Ford Motor Q2 Earnings Call Highlights

Key Points

• 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.

Guidance Raised as Pricing and Mix Strengthen

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.

Segment Results Reflect Mix Gains and Aluminum Disruption

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 the Bronco family recorded its best first-half sales, while off-road mix rose more than four percentage points year over year in the quarter. Ford’s Raptor sales increased 9% year to date, and Tremor models represented 15% of Expedition sales.

Ford Pro earned $1.7 billion in EBIT on $17.8 billion of revenue, with EBIT down 26% and revenue down 5%, primarily because of the temporary Novelis aluminum disruption. Ford expects postponed Super Duty fleet orders to be recovered in the second half, according to Ford Pro President Alicia Boler Davis.

The Oakville facility is expected to begin operations in the fourth quarter and add capacity for up to 100,000 additional Super Duty units. Boler Davis said Ford Pro expects to return to its 2025 revenue run rate by year-end as Super Duty availability improves.

Model e reported an EBIT loss of $919 million on $1 billion in revenue, representing a 31% year-over-year improvement in EBIT. House said this was the segment’s third consecutive quarter of year-over-year EBIT improvement, reflecting structural cost reductions, lower incentives and right-sized first-generation EV volumes.

Novelis Recovery, Quality Progress and Software Growth

Ford said it is progressing through its Novelis aluminum-supply recovery plan. The company incurred about $800 million in related temporary costs through the first half and now expects a full-year impact of approximately $1.5 billion. The hot-mill restart is on track and contingency material has been secured, House said.

CEO Jim Farley said F-Series inventory stood at about a 45-day supply, which he characterized as lean. Ford’s overall U.S. retail inventory was at a 52-day supply, slightly below its 55- to 65-day target range.

Farley also highlighted Ford’s ranking as the top mainstream brand in J.D. Power’s 2026 Initial Quality Study. Chief Operating Officer Kumar Galhotra said recalls have affected about 12 million vehicles this year, while the number of recalls is down about 40% from last year. He said newer model years are showing improvement in recall volumes and warranty performance.

Ford’s paid subscriptions grew roughly 50% to about 1.6 million, including more than 900,000 Ford Pro Intelligence paid subscriptions. Farley said BlueCruise accounted for 50% of retail Integrated Services revenue, while paid BlueCruise subscriptions rose 20% in the second quarter. He added that the company could see Integrated Services contribute roughly half a percentage point to company margin over time.

EV, Energy Storage and Other Growth Initiatives

Ford said customer deliveries of its first Universal EV platform vehicle will begin next year. Farley described the planned product as an approximately $30,000 pickup with more cabin room than a Toyota RAV4, a truck bed, bi-directional charging and embedded Apple Maps.

The company is also expanding Ford Energy, its stationary energy-storage business. Farley said Ford expects to reach 20 gigawatt-hours of annual Ford Energy capacity by late next year and is in discussions with a broad range of customers. He said the company is in the “third inning” of selling its planned 2028 capacity and has the ability to expand capacity at Kentucky 1.

Separately, Farley said Ford signed a contract with the U.S. federal government to produce three Super Duty-based prototypes for potential military use. He said Ford is discussing other defense-related opportunities but provided no additional details.

About Ford Motor (NYSE:F)

Ford Motor Company NYSE: F is an American multinational automaker headquartered in Dearborn, Michigan. Founded by Henry Ford in 1903, the company became an early pioneer of mass-production techniques with the Model T and the adoption of the moving assembly line. Today, Ford designs, manufactures, markets and services a broad range of vehicles and mobility solutions under the Ford and Lincoln brands, spanning passenger cars, SUVs, pickup trucks and commercial vehicles.

Ford's business activities extend beyond vehicle production to include parts and aftermarket services, fleet and commercial sales, and automotive financing through Ford Motor Credit Company.

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