Ford Estimates FY26 Charges Of $500M-$1B Related To Initiated Actions, Mostly Attributable To Employee Separations; Company Started To Get Federal Reimbursements Including ~$500M In Q3 Related To IEEPA And Tariff Rulings

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.

As of September 30, 2026, we expect to receive about $2.2 billion related to tariff reimbursements from the federal government and suppliers and as offsets to Company payment obligations to suppliers attributable to tariff actions taken by the U.S. government since March 2025.

Although we have started to receive reimbursements from the federal government, including about $500 million in the third quarter of 2026 related to the International Emergency Economic Powers Act ("IEEPA") and tariff rulings from the United States Supreme Court and the Court of International Trade in the first quarter of 2026, the timing for our receipt of these reimbursements is uncertain and is subject to changes in trade policy.