Ford Motor Company (NYSE:F) shares climbed more than 4% after the automaker reported better-than-expected second-quarter results and raised its financial outlook for the full year, supported by stronger operating performance across its core business.
The company posted adjusted earnings per share of $0.42 for the quarter, exceeding analysts’ expectations of $0.35. Revenue came in at $48.3 billion, ahead of the consensus estimate of $47.51 billion, although total revenue declined 4% from $50.2 billion in the same period last year.
Adjusted earnings before interest and taxes (EBIT) increased to $2.5 billion, up $400 million year over year.
One-Off Charges Push Ford to Net Loss
Ford reported a net loss of $1.3 billion during the quarter, largely reflecting significant one-time charges rather than underlying operating performance.
The results included a largely non-cash $3.6 billion charge related to the disposition of the BlueOval SK joint venture, along with an additional $500 million in charges associated with previously announced electric vehicle programme cancellations.
Ford Raises 2026 Financial Outlook
Following the stronger-than-expected quarter, Ford increased its guidance for the full year.
The company now expects adjusted EBIT of between $10.0 billion and $11.0 billion, compared with previous guidance of $8.5 billion to $10.5 billion, lifting the midpoint of its forecast by $1.0 billion to $10.5 billion.
Ford also raised its adjusted free cash flow outlook to between $6.0 billion and $7.0 billion, up from its previous forecast of $5.0 billion to $6.0 billion.
Ford President and CEO Jim Farley said: “We delivered another strong quarter and raised our full-year guidance, but the more important story is the growing evidence that Ford is becoming a more profitable, more disciplined and genuinely different company.”
Barclays analysts also welcomed the results, saying the earnings report “cleared elevated investor expectations.”
Ford Blue and Ford Pro Drive Operating Performance
Ford’s traditional internal combustion vehicle business, Ford Blue, generated EBIT of $1.1 billion on revenue of $26.1 billion, with operating profit improving by $500 million compared with the same quarter last year.
Meanwhile, Ford Pro reported EBIT of $1.7 billion on revenue of $17.8 billion, representing a 9.7% EBIT margin. Profit declined by $600 million year over year as the commercial vehicle business continued to recover from aluminium supply chain disruptions.
Model e Losses Continue to Narrow
Ford’s electric vehicle division, Model e, posted an EBIT loss of $919 million during the quarter.
Despite remaining loss-making, the business delivered its third consecutive quarter of year-over-year margin improvement, reflecting ongoing efforts to improve profitability while scaling its EV operations.
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