Ford Motor Company shares climbed roughly 1% in premarket activity on Friday, hovering around the $14 level. The move comes as the automaker's stock begins trading ex-dividend, meaning new buyers will not be eligible for the upcoming quarterly cash distribution.
Dividend and Bonus Details
Ford declared a first-quarter dividend of 15 cents per share, payable on March 2 to shareholders of record as of February 13. Separately, Reuters reported that CEO Jim Farley informed employees that the companywide annual bonus will be 130%, crediting improved initial vehicle quality metrics. Approximately 75,000 salaried workers globally are eligible for the performance-linked payouts.
Broader Context and Challenges
The bonus announcement arrives as Ford continues to navigate a complex operating environment, including prior electric vehicle losses, tariff pressures, and supply chain disruptions. The company has emphasized enhancing quality and optimizing cash flow to stabilize its financial narrative.
In its latest guidance, Ford reaffirmed its target for adjusted earnings before interest and taxes (EBIT) of $8 billion to $10 billion for 2026. However, it anticipates a net loss for 2025 due to special charges. Adjusted free cash flow is projected between $5 billion and $6 billion for 2026.
Market and Analyst Perspective
The wider automotive sector showed mixed signals ahead of the opening bell. Analysts note that while Ford's 2026 outlook has been viewed as meeting expectations, execution on underlying assumptions remains key. Persistent risks include potential delays in supplier recovery—such as Novelis's ongoing repairs at its Oswego facility following a fire—shifts in tariff policy, and the timeline for quality gains to translate into reduced warranty expenses.
Traders are monitoring whether the premarket strength persists after the dividend adjustment is factored into the share price at the open. Ford is scheduled to report its first-quarter 2026 results after the market closes on April 28.
