Ford Motor Co. (NYSE: F) saw its stock climb 1.8% to $13.30 on Wednesday, driven by renewed investor interest in its energy storage business. The move came after Ford Energy, the company's battery storage division, announced a significant five-year agreement with EDF Power Solutions North America. Under the deal, EDF can purchase up to 4 gigawatt-hours annually of Ford Energy's DC Block battery energy storage systems, with total capacity reaching 20 GWh. First deliveries are scheduled for 2028.
The partnership underscores Ford's strategy to diversify beyond its traditional automotive business. By leveraging its Ford Energy unit, the company aims to tap into the growing demand for large-scale battery storage, particularly from data centers and AI-driven power needs. These systems help utilities and large customers store electricity and feed it back to the grid during peak demand, enhancing grid reliability.
Ford Energy President Lisa Drake emphasized that the agreement goes beyond hardware. “We are trying to offer long-term operational confidence,” she said, highlighting Ford's commitment to providing reliable energy solutions. EDF Power Solutions North America CEO Tristan Grimbert echoed this sentiment, focusing on “supply chain reliability and product quality” as key factors in the deal.
The broader market also provided tailwinds, with major U.S. indexes trading higher as chip stocks rebounded ahead of Nvidia's earnings. Lower oil prices and softer Treasury yields attracted buyers, according to Reuters. General Motors advanced 4.4%, and Tesla rose 2.3%, suggesting that Ford's gains were part of a broader sector uptrend.
On the financial front, Ford reported a solid first quarter with revenue of $43.3 billion and net income of $2.5 billion. Adjusted EBIT, the company's preferred operating profit measure, came in at $3.5 billion. Management raised its full-year adjusted EBIT guidance to a range of $8.5 billion to $10.5 billion. CFO Sherry House stated, “Path to higher margins is clear.”
However, challenges remain. The F-150 pickup remains Ford's primary profit engine, but production has been slowed by fires at aluminum supplier Novelis. JPMorgan analyst Ryan Brinkman noted that Ford might be having a “more difficult time recovering from the Novelis fire” than many anticipated. Additionally, losses persist at the Model e electric vehicle unit.
In Europe, Ford is planning to launch seven new models by 2029, including small electric cars and SUVs in both hybrid and electric versions. The automaker aims to regain market share and compete with Chinese rivals like BYD. “We need to stand out in a crowd,” Ford's European president Jim Baumbick told Reuters.
In a management change, Ford announced that global chief marketing officer Lisa Materazzo will step down on June 1. Dean Stoneley will serve as interim CMO while the company searches for a permanent replacement. CEO Jim Farley praised Stoneley as someone with “a proven track record of global marketing leadership.”
Ford Energy is still viewed as a growth option in the power sector rather than a solution to the automaker's broader cyclical issues. Key milestones ahead include securing more customer signings, meeting the 2028 delivery target, and maintaining sufficient cash flow from Ford Pro and Ford Blue to offset EV losses and fund the new energy initiative.
