Item 1. Financial Statements.

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Item 1. Financial Statements.

FORD MOTOR COMPANY AND SUBSIDIARIES

CONSOLIDATED INCOME STATEMENTS

(in millions, except per share amounts)


	For the periods ended March 31,
	2025		2026
	First Quarter
	(unaudited)
Revenues
Company excluding Ford Credit	$	37,422	$	39,819
Ford Credit	3,237		3,434
Total revenues (Note 3)	40,659		43,253

Costs and expenses
Cost of sales	35,188		35,311
Selling, administrative, and other expenses	2,431		2,807
Ford Credit interest, operating, and other expenses	2,721		2,806
Total costs and expenses	40,340		40,924
Operating income/(loss)	319		2,329
Interest expense on Company debt excluding Ford Credit	288		350
Other income/(loss), net (Note 4)	496		773
Equity in net income/(loss) of affiliated companies	94		160
Income/(Loss) before income taxes	621		2,912
Provision for/(Benefit from) income taxes	148		361
Net income/(loss)	473		2,551
Less: Income/(Loss) attributable to noncontrolling interests	2		3
Net income/(loss) attributable to Ford Motor Company	$	471	$	2,548

EARNINGS/(LOSS) PER SHARE ATTRIBUTABLE TO FORD MOTOR COMPANY COMMON AND CLASS B STOCK (Note 6)
Basic income/(loss)	$	0.12	$	0.64
Diluted income/(loss)	0.12		0.63

Weighted-average shares used in computation of earnings/(loss) per share
Basic shares	3,968		3,991
Diluted shares	4,011		4,071

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in millions)


	For the periods ended March 31,
	2025		2026
	First Quarter
	(unaudited)
Net income/(loss)	$	473	$	2,551
Other comprehensive income/(loss), net of tax (Note 15)
Foreign currency translation	521		(257)
Marketable securities	67		(69)
Derivative instruments	(129)		131
Pension and other postretirement benefits	22		25
Total other comprehensive income/(loss), net of tax	481		(170)
Comprehensive income/(loss)	954		2,381
Less: Comprehensive income/(loss) attributable to noncontrolling interests	2		3
Comprehensive income/(loss) attributable to Ford Motor Company	$	952	$	2,378

The accompanying notes are part of the consolidated financial statements.

Item 1. Financial Statements (continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in millions)


	December 31, 2025		March 31, 2026
	(unaudited)
ASSETS
Cash and cash equivalents (Note 7)	$	23,356	$	17,649
Marketable securities (Note 7)	15,131		12,839
Ford Credit finance receivables, net of allowance for credit losses of $261 and $270 (Note 8)	49,130		46,185
Trade and other receivables, less allowances of $108 and $100	15,398		17,227
Inventories (Note 9)	15,285		16,537
Other assets	5,187		5,892
Total current assets	123,487		116,329
Ford Credit finance receivables, net of allowance for credit losses of $650 and $667 (Note 8)	61,449		60,322
Net investment in operating leases	28,540		28,983
Net property	37,288		38,091
Equity in net assets of affiliated companies	2,753		2,737
Deferred income taxes	21,953		22,273
Other assets	13,690		13,699
Total assets	$	289,160	$	282,434

LIABILITIES
Payables	$	25,809	$	26,039
Other liabilities and deferred revenue (Note 10 and Note 17)	31,779		29,849
Debt payable within one year (Note 12)
Company excluding Ford Credit	5,550		3,268
Ford Credit	51,752		47,523

Total current liabilities	114,890		106,679
Other liabilities and deferred revenue (Note 10 and Note 17)	30,902		30,161
Long-term debt (Note 12)
Company excluding Ford Credit	16,369		16,327
Ford Credit	89,665		90,008
Deferred income taxes	1,354		1,775
Total liabilities	253,180		244,950

EQUITY
Common Stock, par value $0.01 per share (4,154 million shares issued of 6 billion authorized)	41		42
Class B Stock, par value $0.01 per share (71 million shares issued of 530 million authorized)	1		1
Capital in excess of par value of stock	23,922		23,884
Retained earnings	22,508		24,445
Accumulated other comprehensive income/(loss) (Note 15)	(7,710)		(7,880)
Treasury stock	(2,810)		(3,039)
Total equity attributable to Ford Motor Company	35,952		37,453
Equity attributable to noncontrolling interests	28		31
Total equity	35,980		37,484
Total liabilities and equity	$	289,160	$	282,434


The following table includes assets to be used to settle liabilities of the consolidated variable interest entities (“VIEs”). These assets and liabilities are included in the consolidated balance sheets above.
	December 31, 2025		March 31, 2026
	(unaudited)
ASSETS
Cash and cash equivalents	$	2,523	$	2,636
Ford Credit finance receivables, net	55,773		55,342
Net investment in operating leases	13,572		14,354
Other assets	21		65
LIABILITIES
Other liabilities and deferred revenue	$	40	$	12
Debt	52,054		49,199

The accompanying notes are part of the consolidated financial statements.

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)


	For the periods ended March 31,
	2025		2026
	First Quarter
	(unaudited)
Cash flows from operating activities
Net income/(loss)	$	473	$	2,551
Depreciation and tooling amortization	1,848		1,883
Other amortization	(464)		(458)
Provision for credit and insurance losses	161		173
Pension and other postretirement employee benefits (“OPEB”) expense/(income) (Note 11)	94		(136)
Equity method investment (earnings)/losses and impairments in excess of dividends received	(14)		(28)
Foreign currency adjustments	38		(104)
Net realized and unrealized (gains)/losses on cash equivalents, marketable securities, and other investments (Note 4)	(32)		(6)
Stock compensation	121		110
Provision for/(Benefit from) deferred income taxes	(54)		64
Decrease/(Increase) in finance receivables (wholesale and other)	2,427		1,181
Decrease/(Increase) in accounts receivable and other assets	(1,294)		(1,542)
Decrease/(Increase) in inventory	(2,677)		(1,361)
Increase/(Decrease) in accounts payable and accrued and other liabilities	3,020		(1,207)
Other	32		196
Net cash provided by/(used in) operating activities	3,679		1,316

Cash flows from investing activities
Capital spending	(1,818)		(2,376)
Acquisitions of finance receivables and operating leases	(11,611)		(12,095)
Collections of finance receivables and operating leases	10,983		11,439
Purchases of marketable securities and other investments	(2,433)		(1,743)
Sales and maturities of marketable securities and other investments	3,617		3,982

Settlements of derivatives	(180)		34

Returns of capital from equity method investments (Note 16)	1,700		—
Other	(48)		(12)
Net cash provided by/(used in) investing activities	210		(771)

Cash flows from financing activities
Cash payments for dividends and dividend equivalents	(1,196)		(607)
Purchases of common stock	—		(311)
Net changes in short-term debt	(564)		(2,082)
Proceeds from issuance of long-term debt	11,979		12,565
Payments of long-term debt	(16,223)		(15,581)
Other	(116)		(156)
Net cash provided by/(used in) financing activities	(6,120)		(6,172)

Effect of exchange rate changes on cash, cash equivalents, and restricted cash	118		(120)

Net increase/(decrease) in cash, cash equivalents, and restricted cash	$	(2,113)	$	(5,747)

Cash, cash equivalents, and restricted cash at beginning of period (Note 7)	$	23,190	$	23,750
Net increase/(decrease) in cash, cash equivalents, and restricted cash	(2,113)		(5,747)
Cash, cash equivalents, and restricted cash at end of period (Note 7)	$	21,077	$	18,003

The accompanying notes are part of the consolidated financial statements.

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EQUITY

(in millions, unaudited)


	Equity Attributable to Ford Motor Company
	Capital Stock		Cap. in Excess of Par Value of Stock		Retained Earnings		Accumulated Other Comprehensive Income/(Loss) (Note 15)		Treasury Stock		Total		Equity Attributable to Non-controlling Interests		Total Equity
Balance at December 31, 2024	$	42	$	23,502	$	33,740	$	(9,639)	$	(2,810)	$	44,835	$	23	$	44,858
Net income/(loss)	—		—		471		—		—		471		2		473
Other comprehensive income/(loss), net	—		—		—		481		—		481		—		481
Common Stock issued (a)	—		60		—		—		—		60		—		60
Treasury stock/other	—		—		—		—		—		—		—		—
Dividends and dividend equivalents declared ($0.30 per share) (b)	—		—		(1,212)		—		—		(1,212)		—		(1,212)
Balance at March 31, 2025	$	42	$	23,562	$	32,999	$	(9,158)	$	(2,810)	$	44,635	$	25	$	44,660













Balance at December 31, 2025	$	42	$	23,922	$	22,508	$	(7,710)	$	(2,810)	$	35,952	$	28	$	35,980
Net income/(loss)	—		—		2,548		—		—		2,548		3		2,551
Other comprehensive income/(loss), net	—		—		—		(170)		—		(170)		—		(170)
Common Stock issued (a)	1		(7)		—		—		—		(6)		—		(6)
Treasury stock/other	—		(31)		—		—		(229)		(260)		—		(260)
Dividends and dividend equivalents declared ($0.15 per share) (b)	—		—		(611)		—		—		(611)		—		(611)
Balance at March 31, 2026	$	43	$	23,884	$	24,445	$	(7,880)	$	(3,039)	$	37,453	$	31	$	37,484

(a)Includes the effect of share-based compensation.

(b)Dividends and dividend equivalents declared for Common and Class B Stock. In the first quarter of 2025, in addition to a regular dividend of $0.15 per share, we declared a supplemental dividend of $0.15 per share.

The accompanying notes are part of the consolidated financial statements.

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

Table of Contents


Footnote		Page
Note 1	Presentation	8
Note 2	New Accounting Standards	8
Note 3	Revenue	9
Note 4	Other Income/(Loss)	10
Note 5	Income Taxes	10
Note 6	Capital Stock and Earnings/(Loss) Per Share	10
Note 7	Cash, Cash Equivalents, and Marketable Securities	11
Note 8	Ford Credit Finance Receivables and Allowance for Credit Losses	13
Note 9	Inventories	16
Note 10	Other Liabilities and Deferred Revenue	17
Note 11	Retirement Benefits	18
Note 12	Debt	19
Note 13	Derivative Financial Instruments and Hedging Activities	20
Note 14	Employee Separation Actions and Exit and Disposal Activities	22
Note 15	Accumulated Other Comprehensive Income/(Loss)	23
Note 16	Variable Interest Entities	24
Note 17	Commitments and Contingencies	25
Note 18	Segment Information	28

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 1. PRESENTATION

For purposes of this report, “Ford,” the “Company,” “we,” “our,” “us,” or similar references mean Ford Motor Company, our consolidated subsidiaries, and our consolidated VIEs of which we are the primary beneficiary, unless the context requires otherwise. We also make reference to Ford Motor Credit Company LLC, herein referred to as Ford Credit. Our consolidated financial statements are presented in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information, instructions to the Quarterly Report on Form 10-Q, and Rule 10-01 of Regulation S-X.

In the opinion of management, these unaudited financial statements include all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of our results of operations and financial condition for the periods, and at the dates, presented. The results for interim periods are not necessarily indicative of results that may be expected for any other interim period or for the full year. Reference should be made to the financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2025 (“2025 Form 10-K Report”).

NOTE 2. NEW ACCOUNTING STANDARDS

Adoption of New Accounting Standards

Accounting Standards Updates (“ASUs”) adopted during 2026 had no material effect on our consolidated financial statements or financial statement disclosures.

Accounting Standards Issued But Not Yet Adopted

ASU 2024-03, Disaggregation of Income Statement Expenses (“DISE”). In November 2024, the Financial Accounting Standards Board (“FASB”) issued a new accounting standard to improve the disclosures about an entity’s expenses and address requests from investors for more detailed information about the types of expenses included in commonly presented expense captions. The new standard is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, with retrospective application permitted. We are assessing the effect on our consolidated financial statement disclosures; however, adoption will not affect our consolidated income statements, balance sheets, or statements of cash flows.

All other ASUs issued but not yet adopted were assessed and determined to be not applicable or are not expected to have a material effect on our consolidated financial statements or financial statement disclosures.

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 3. REVENUE

The following tables disaggregate our revenue by major source for the periods ended March 31 (in millions):


	First Quarter 2025
	Company excluding Ford Credit		Ford Credit		Consolidated
Vehicles, parts, and accessories	$	35,867	$	—	$	35,867
Used vehicles	685		—		685
Services and other revenue (a)	803		18		821
Revenues from sales and services	37,355		18		37,373

Leasing income	67		1,131		1,198
Financing income	—		2,046		2,046
Insurance income	—		42		42
Total revenues	$	37,422	$	3,237	$	40,659

	First Quarter 2026
	Company excluding Ford Credit		Ford Credit		Consolidated
Vehicles, parts, and accessories	$	37,644	$	—	$	37,644
Used vehicles	1,147		—		1,147
Services and other revenue (a)	953		23		976
Revenues from sales and services	39,744		23		39,767

Leasing income	75		1,346		1,421
Financing income	—		2,023		2,023
Insurance income	—		42		42
Total revenues	$	39,819	$	3,434	$	43,253

(a)Includes extended service contract revenue.

The amount of consideration we receive and revenue we recognize on our vehicles, parts, and accessories varies with changes in return rights, marketing incentives we offer to our customers and their customers, and other pricing adjustments. Estimates of marketing incentives and other pricing adjustments are based on our expectation of retail and fleet sales volumes, mix of products to be sold, competitor actions, and incentive programs to be offered. Customer acceptance of products and programs, as well as other market conditions, will affect these estimates. As a result of changes in our estimate of variable consideration (e.g., marketing incentives), we recorded an increase related to revenue recognized in prior periods of $96 million and $259 million in the first quarter of 2025 and 2026, respectively.

We had a balance of $6.2 billion and $6.3 billion of unearned revenue associated primarily with outstanding extended service contracts reported in Other liabilities and deferred revenue at December 31, 2025 and March 31, 2026, respectively*.* We expect to recognize approximately $1.5 billion of the unearned amount in the remainder of 2026, $1.5 billion in 2027, and $3.3 billion thereafter. We recognized $504 million and $585 million of unearned amounts from prior years as revenue during the first quarter of 2025 and 2026, respectively.

Amounts paid to dealers to obtain extended service contracts are deferred and recorded as Other assets. Our deferred cost balances were $307 million and $306 million as of December 31, 2025 and March 31, 2026, respectively. We recognized $30 million and $27 million of amortization during the first quarter of 2025 and 2026, respectively.

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 4. OTHER INCOME/(LOSS)

The amounts included in Other income/(loss), net for the periods ended March 31 were as follows (in millions):


	First Quarter
	2025		2026
Net periodic pension and OPEB income/(cost), excluding service cost (Note 11)	$	11	$	238
Investment-related interest income	351		316
Interest income/(expense) on income taxes	(17)		(4)
Realized and unrealized gains/(losses) on cash equivalents, marketable securities, and other investments	32		6
Gains/(Losses) on changes in investments in affiliates	7		(3)
Royalty income	107		111
Other	5		109
Total	$	496	$	773

NOTE 5. INCOME TAXES

For interim tax reporting, we estimate one single effective tax rate for tax jurisdictions not subject to a valuation allowance, which is applied to the year-to-date ordinary income/(loss). Tax effects of significant unusual or infrequently occurring items are excluded from the estimated annual effective tax rate calculation and recognized in the interim period in which they occur.

Our Provision for/(Benefit from) income taxes for the first quarter of 2026 was a provision of $361 million, resulting in an effective tax rate of 12.4%, partially driven by a benefit resulting from a tax law change in the United Kingdom during the period.

NOTE 6. CAPITAL STOCK AND EARNINGS/(LOSS) PER SHARE

Earnings/(Loss) Per Share Attributable to Ford Motor Company Common and Class B Stock

Basic and diluted earnings/(loss) per share were calculated using the following (in millions):


	First Quarter
	2025		2026
Net income/(loss) attributable to Ford Motor Company	$	471	$	2,548

Basic and Diluted Shares
Basic shares (average shares outstanding)	3,968		3,991
Net dilutive options, unvested restricted stock units, and unvested restricted stock shares	43		80
Diluted shares	4,011		4,071

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 7. CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES

The fair values of cash, cash equivalents, and marketable securities were as follows (in millions):


		December 31, 2025
	Fair Value Level	Company excluding Ford Credit		Ford Credit		Consolidated
Cash and cash equivalents
U.S. government	1	$	1,649	$	70	$	1,719
U.S. government agencies	2	610		400		1,010
Non-U.S. government and agencies	2	1,300		1,082		2,382
Corporate debt	2	1,404		780		2,184
Total marketable securities classified as cash equivalents		4,963		2,332		7,295
Cash, time deposits, and money market funds		9,123		6,938		16,061
Total cash and cash equivalents		$	14,086	$	9,270	$	23,356

Marketable securities
U.S. government	1	$	3,817	$	224	$	4,041
U.S. government agencies	2	1,319		—		1,319
Non-U.S. government and agencies	2	2,043		91		2,134
Corporate debt	2	6,755		269		7,024

Other marketable securities	2	413		200		613
Total marketable securities		$	14,347	$	784	$	15,131

Restricted cash		$	251	$	107	$	358

Cash, cash equivalents, and restricted cash - held for sale		$	36	$	—	$	36

		March 31, 2026
	Fair Value Level	Company excluding Ford Credit		Ford Credit		Consolidated
Cash and cash equivalents
U.S. government	1	$	—	$	97	$	97
U.S. government agencies	2	1,185		—		1,185
Non-U.S. government and agencies	2	—		487		487
Corporate debt	2	201		545		746
Total marketable securities classified as cash equivalents		1,386		1,129		2,515
Cash, time deposits, and money market funds		8,339		6,795		15,134
Total cash and cash equivalents		$	9,725	$	7,924	$	17,649

Marketable securities
U.S. government	1	$	2,803	$	229	$	3,032
U.S. government agencies	2	1,042		—		1,042
Non-U.S. government and agencies	2	2,004		95		2,099
Corporate debt	2	5,802		266		6,068

Other marketable securities	2	403		195		598
Total marketable securities		$	12,054	$	785	$	12,839

Restricted cash		$	241	$	113	$	354

Cash, cash equivalents, and restricted cash - held for sale		$	—	$	—	$	—

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 7. CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES (Continued)

The cash equivalents and marketable securities accounted for as available-for-sale (“AFS”) securities were as follows (in millions):


	December 31, 2025
									Fair Value of Securities with Contractual Maturities
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Within 1 Year		After 1 Year through 5 Years		After 5 Years
Company excluding Ford Credit
U.S. government	$	3,724	$	25	$	(2)	$	3,747	$	356	$	3,391	$	—
U.S. government agencies	1,358		6		(8)		1,356		460		892		4
Non-U.S. government and agencies	1,958		12		(8)		1,962		553		1,400		9
Corporate debt	8,065		65		(1)		8,129		2,925		5,200		4
Other marketable securities	385		3		—		388		2		357		29
Total	$	15,490	$	111	$	(19)	$	15,582	$	4,296	$	11,240	$	46

	March 31, 2026
									Fair Value of Securities with Contractual Maturities
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Within 1 Year		After 1 Year through 5 Years		After 5 Years
Company excluding Ford Credit
U.S. government	$	2,725	$	6	$	(7)	$	2,724	$	414	$	2,310	$	—
U.S. government agencies	1,052		2		(9)		1,045		467		578		—
Non-U.S. government and agencies	1,964		5		(9)		1,960		685		1,275		—
Corporate debt	5,962		30		(15)		5,977		1,517		4,385		75
Other marketable securities	364		1		—		365		40		319		6
Total	$	12,067	$	44	$	(40)	$	12,071	$	3,123	$	8,867	$	81

Sales proceeds and gross realized gains/losses from the sale of AFS securities for the periods ended March 31 were as follows (in millions):


	First Quarter
	2025		2026
Company excluding Ford Credit
Sales proceeds	$	2,449	$	2,608
Gross realized gains	5		10
Gross realized losses	3		1

We determine credit losses on AFS debt securities using the specific identification method. During the first quarter of 2026, we did not recognize any credit losses. Unrealized losses on securities are due to changes in interest rates and market liquidity.

Cash, Cash Equivalents, and Restricted Cash

Cash, cash equivalents, and restricted cash, as reported on our consolidated statements of cash flows, were as follows (in millions):


	December 31, 2025		March 31, 2026
Cash and cash equivalents	$	23,356	$	17,649
Restricted cash (a)	358		354
Cash, cash equivalents, and restricted cash - held for sale	36		—
Total cash, cash equivalents, and restricted cash	$	23,750	$	18,003

(a)Included in Other assets in the non-current assets section of our consolidated balance sheets.

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 8. FORD CREDIT FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES

Ford Credit manages finance receivables as “consumer” and “non-consumer” portfolios. The receivables are generally secured by the vehicles, inventory, or other property being financed.

Finance receivables are recorded at the time of origination or purchase at fair value and are subsequently reported at amortized cost, net of any allowance for credit losses.

For all finance receivables, Ford Credit defines “past due” as any payment, including principal and interest, that is at least 31 days past the contractual due date.

Ford Credit finance receivables, net were as follows (in millions):


	December 31, 2025		March 31, 2026
Consumer
Retail installment contracts, gross	$	80,467	$	78,821
Finance leases, gross	9,274		9,102
Retail financing, gross	89,741		87,923
Unearned interest supplements	(4,486)		(4,266)
Consumer finance receivables	85,255		83,657
Non-Consumer
Dealer financing	26,235		23,787
Non-Consumer finance receivables	26,235		23,787
Total recorded investment	$	111,490	$	107,444

Recorded investment in finance receivables	$	111,490	$	107,444
Allowance for credit losses	(911)		(937)
Total finance receivables, net	$	110,579	$	106,507

Current portion	$	49,130	$	46,185
Non-current portion	61,449		60,322
Total finance receivables, net	$	110,579	$	106,507

Net finance receivables subject to fair value (a)	$	101,822	$	97,936
Fair value (b)	102,499		98,349

(a)Net finance receivables subject to fair value exclude finance leases.

(b)The fair value of finance receivables is categorized within Level 3 of the fair value hierarchy.

Ford Credit’s finance leases are comprised of sales-type and direct financing leases. Financing revenue from finance leases for the first quarter of 2025 and 2026 was $137 million and $155 million, respectively, and is included in Ford Credit revenues on our consolidated income statements.

At December 31, 2025 and March 31, 2026, accrued interest was $314 million and $293 million, respectively, which we report in Other assets in the current assets section of our consolidated balance sheets.

Included in the recorded investment in finance receivables at December 31, 2025 and March 31, 2026 were consumer receivables of $43.8 billion and $43.0 billion, respectively, and non-consumer receivables of $20.3 billion and $19.0 billion, respectively, (including Ford Blue, Ford Model e, and Ford Pro receivables sold to Ford Credit, which we report in Trade and other receivables) that have been sold for legal purposes in securitization transactions but continue to be reported in our consolidated financial statements. The receivables are available only for payment of the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions; they are not available to pay the other obligations or the claims of Ford Credit’s other creditors. Ford Credit holds the right to receive the excess cash flows not needed to pay the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions.

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 8. FORD CREDIT FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued)

Credit Quality

Consumer Portfolio. Credit quality ratings for consumer receivables are based on aging. Receivables over 60 days past due are in intensified collection status.

The credit quality analysis of consumer receivables at December 31, 2025 and gross charge-offs during the year ended December 31, 2025 were as follows (in millions):


	Amortized Cost Basis by Origination Year
	Prior to 2021		2021		2022		2023		2024		2025		Total		Percent
Consumer
31 - 60 days past due	$	61	$	65	$	139	$	228	$	275	$	166	$	934	1.1	%
Greater than 60 days past due	21		24		51		75		89		60		320		0.4
Total past due	82		89		190		303		364		226		1,254		1.5
Current	1,139		2,206		6,290		15,071		26,716		32,579		84,001		98.5
Total	$	1,221	$	2,295	$	6,480	$	15,374	$	27,080	$	32,805	$	85,255	100.0	%

Gross charge-offs	$	54	$	54	$	124	$	187	$	205	$	42	$	666

The credit quality analysis of consumer receivables at March 31, 2026 and gross charge-offs during the period ended March 31, 2026 were as follows (in millions):


	Amortized Cost Basis by Origination Year
	Prior to 2022		2022		2023		2024		2025		2026		Total		Percent
Consumer
31 - 60 days past due	$	96	$	118	$	199	$	259	$	199	$	13	$	884	1.1	%
Greater than 60 days past due	30		39		59		76		58		—		262		0.3
Total past due	126		157		258		335		257		13		1,146		1.4
Current	2,452		5,160		12,909		24,259		30,618		7,113		82,511		98.6
Total	$	2,578	$	5,317	$	13,167	$	24,594	$	30,875	$	7,126	$	83,657	100.0	%

Gross charge-offs	$	21	$	27	$	48	$	65	$	36	$	—	$	197

Non-Consumer Portfolio. The credit quality of dealer financing receivables is evaluated based on Ford Credit’s internal dealer risk rating analysis. Ford Credit uses a proprietary model to assign each dealer a risk rating. This model uses historical dealer performance data to identify key factors about a dealer that are considered most significant in predicting a dealer’s ability to meet its financial obligations. Ford Credit also considers numerous other financial and qualitative factors of the dealer’s operations, including capitalization and leverage, liquidity and cash flow, profitability, and credit history with Ford Credit and other creditors.

Dealers are assigned to one of four groups according to risk ratings as follows:

Group I – strong to superior financial metrics
Group II – fair to favorable financial metrics
Group III – marginal to weak financial metrics
Group IV – poor financial metrics, including dealers classified as uncollectible

Ford Credit generally suspends credit lines and extends no further funding to dealers classified in Group IV.

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 8. FORD CREDIT FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued)

The credit quality analysis of dealer financing receivables at December 31, 2025 and gross charge-offs during the year ended December 31, 2025 were as follows (in millions):


	Amortized Cost Basis by Origination Year														Wholesale Loans
	Dealer Loans
	Prior to 2021		2021		2022		2023		2024		2025		Total				Total			Percent
Group I	$	269	$	68	$	31	$	149	$	78	$	268	$	863	$	20,608		$	21,471		81.8	%
Group II	25		8		4		33		46		44		160		3,979			4,139			15.8
Group III	1		—		—		2		1		11		15		584			599			2.3
Group IV	—		—		—		—		—		2		2		24			26			0.1
Total (a)	$	295	$	76	$	35	$	184	$	125	$	325	$	1,040	$	25,195		$	26,235		100.0	%

Gross charge-offs	$	—	$	—	$	—	$	1	$	—	$	—	$	1	$	10		$	11

(a)Total past due dealer financing receivables at December 31, 2025 were $8 million.

The credit quality analysis of dealer financing receivables at March 31, 2026 and gross charge-offs during the period ended March 31, 2026 were as follows (in millions):


	Amortized Cost Basis by Origination Year														Wholesale Loans
	Dealer Loans
	Prior to 2022		2022		2023		2024		2025		2026		Total				Total			Percent
Group I	$	289	$	30	$	145	$	83	$	173	$	128	$	848	$	18,443		$	19,291		81.1	%
Group II	34		3		34		47		24		34		176		3,673			3,849			16.2
Group III	1		—		1		2		1		7		12		621			633			2.6
Group IV	—		—		—		—		1		—		1		13			14			0.1
Total (a)	$	324	$	33	$	180	$	132	$	199	$	169	$	1,037	$	22,750		$	23,787		100.0	%

Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	5		$	5

(a)Total past due dealer financing receivables at March 31, 2026 were $5 million.

Allowance for Credit Losses

The allowance for credit losses represents an estimate of the lifetime expected credit losses inherent in finance receivables as of the balance sheet date. The adequacy of the allowance for credit losses is assessed quarterly.

Adjustments to the allowance for credit losses are made by recording charges to Ford Credit interest, operating, and other expenses on our consolidated income statements. The uncollectible portion of a finance receivable is charged to the allowance for credit losses at the earlier of when an account is deemed to be uncollectible or when an account is 120 days delinquent, taking into consideration the financial condition of the customer or borrower, the value of the collateral, recourse to guarantors, and other factors*.*

Charge-offs on finance receivables include uncollected amounts related to principal, interest, late fees, and other allowable charges. Recoveries on finance receivables previously charged off as uncollectible are credited to the allowance for credit losses. In the event Ford Credit repossesses the collateral, the receivable is charged off and the collateral is recorded at its estimated fair value less costs to sell and reported in Other assets on our consolidated balance sheets.

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 8. FORD CREDIT FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued)

An analysis of the allowance for credit losses related to finance receivables for the periods ended March 31 was as follows (in millions):


	First Quarter 2025
	Consumer		Non-Consumer		Total
Allowance for credit losses
Beginning balance	$	860	$	4	$	864
Charge-offs	(166)		(1)		(167)
Recoveries	40		—		40
Provision for credit losses	135		5		140
Other (a)	3		1		4
Ending balance	$	872	$	9	$	881


	First Quarter 2026
	Consumer		Non-Consumer		Total
Allowance for credit losses
Beginning balance	$	902	$	9	$	911
Charge-offs	(197)		(5)		(202)
Recoveries	46		1		47
Provision for credit losses	169		3		172
Other (a)	9		—		9
Ending balance	$	929	$	8	$	937

(a) Includes gains/(losses) on unguaranteed residuals on retail balloon and finance lease receivables as well as amounts related to foreign currency translation adjustments.

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 9. INVENTORIES

Inventories were as follows (in millions):


	December 31, 2025		March 31, 2026
Raw materials, work-in-process, and supplies	$	6,020	$	6,403
Finished products	9,265		10,134
Total inventories	$	15,285	$	16,537

NOTE 10. OTHER LIABILITIES AND DEFERRED REVENUE

Other liabilities and deferred revenue were as follows (in millions):


	December 31, 2025		March 31, 2026
Current
Dealer and dealers’ customer allowances and claims	$	15,293	$	14,466
Deferred revenue	4,489		4,434
Employee benefit plans	3,507		2,224
Accrued interest	1,453		1,403
Operating lease liabilities	567		567
OPEB (a)	331		330
Pension (a)	228		227
Other (b)	5,911		6,198
Total current other liabilities and deferred revenue	$	31,779	$	29,849

Non-current
Dealer and dealers’ customer allowances and claims	$	12,136	$	12,246
Deferred revenue	5,360		5,363
OPEB (a)	4,031		3,951
Pension (a)	3,701		3,548
Operating lease liabilities	1,835		1,818
Employee benefit plans	792		817
Other (b)	3,047		2,418
Total non-current other liabilities and deferred revenue	$	30,902	$	30,161

(a)Balances at March 31, 2026 reflect pension and OPEB liabilities at December 31, 2025, updated for: service and interest cost; expected return on assets; curtailments, settlements, and associated interim remeasurement (where applicable); separation expense; actual benefit payments; and cash contributions. For plans without interim remeasurement, the discount rate and rate of expected return assumptions are unchanged from year-end 2025. Included in Other assets are pension assets of $3.7 billion and $4.1 billion at December 31, 2025 and March 31, 2026, respectively.

(b)Includes current derivative liabilities of $0.5 billion at both December 31, 2025 and March 31, 2026. Includes non-current derivative liabilities of $0.5 billion and $0.4 billion at December 31, 2025 and March 31, 2026, respectively. (See Note 13.)

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 11. RETIREMENT BENEFITS

Defined Benefit Plans - Expense

The pre-tax net periodic benefit cost/(income) for our defined benefit pension and OPEB plans for the periods ended March 31 were as follows (in millions):


	First Quarter
	2025						2026
	Pension Benefits				OPEB		Pension Benefits				OPEB
	U.S. Plans		Non-U.S. Plans		Worldwide		U.S. Plans		Non-U.S. Plans		Worldwide
Service cost	$	52	$	48	$	5	$	53	$	44	$	5
Interest cost	393		224		55		353		248		50
Expected return on assets	(456)		(278)		—		(449)		(295)		—
Amortization of prior service costs/(credits)	22		6		2		22		6		2
Net remeasurement (gain)/loss	—		(10)		—		—		(243)		—
Separation costs/other	7		24		—		—		53		—
Settlements and curtailments	—		—		—		—		15		—
Net periodic benefit cost/(income)	$	18	$	14	$	62	$	(21)	$	(172)	$	57

The service cost component is included in Cost of sales and Selling, administrative, and other expenses. Other components of net periodic benefit cost/(income) are included in Other income/(loss), net on our consolidated income statements.

Pension Plan Contributions

During 2026, we continue to expect to contribute about $550 million of cash to our global funded pension plans. We also expect to make about $400 million of benefit payments to participants in unfunded plans. In the first quarter of 2026, we contributed $178 million to our global funded pension plans and made $97 million of benefit payments to participants in unfunded plans.

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 12. DEBT

The carrying value of Company debt excluding Ford Credit and Ford Credit debt was as follows (in millions):


	December 31, 2025		March 31, 2026
Company excluding Ford Credit
Debt payable within one year
Short-term	$	1,355	$	1,385
Long-term debt payable within one year
Public unsecured debt securities	1,672		1,672
Convertible notes (a)	2,300		—
Other debt (including finance leases) (b)	226		212
Unamortized (discount)/premium and issuance costs	(3)		(1)
Total debt payable within one year	5,550		3,268
Long-term debt payable after one year
Public unsecured debt securities	13,087		13,087
U.K. Export Finance Program	2,355		2,317
Other debt (including finance leases) (b)	1,210		1,196
Unamortized (discount)/premium and issuance costs	(283)		(273)
Total long-term debt payable after one year	16,369		16,327
Total Company excluding Ford Credit	$	21,919	$	19,595
Fair value of Company debt excluding Ford Credit (c)	$	21,640	$	18,736
Ford Credit
Debt payable within one year
Short-term	$	18,350	$	16,077
Long-term payable within one year
Unsecured debt	13,625		12,345
Asset-backed debt	19,831		19,137
Unamortized (discount)/premium and issuance costs	(18)		(17)
Fair value adjustments (d)	(36)		(19)
Total debt payable within one year	51,752		47,523
Long-term debt payable after one year
Unsecured debt	52,357		55,384
Asset-backed debt	37,741		35,283
Unamortized (discount)/premium and issuance costs	(229)		(238)
Fair value adjustments (d)	(204)		(421)
Total long-term debt payable after one year	89,665		90,008
Total Ford Credit	$	141,417	$	137,531
Fair value of Ford Credit debt (c)	$	144,213	$	139,329

(a)On March 16, 2026, we settled the principal amount of our $2.3 billion 0.00% Convertible Senior Notes in cash and issued 6.6 million shares of Ford Common Stock held as treasury stock to settle the conversion premium, which were subsequently repurchased as part of our anti-dilutive share repurchase program.

(b)At December 31, 2025 and March 31, 2026, long-term finance leases payable within one year were $136 million and $129 million, respectively, and long-term finance leases payable after one year were $754 million and $752 million, respectively.

(c)At December 31, 2025 and March 31, 2026, the fair value of debt includes $1.4 billion and $1.4 billion of Company excluding Ford Credit short-term debt, respectively, and $16.4 billion and $15.2 billion of Ford Credit short-term debt, respectively, carried at cost, which approximates fair value. All other debt is categorized within Level 2 of the fair value hierarchy.

(d)These adjustments are related to hedging activity and include discontinued hedging relationship adjustments of $(319) million and $(251) million at December 31, 2025 and March 31, 2026, respectively. The carrying value of hedged debt was $41.7 billion and $44.7 billion at December 31, 2025 and March 31, 2026, respectively.

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 13. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

In the normal course of business, our operations are exposed to global market risks, including the effect of changes in foreign currency exchange rates, certain commodity prices, and interest rates. To manage these risks, we enter into derivative and nonderivative contracts and have elected to apply hedge accounting to certain of these instruments. Derivatives that are designated in hedging relationships are evaluated for effectiveness using regression analysis at the time they are designated and throughout the hedge period. Some derivatives do not qualify for hedge accounting; for others, we elect not to apply hedge accounting.

Income Effect of Derivative Financial Instruments

The gains/(losses), by hedge designation, reported in income for the periods ended March 31 were as follows (in millions):


	First Quarter
Cash flow hedges	2025		2026
Reclassified from AOCI to Cost of sales
Foreign currency exchange contracts (a)	$	74	$	(12)
Commodity contracts (b)	11		28
Fair value hedges
Interest rate contracts
Net interest settlements and accruals on hedging instruments	(48)		(7)
Fair value changes on hedging instruments	329		(178)
Fair value changes on hedged debt	(324)		170
Cross-currency interest rate swap contracts
Net interest settlements and accruals on hedging instruments	(25)		(12)
Fair value changes on hedging instruments	146		(203)
Fair value changes on hedged debt	(136)		204
Derivatives not designated as hedging instruments
Foreign currency exchange contracts (c)	60		(34)
Cross-currency interest rate swap contracts	102		(90)
Interest rate contracts	(45)		91
Commodity contracts	11		41
Total	$	155	$	(2)

(a)For the first quarter of 2025 and 2026, a $78 million loss and a $136 million gain, respectively, were reported in Other comprehensive income/(loss), net of tax.

(b)For the first quarter of 2025 and 2026, a $4 million loss and a $78 million gain, respectively, were reported in Other comprehensive income/(loss), net of tax.

(c)For the first quarter of 2025 and 2026, a $70 million gain and a $63 million loss, respectively, were reported in Cost of sales, and a $10 million loss and a $29 million gain, respectively, were reported in Other income/(loss), net.

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 13. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Continued)

Balance Sheet Effect of Derivative Financial Instruments

Derivative assets and liabilities are reported on our consolidated balance sheets at fair value and are presented on a gross basis. The notional amounts of the derivative instruments do not necessarily represent amounts exchanged by the parties and are not a direct measure of our financial exposure. We also enter into master agreements with counterparties that may allow for netting of exposures in the event of default or breach of the counterparty agreement. Collateral represents cash received or paid under reciprocal arrangements that we have entered into with our derivative counterparties, which we do not use to offset our derivative assets and liabilities.

The fair value of our derivative instruments and the associated notional amounts were as follows (in millions):


	December 31, 2025						March 31, 2026
	Notional		Fair Value of Assets		Fair Value of Liabilities		Notional		Fair Value of Assets		Fair Value of Liabilities
Cash flow hedges
Foreign currency exchange contracts	$	17,750	$	98	$	114	$	16,384	$	174	$	64
Commodity contracts	940		122		—		995		167		7
Fair value hedges
Interest rate contracts	18,582		374		220		21,437		225		244
Cross-currency interest rate swap contracts	4,158		383		5		5,050		247		69
Derivatives not designated as hedging instruments
Foreign currency exchange contracts	24,934		150		180		24,848		130		256
Cross-currency interest rate swap contracts	7,121		379		28		5,912		238		33
Interest rate contracts	87,293		364		619		88,018		439		470
Commodity contracts	803		56		1		909		91		4
Total derivative financial instruments, gross (a) (b)	$	161,581	$	1,926	$	1,167	$	163,553	$	1,711	$	1,147

Current portion			$	634	$	643			$	682	$	748
Non-current portion			1,292		524				1,029		399
Total derivative financial instruments, gross			$	1,926	$	1,167			$	1,711	$	1,147

(a)At December 31, 2025 and March 31, 2026, we held collateral of $5 million and $4 million, respectively, and we posted collateral of $102 million and $111 million, respectively.

(b)At December 31, 2025 and March 31, 2026, the fair value of assets and liabilities available for counterparty netting was $814 million and $843 million, respectively. All derivatives are categorized within Level 2 of the fair value hierarchy.

Nonderivative Hedging Instruments

In the first quarter of 2026, we designated a foreign-denominated debt issuance as a net investment hedge to manage the foreign currency risk of a portion of our investment in a foreign subsidiary with non-U.S. dollar functional currency. The designated balance of $839 million at March 31, 2026 is reported in Ford Credit debt on our consolidated balance sheets. The cumulative foreign currency remeasurement gains and losses on the designated debt are recorded in Accumulated other comprehensive income/(loss), offsetting translation adjustments on the investment. Upon the sale or substantial liquidation of our investment in the foreign subsidiary, the gains and losses are reclassified to Other income/(loss), net. For the first quarter of 2026, a $28 million gain was recognized in Foreign currency translation, a component of Other comprehensive income/(loss), net of tax, and no amount was reclassified to income.

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 14. EMPLOYEE SEPARATION ACTIONS AND EXIT AND DISPOSAL ACTIVITIES

We generally record costs associated with voluntary separations at the time of employee acceptance. We generally record costs associated with involuntary separation programs when management has approved the plan for separation, the affected employees are identified, and it is unlikely that actions required to complete the separation plan will change significantly. Costs associated with benefits that are contingent on the employee continuing to provide service are accrued over the required service period.

Company excluding Ford Credit

Employee separation actions and exit and disposal activities include employee separation costs, facility and other asset-related charges (e.g., impairment, accelerated depreciation), dealer and supplier payments, other statutory and contractual obligations, and other expenses, which are recorded in Cost of sales and Selling, administrative, and other expenses.

The following table summarizes the activities (primarily hourly and salaried worker separation programs in Europe, which are expected to be substantially complete by the end of 2027) for the periods ended March 31, which are recorded in Other liabilities and deferred revenue (in millions):


	First Quarter
	2025		2026
Beginning balance	$	1,098	$	1,457
Changes in accruals (a)	47		368
Payments	(178)		(770)
Foreign currency translation and other	32		(26)
Ending balance	$	999	$	1,029

(a)Excludes pension costs of $24 million and $68 million in the first quarter of 2025 and 2026, respectively.

We estimate that we will incur total charges in 2026 that range between $500 million and $1 billion related to initiated actions, primarily attributable to employee separations; some charges are related to plans that are subject to negotiations with a works council, union, or other social partner. In addition, we continue to review our global businesses and may take additional restructuring actions where a path to sustained profitability is not feasible.

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 15. ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS)

The changes in the balances for each component of accumulated other comprehensive income/(loss) attributable to Ford Motor Company for the periods ended March 31 were as follows (in millions):


	First Quarter
	2025		2026
Foreign currency translation
Beginning balance	$	(6,899)	$	(4,878)
Gains/(Losses) on foreign currency translation	497		(293)
Less: Tax/(Tax benefit) (a)	(28)		(31)
Net gains/(losses) on foreign currency translation	525		(262)
(Gains)/Losses reclassified from AOCI to net income (b)	(4)		5
Other comprehensive income/(loss), net of tax	521		(257)
Ending balance	$	(6,378)	$	(5,135)

Marketable securities
Beginning balance	$	(50)	$	81
Gains/(Losses) on available for sale securities	88		(82)
Less: Tax/(Tax benefit)	19		(19)
Net gains/(losses) on available for sale securities	69		(63)
(Gains)/Losses reclassified from AOCI to net income	(2)		(9)
Less: Tax/(Tax benefit)	—		(3)
Net (gains)/losses reclassified from AOCI to net income (b)	(2)		(6)
Other comprehensive income/(loss), net of tax	67		(69)
Ending balance	$	17	$	12

Derivative instruments
Beginning balance	$	277	$	(38)
Gains/(Losses) on derivative instruments	(82)		193
Less: Tax/(Tax benefit)	(19)		50
Net gains/(losses) on derivative instruments	(63)		143
(Gains)/Losses reclassified from AOCI to net income	(85)		(16)
Less: Tax/(Tax benefit)	(19)		(4)
Net (gains)/losses reclassified from AOCI to net income (c)	(66)		(12)
Other comprehensive income/(loss), net of tax	(129)		131
Ending balance	$	148	$	93

Pension and other postretirement benefits
Beginning balance	$	(2,967)	$	(2,875)
Amortization and recognition of prior service costs/(credits)	30		30
Less: Tax/(Tax benefit)	7		7
Net prior service costs/(credits) reclassified from AOCI to net income	23		23
Translation impact on non-U.S. plans	(1)		2
Other comprehensive income/(loss), net of tax	22		25
Ending balance	$	(2,945)	$	(2,850)

Total AOCI ending balance at March 31	$	(9,158)	$	(7,880)

(a)We do not recognize deferred taxes for a majority of the foreign currency translation gains and losses because we do not anticipate reversal in the foreseeable future. However, we have made elections to tax certain non-U.S. operations simultaneously in U.S. tax returns, and have recorded deferred taxes for temporary differences that will reverse, independent of repatriation plans, in U.S. tax returns. Taxes or tax benefits resulting from foreign currency translation of the temporary differences are recorded in Other comprehensive income/(loss), net of tax.

(b)Reclassified to Other Income/(Loss), net.

(c)Reclassified to Cost of sales. During the next twelve months, we expect to reclassify existing net gains on cash flow hedges of $202 million (see Note 13).

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 16. VARIABLE INTEREST ENTITIES

Certain of our affiliates are VIEs in which we are not the primary beneficiary. Our maximum exposure to any potential losses associated with these unconsolidated affiliates is limited to our equity investments, accounts receivable, loans, and guarantees and was $5.2 billion and $5.3 billion at December 31, 2025 and March 31, 2026, respectively. The guarantee exposure is related to certain debt at our unconsolidated affiliates, which includes amounts outstanding as well as potential future draws up to a maximum amount of $4.9 billion at both December 31, 2025 and March 31, 2026, related to certain obligations of our VIEs (see Note 17).

In July 2022, Ford, SK On Co., Ltd. (“SK On”), and SK Battery America, Inc. (“SKBA,” a wholly owned subsidiary of SK On) completed the creation of BlueOval SK, LLC (“BOSK”), a 50/50 joint venture formed to build and operate an EV battery plant in Tennessee and two EV battery plants in Kentucky to supply batteries to Ford and Ford affiliates. BOSK is a VIE of which we are not the primary beneficiary, and we use the equity method of accounting for our investment. In December 2024, BOSK entered into a loan agreement with the United States Department of Energy (“DOE”) of up to $9.6 billion (the “BOSK DOE Loan”). In conjunction with the loan agreement, Ford agreed to guarantee its 50% share of BOSK’s payment obligations under the BOSK DOE Loan. After its draws on the BOSK DOE Loan, BOSK distributed $3.1 billion (including $1.7 billion in the first quarter of 2025) to Ford as returns of capital. As of March 31, 2026, Ford recognized contributions (net of returns of capital) to BOSK of $3.5 billion of its agreed capital contribution of up to $6.6 billion through 2026. The total amount of capital contributions is subject to adjustments agreed to by the parties.

Since the formation of BOSK, our and the automotive industry’s expectations for EV adoption rates have shifted significantly and led to a decline in our expected volume requirements for batteries. Accordingly, in December 2025, Ford, SK On, SKBA, and BOSK entered into a Joint Venture Disposition Agreement (“JVDA”), which is expected to close in the second quarter of 2026.

Pursuant to the JVDA, our membership interest in BOSK will be redeemed, and a Ford subsidiary will receive the two Kentucky plants and related assets, and will assume the related liabilities, including the portion of the BOSK DOE Loan related to the Kentucky plants, which Ford guaranteed as noted above. We used the market and cost approaches to estimate the fair value of BOSK’s long-lived assets and determined the value of the liabilities to be assumed is expected to exceed the value of the assets received. Accordingly, we do not expect to recover the carrying amount of our investment in BOSK. The carrying value of our investment in BOSK was $0 at both December 31, 2025 and March 31, 2026.

Upon closing of the transactions contemplated by the JVDA, we expect to recognize additional charges primarily because the value of the liabilities to be assumed is expected to exceed the value of the assets received. Moreover, upon closing, Ford will no longer have an obligation to make capital contributions to BOSK and will be released from the BOSK DOE Loan guarantee related to the Tennessee plant.

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 17. COMMITMENTS AND CONTINGENCIES

Commitments and contingencies primarily consist of guarantees and indemnifications, litigation and claims, and warranty and field service actions.

Guarantees and Indemnifications

Financial Guarantees. Financial guarantees and indemnifications are recorded at fair value at their inception. Subsequent to initial recognition, the guarantee liability is adjusted at each reporting period to reflect the current estimate of expected payments resulting from possible default events over the remaining life of the guarantee. The maximum potential payments for financial guarantees were $5.4 billion and $5.3 billion at December 31, 2025 and March 31, 2026, respectively. See Note 16 for additional information. The carrying value of recorded liabilities related to financial guarantees was $92 million at both December 31, 2025 and March 31, 2026.

Our financial guarantees consist of debt and lease obligations of certain joint ventures, as well as certain financial obligations of outside third parties, including suppliers, to support our business and economic growth. Expiration dates vary through 2040, and guarantees will terminate on payment and/or cancellation of the underlying obligation. A payment by us would be triggered by failure of the joint venture or other third party to fulfill its obligation covered by the guarantee. In some circumstances, we are entitled to recover from a third party amounts paid by us under the guarantee.

Non-Financial Guarantees. Non-financial guarantees and indemnifications are recorded at fair value at their inception. We regularly review our performance risk under these arrangements, and in the event it becomes probable we will be required to perform under a guarantee or indemnity, the probable amount of payment is recorded. The maximum potential payments and carrying values of recorded liabilities related to non-financial guarantees were de minimis at both December 31, 2025 and March 31, 2026.

In the ordinary course of business, we execute contracts involving indemnifications standard in the industry and indemnifications specific to a transaction, such as the sale of a business. These indemnifications might include and are not limited to claims relating to any of the following: environmental, tax, and shareholder matters; intellectual property rights; power generation contracts; governmental regulations and employment-related matters; dealer, supplier, and other commercial contractual relationships; and financial matters, such as securitizations. Performance under these indemnities generally would be triggered by a breach of contract claim brought by a counterparty, including a joint venture or alliance partner, or a third-party claim. While some of these indemnifications are limited in nature, many of them do not limit potential payment. Therefore, we are unable to estimate a maximum amount of future payments that could result from claims made under these unlimited indemnities.

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 17. COMMITMENTS AND CONTINGENCIES (Continued)

Litigation and Claims

Various legal actions, proceedings, and claims (generally, “matters”) are pending or may be instituted or asserted against us. These include, but are not limited to, matters arising out of alleged defects in our products; product warranties; governmental regulations relating to safety, emissions, and fuel economy or other matters; government incentives; tax matters, including trade and customs; alleged illegal acts resulting in fines or penalties; financial services; employment-related matters; dealer, supplier, and other contractual relationships; intellectual property rights; environmental matters; shareholder or investor matters; and financial reporting matters. Certain of the pending legal actions are, or purport to be, class actions. Some of the matters involve or may involve claims for compensatory, punitive, or antitrust or other treble damages that are significant, or demands for field service actions, environmental remediation programs, sanctions, loss of government incentives, assessments, or other relief, which, if granted, would require significant expenditures.

The extent of our financial exposure to these matters is difficult to estimate. Many matters do not specify a dollar amount for damages, and many others specify only a jurisdictional minimum. To the extent an amount is asserted, our historical experience suggests that in most instances the amount asserted is not a reliable indicator of the ultimate outcome.

We accrue for matters when losses are deemed probable and reasonably estimable. In evaluating matters for accrual and disclosure purposes, we take into consideration factors such as our historical experience with matters of a similar nature, the specific facts and circumstances asserted, the likelihood that we will prevail, and the severity of any potential loss. We reevaluate and update our accruals as matters progress over time.

For the majority of matters, which generally arise out of alleged defects in our products, we establish an accrual based on our extensive historical experience with similar matters. We do not believe there is a reasonably possible outcome materially in excess of our accrual for these matters. For the remaining matters, where our historical experience with similar matters is of more limited value (i.e., “non-pattern matters”), we evaluate the matters primarily based on the individual facts and circumstances. For non-pattern matters, we evaluate whether there is a reasonable possibility of a material loss in excess of any accrual that can be estimated.

Our estimate of reasonably possible loss in excess of our accruals for all material matters currently reflects indirect tax and regulatory matters, for which we estimate the aggregate risk to be a range of up to about $0.4 billion.

As noted, the litigation process is subject to many uncertainties, and the outcome of individual matters is not predictable with assurance. Our assessments are based on our knowledge and experience, but the ultimate outcome of any matter could require payment substantially in excess of the amount that we have accrued and/or disclosed.

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 17. COMMITMENTS AND CONTINGENCIES (Continued)

Warranty and Field Service Actions

We accrue the estimated cost of both base warranty coverages and field service actions at the time of sale. We establish our estimate of base warranty obligations using a patterned estimation model, using historical information regarding the nature, frequency, and average cost of claims for each vehicle line by model year. We establish our estimates of field service action obligations using a patterned estimation model, using historical information regarding the nature, frequency, severity, and average cost of claims for each model year. In addition, from time to time, we issue extended warranties at our expense, the estimated cost of which is accrued at the time of issuance. Warranty and field service action obligations are reported in Other liabilities and deferred revenue. We reevaluate the adequacy of our accruals on a regular basis.

We recognize the benefit from a recovery of the costs associated with our warranty and field service actions when specifics of the recovery have been agreed with our supplier and the amount of recovery is virtually certain. Recoveries are reported in Trade and other receivables, net and Other assets.

The estimate of our future warranty and field service action costs, net of estimated supplier recoveries, for the periods ended March 31 was as follows (in millions):


	First Quarter
	2025		2026
Beginning balance	$	14,032	$	17,190
Payments made during the period	(1,457)		(1,487)
Changes in accrual related to warranties issued during the period	1,689		1,374
Changes in accrual related to pre-existing warranties	356		(189)
Foreign currency translation and other	29		140
Ending balance	$	14,649	$	17,028

Changes to our estimated costs are reported as changes in accrual related to pre-existing warranties in the table above. In addition, our estimate of reasonably possible costs in excess of our accruals for material field service actions and customer satisfaction actions is a range of up to about $2.0 billion in the aggregate.

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 18. SEGMENT INFORMATION

We report segment information consistent with the way our chief operating decision maker (“CODM”), our President and Chief Executive Officer, evaluates the operating results and performance of the Company. Accordingly, we analyze the results of our business through the following segments: Ford Blue, Ford Model e, Ford Pro, and Ford Credit.

Below is a description of our reportable segments and other activities.

Ford Blue Segment

Ford Blue primarily includes the sale of Ford and Lincoln internal combustion engine (“ICE”) and hybrid (excluding extended range electric vehicles (“EREVs”)) vehicles, service parts, accessories, and digital services for retail customers, together with the associated costs of development, manufacture, and distribution of the vehicles, parts, accessories, and services. This segment focuses on developing Ford and Lincoln ICE and hybrid vehicles. Additionally, this segment provides hardware engineering and manufacturing capabilities to Ford Model e and manufactures vehicles on behalf of Ford Pro and, in certain cases, Ford Model e. Ford Blue also includes:

All sales for markets not presently in scope for Ford Model e or Ford Pro (as further described below)
In markets outside of the United States and Canada, sales to commercial, government, and rental customers of ICE and hybrid vehicles not considered core to Ford Pro
Sales of EVs, including EREVs, by our unconsolidated affiliates in China
All sales of vehicles manufactured and sold to other OEMs

Ford Model e Segment

Ford Model e primarily includes the sale of our EVs (including EREVs), service parts, accessories, and digital services for retail customers, together with the associated costs of development, manufacture, and distribution of the vehicles, parts, accessories, and services. This segment focuses on developing EV and digital vehicle technologies, as well as software development. Additionally, this segment provides software and connected vehicle technologies on behalf of the enterprise and manufactures certain EVs, including for Ford Pro. Ford Model e operates in North America, Europe, and China. Ford Model e also includes EV and related sales not considered core to Ford Pro to commercial, government, and rental customers in Europe, China, and Mexico.

Ford Pro Segment

Ford Pro primarily includes the sale of Ford and Lincoln vehicles, service parts, accessories, and services for commercial, government, and rental customers. Included in this segment are sales of all core Ford Pro vehicles, such as Super Duty and the Transit range of vans in North America and Europe and all sales of Ranger in Europe. In the United States and Canada, Ford Pro also includes all vehicle sales to commercial, government, and rental customers. This segment focuses on selling ICE, hybrid, and electric vehicles and providing digital and physical services to optimize and maintain fleets, including telematics and EV charging solutions. This segment reflects external sales of vehicles produced by Ford Blue and Ford Model e, and the costs (including intersegment markup) associated with acquiring vehicles for sale and providing services are reflected in this segment. Ford Pro operates in North America and Europe.

Ford Credit Segment

The Ford Credit segment is comprised of the Ford Credit business on a consolidated basis, which is primarily vehicle-related financing and leasing activities.

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 18. SEGMENT INFORMATION (Continued)

Corporate Other

Corporate Other primarily includes corporate governance expenses, past service pension and OPEB income and expense, interest income (excluding Ford Credit interest income and interest earned on our extended service contract portfolio) and realized and unrealized gains and losses on our cash, cash equivalents, and marketable securities, and foreign exchange derivatives gains and losses associated with intercompany lending. Corporate governance expenses are primarily administrative, delivering benefit on behalf of the global enterprise, that are not allocated to operating segments. These include expenses related to setting and directing global policy, providing oversight and stewardship, and promoting the Company’s interests. Corporate Other assets include: cash, cash equivalents, and marketable securities; tax-related assets; defined benefit pension plan net assets; and other assets managed centrally.

Interest on Debt

Interest on Debt is presented as a separate reconciling item and consists of interest expense on Company debt excluding Ford Credit.

Special Items

Special items are presented as a separate reconciling item. They consist of (i) pension and OPEB remeasurement gains and losses, (ii) significant personnel expenses, supplier- and dealer-related costs, and facility-related charges stemming from our efforts to match production capacity and cost structure to market demand and changing model mix, and (iii) other items that we do not generally consider to be indicative of earnings from ongoing operating activities. Our management excludes these items from its review of the results of the operating segments for purposes of measuring segment profitability and allocating resources. We also report these special items separately to help investors track amounts related to these activities and to allow investors analyzing our results to identify certain infrequent significant items that they may wish to exclude when analyzing operating results.

CODM Evaluation of the Business

When we report segment earnings before interest and taxes (“Segment EBIT”) for each of the Ford Blue, Ford Model e, and Ford Pro segments, it consists of the earnings for the particular segment and does not include interest and taxes. Ford Credit segment earnings include interest and exclude taxes (“Segment EBT”). Each segment’s EBIT/EBT also excludes the results reported in Corporate Other and Special Items. For the Ford Blue, Ford Model e, and Ford Pro segments, our CODM reviews Segment EBIT and Segment EBIT margin, as well as market share, revenue, and wholesale volume to evaluate performance and allocate resources, predominately in the budgeting, planning, and forecasting processes. For Segment EBIT, our CODM reviews the year-over-year change in EBIT, sequential change in EBIT, and change in EBIT from internal forecasts/budgets. Revenue and certain of our costs, such as material costs, generally vary directly with changes in volume and mix of vehicles. As a result, our CODM reviews the effect of changes in volume and mix, exchange, and net pricing and cost categories (at constant volume and mix and/or exchange) on EBIT. For the Ford Credit segment, our CODM reviews Segment EBT to evaluate performance and allocate resources. Expense information is provided to and reviewed by the CODM on a consolidated basis to evaluate cost efficiency and company level performance.

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 18. SEGMENT INFORMATION (Continued)

Segment Revenue, Cost, and Asset Principles for Ford Blue, Ford Model e, and Ford Pro

External vehicle and digital services revenue is generally vehicle-specific and included in the segment responsible for the external vehicle sale. A majority of parts and accessories revenue and cost is attributed to customer sales channels or vehicle lines based on recent end-customer sales and is included in the respective segment.

In the normal course of business, Ford Blue, Ford Model e, and Ford Pro transact between segments and cooperate to leverage synergies, including developing and manufacturing vehicles on behalf of another segment. When one segment produces a vehicle that is sold externally by another segment, an intersegment transaction occurs. The producing segment will report intersegment revenue to recoup the costs associated with the unit produced. This includes material cost, labor and overhead (including depreciation and amortization), inbound freight, and an intersegment markup. The intersegment markup amount is set to deliver a competitive return to the producing segment for its manufacturing and distribution service. Costs are reflected in the associated segment externally reporting the vehicle sale, as detailed in the table below:


Income Statement Elements	Examples	Segment Reporting
Costs specific to a particular vehicle	Bill of material cost and initial warranty accrual	Reported in the segment externally selling the vehicle
Costs identifiable by product line	Manufacturing and logistics costs, depreciation & amortization expense, direct research & development costs	Typically identifiable to the product line or production location. Reported in the segment externally selling the vehicle, based on relative volume
Shared costs	Selling, general & administrative expense, and indirect/cross product line research & development costs	Typically shared across all segments, generally based on relative volume. Certain costs clearly linked to a segment are reported in the specific segment
Intersegment markup costs for intersegment vehicle transactions	Contract manufacturing and distribution fees	Reported in the segment externally selling the vehicle, for each applicable vehicle transaction

Assets are reported in each segment, aligned to the appropriate operational responsibility. Manufacturing assets, e.g., our plants and the machinery and equipment therein, are included in our Ford Blue and Ford Model e segments. Manufacturing assets producing only, or primarily, EVs and related components are reflected in Ford Model e. Manufacturing assets that support the production of ICE and hybrid vehicles, including those producing ICE and electric vehicles in the same facility, are included in Ford Blue. Company-owned vendor tooling dedicated to producing EV parts is reported in Ford Model e. Purchased regulatory credit compliance assets are reported in Ford Blue. There are no Ford manufacturing, Company-owned vendor tooling, or regulatory credit compliance assets reported in Ford Pro. Depreciation and amortization expense is reflected on the basis of production volume. Regulatory compliance credit expense is allocated by vehicle line between the Ford Blue and Ford Pro segments. Regardless of the segment reporting the asset, the related expenses are reported in the segment that reports the external vehicle sale.

Equity in net income/(loss) of affiliated companies is included in Income/(Loss) before income taxes, based primarily on which segment the entity supports or has the majority of the entity’s purchases or sales. The table below shows the segment reporting for our most significant unconsolidated entities:


Ford Blue	Ford Model e	Ford Pro
∘ Changan Ford Automobile Corporation, Ltd. (“CAF”)	∘ BlueOval SK, LLC (“BOSK”)	∘ Ford Otomotiv Sanayi Anonim Sirketi (“Ford Otosan”)
∘ Jiangling Motors Corporation, Ltd. (“JMC”)
∘ AutoAlliance (Thailand) Co., Ltd. (“AAT”)

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 18. SEGMENT INFORMATION (Continued)

Key financial information for the periods ended or at March 31 was as follows (in millions):


	Ford Blue		Ford Model e		Ford Pro		Ford Credit		Unallocated Amounts and Eliminations (a)		Total
First Quarter 2025
External revenues	$	20,997	$	1,242	$	15,181	$	3,237	$	2	$	40,659
Intersegment revenues (b)	10,605		116		—		—		(10,721)		—
Total revenues	$	31,602	$	1,358	$	15,181	$	3,237	$	(10,719)	$	40,659
Other segment items (c)	31,506		2,207		13,872		2,657
Segment EBIT/EBT	$	96	$	(849)	$	1,309	$	580			$	1,136
Reconciliation of Segment EBIT/EBT
Unallocated amounts:
Corporate Other											(117)
Interest on debt (excludes $1,790 of Ford Credit interest on debt)											(288)
Special items (d)											(110)
Income/(Loss) before income taxes											$	621

Other Segment Disclosures
Depreciation and tooling amortization	$	729	$	138	$	348	$	618	$	15	$	1,848
Investment-related interest income	48		1		15		91		196		351
Equity in net income/(loss) of affiliated companies	62		(20)		40		10		2		94
Cash outflow for capital spending	987		761		7		28		35		1,818
Total assets	62,772		16,181		3,664		154,183		47,739		284,539

First Quarter 2026
External revenues	$	23,858	$	1,232	$	14,723	$	3,434	$	6	$	43,253
Intersegment revenues (b)	9,524		76		—		—		(9,600)		—
Total revenues	$	33,382	$	1,308	$	14,723	$	3,434	$	(9,594)	$	43,253
Other segment items (c)	31,440		2,085		13,038		2,651
Segment EBIT/EBT	$	1,942	$	(777)	$	1,685	$	783			$	3,633
Reconciliation of Segment EBIT/EBT
Unallocated amounts:
Corporate Other											(145)
Interest on debt (excludes $1,719 of Ford Credit interest on debt)											(350)
Special items (e)											(226)
Income/(Loss) before income taxes											$	2,912

Other Segment Disclosures
Depreciation and tooling amortization	$	738	$	45	$	348	$	715	$	37	$	1,883
Investment-related interest income	52		1		16		77		170		316
Equity in net income/(loss) of affiliated companies	54		(4)		100		13		(3)		160
Cash outflow for capital spending	1,335		990		8		19		24		2,376
Total assets	66,111		6,976		3,924		157,627		47,796		282,434

(a)Unallocated amounts include Corporate Other (see above description of corporate expenses and corporate assets) and Special Items. Eliminations include intersegment transactions occurring in the ordinary course of business.

(b)Intersegment revenues only reflect finished vehicle transactions between Ford Blue, Ford Model e, and Ford Pro where there is an intersegment markup and are recognized at the time of the intersegment transaction.

(c)Other segment items for the Ford Blue, Ford Model e, and Ford Pro segments primarily includes material costs, manufacturing costs, warranty coverages and field service action costs, freight and distribution costs, vehicle and software engineering costs, spending-related costs, advertising and sales promotions costs, and administrative, information technology, and selling costs. Other segment items for the Ford Credit segment primarily includes interest expense and depreciation.

(d)Primarily reflects the cancellation of a previously planned all-electric three-row SUV program and continued ongoing restructuring actions in Europe.

(e)Primarily reflects ongoing restructuring actions in Europe and continued charges related to the EV program cancellations previously announced in December 2025, offset partially by pension and OPEB remeasurements.

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