“adjusted free cash flow of $5 billion to $6 billion”

In context

“warranty, other cost improvements, and growth in software and physical services were more than offset by planned and unplanned lost production and adverse exchange. Ford Credit delivered full-year EBT of $2.6 billion and distributions of $1.7 billion. EBT was up 55% for the year, reflecting improved financing margin. Ford Credit continues to originate a high-quality book with U.S. retail and lease FICO scores exceeding 750. We are excited about the recent approval of our industrial bank application. This long-term initiative will expand our capabilities, enabling us to offer additional savings options to customers, further diversify and lower our cost of funding over time. So let me turn to our 2026 outlook. For the full year, we expect company adjusted EBIT of $8 billion to $10 billion, adjusted free cash flow of $5 billion to $6 billion, and capital expenditures of $9.5 billion to $10.5 billion. As we shift capital to higher return growth opportunities across our portfolio, including roughly $1.5 billion for Ford Energy. Our full-year outlook for the industry assumes a U.S. SAAR of 16 million to 16.5 million in flat industry pricing. Excluding Novelis, tailwinds and headwinds for Ford include positive market factors, including favorable mix associated with the sunset of low margin nameplates, and benefits from changes in the U.S. regulatory environment. Flat cost, which I would like to unpack further, we expect lower tariff costs of about $1 billion, reflecting a full year's worth of credit expansion. We also expect further material and warranty cost reductions building off our momentum in 2025. These combined savings al”