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Ford (Ba1/BBB-): 1Q24 Results

CONSUMER CYCLICALS

Positive results with strong EBITDA beat and better FCF guidance. Not expecting much movement given spread outperformance YTD. Debt position should continue to improve with 40-50% of FCF to be paid out to shareholders, although management expect to invest in growth opportunities. Positive ratings momentum should continue.


• Revenue came in line, while adj. EBITDA came in 25% ahead of consensus.

• FCF came in low at -$0.5bn on inventory buildup; consensus was $1.4bn.

• Net cash is left at $4.9bn from $8.9bn at Q4, expectation was flat.

• Management expects the inventory build to reverse in Q2.

• FY24 FCF guidance has been upgraded by 7% on lower capex, with EBIT guidance maintained.

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