents a step change in efficiency and cost, especially for the EV market. But at Ford, we're now integrating these skunk work breakthroughs back into our mainstream products and processes. We're applying their advanced tools and physics-based cost modeling to the highest volume internal combustion and hybrid lines. This of course will reduce our costs and improve quality across the board. Our product pipeline is aggressive. Between now and 29, we will refresh 80% of our North American portfolio and 70% of our global portfolio by volume. This includes the next generation F-150 and Super Duty among many others. It also includes the launch of our universal EV platform in 2027 from our Louisville assembly plant in Kentucky We are scaling that plan for significant volume to accommodate a variety of vehicles off that single platform. And speaking of electrification, our strategy remains focused on powertrain choice, not nameplate complexity. By the end of the decade, 90% of our global nameplates will offer electrified powertrains, including advanced hybrids, extended range electric vehicles, and full EVs. Our financial health is driven by a leaner, more effective industrial system. We're on track to deliver another over a billion dollars in material and warranty cost improvements this year. And we will never stop. Our focus on quality is paying off. J.D. Powers recently ranked Ford number four in the 2026 U.S. Customer Service Index, our best performance in 30 years. Finally, we remain resilient in the face of global uncertainty. Regarding the conflict in the Middle East, of course, our priority is our team and the safety of them. We're monitoring the situation and working to minimize risk and find opportunities in much the same way we have navigated the pandemic, the semiconductor shortage, tariff headwinds, and others. We have the muscle memory to find cost offsets, adjust our product mix quickly, and proactively manage our supply chain in times of stress and crisis. My main message today is this. Ford is a fundamentally stronger, more modern company. We have a foundation built on industrial fitness. We have the technology. And we now have the unified organization to not just deliver, but to compete to win. Ford is focused on execution, quality, and thrilling our customers. Over to you, Sherry.