Ford Motor Q2 Earnings Call Highlights

Ford Motor Q2 Earnings Call Highlights

Ford raised its full-year outlook , increasing adjusted EBIT guidance to $10 billion-$11 billion and adjusted free cash flow guidance to $6 billion-$7 billion, driven by stronger pricing and product mix. Second-quarter revenue fell 4% year over year to $48.3 billion, but adjusted EBIT rose 17% to $2.5 billion. Results were supported by Ford Blue’s mix gains, while Ford Pro was pressured by the Novelis aluminum disruption; the company reported a $1.3 billion net loss after a $3.6 billion special-item charge. Ford continues investing in growth initiatives : Model e losses improved year over year, paid subscriptions reached about 1.6 million, and the company expects to launch its first Universal EV platform vehicle next year while expanding its Ford Energy storage business.

Ford Motor NYSE: F reported second-quarter 2026 revenue of $48.3 billion and adjusted EBIT of $2.5 billion, as stronger pricing and favorable product mix more than offset lower volumes tied to an aluminum supply disruption and vehicle portfolio changes. Revenue declined 4% year over year, while adjusted EBIT increased 17%. The company generated $2.1 billion in adjusted free cash flow and ended the quarter with $22.3 billion in cash and $43.4 billion in total liquidity. Ford also announced a regular third-quarter dividend of $0.15 per share.

The company reported a net loss of $1.3 billion for the quarter, driven in part by a previously announced $3.6 billion one-time special-item charge related to the May disposition of the BlueOval SK Battery joint venture. Chief Financial Officer Sherry House said approximately $500 million of that charge was cash, with most of the remaining cash charges associated with the December 2025 announcement expected to be completed by year-end.

Ford raised and narrowed its full-year adjusted EBIT outlook to $10 billion to $11 billion, increasing the midpoint by $1 billion. The company also lifted its adjusted free-cash-flow forecast to $6 billion to $7 billion, including expected receipt of about $500 million during 2026 from an IEEPA reimbursement booked in the first quarter.

House said the guidance increase was driven by pricing and mix. Ford continues to assume U.S. industry sales of 16 million to 16.5 million units, commodity headwinds of slightly more than $2 billion, and $1 billion in material and warranty cost reductions for the year. The outlook excludes potential effects from a significant escalation in the Middle East or a material downturn in the U.S. economy. Capital expenditures remain projected at $9.5 billion to $10.5 billion. Ford Blue EBIT guidance was increased to $5 billion to $5.5 billion. Ford Pro EBIT guidance was narrowed to $7 billion to $7.5 billion. Model e losses are expected to improve to about $4 billion, including roughly $1 billion of incremental investment in the Universal EV platform and Ford Energy. Ford Credit earnings before taxes are expected to exceed $2.5 billion.

Ford Blue generated $1.1 billion of EBIT on $26.1 billion of revenue. EBIT rose 72% and revenue increased 1%, supported by product mix and net pricing, despite an 8% decline in wholesales. House said the segment benefited from favorable mix enabled by U.S. regulatory changes as well as demand for off-road and higher-trim vehicles. Ford Blue and Model e President Andrew Frick said off-road models accounted for 25% of Ford’s U.S. sales in the second quarter. He said t...