Ford Motor shares surged nearly 7% in after-hours trading Tuesday after the Detroit automaker raised its 2026 earnings outlook and beat analyst expectations for second-quarter earnings, even as revenue fell short of estimates.
The company increased its full-year adjusted earnings before interest and taxes guidance to a range of $10 billion to $11 billion, up from its previous forecast of $8.5 billion to $10.5 billion. Ford also raised its adjusted free cash flow expectations to $6 billion to $7 billion from $5 billion to $6 billion.
“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,” CEO Jim Farley said in a statement.
Ford attributed its performance to operational improvements, resilient vehicle pricing, and a favorable sales mix weighted toward higher-margin products. The improved guidance was driven by a $500 million expected improvement to its traditional Ford Blue business, which now projects earnings between $5 billion and $5.5 billion. The company also narrowed its fleet business earnings forecast to between $7 billion and $7.5 billion.
Revenue Decline and One-Time Charges
Despite the positive earnings results, Ford’s total revenue declined 4% year-over-year to $48.3 billion during the second quarter, slightly missing Wall Street estimates. Each of the company’s automotive business segments reported lower revenue than analysts had anticipated.
The automaker posted a net loss of $1.3 billion for the quarter, significantly wider than the $36 million loss reported in the same period of 2025. The loss was largely attributable to $4.2 billion in one-time special charges related to Ford’s previously announced pullback from all-electric vehicles, including $3.6 billion for restructuring its BlueOval SK joint venture battery plant with SK On and $500 million from a canceled EV program.
EV Losses Narrow
Ford reduced its expected losses for its Model e electric vehicle business to approximately $4 billion, down from previous projections of $4 billion to $4.5 billion in losses. The company said it also anticipated slightly better results from its credit division.
F-Series Production Recovery Continues
CFO Sherry House confirmed that Ford’s recovery of F-Series pickup truck production would continue through the second half of the year, supporting a roughly $1 billion improvement compared to last year’s impact. The production challenges stemmed from two fires at Novelis, an aluminum supplier for Ford’s large trucks and SUVs, which disrupted operations earlier this year.
“We’re successfully navigating the Novelis aluminum supply recovery plan, and we remain confident in our net $1 billion EBIT improvement in 2026, heavily weighted to the second half of the year,” House said during a media call.
Ford expects to recover approximately $2.5 billion of vehicle volume lost due to the fires, representing the lower end of its prior range of up to $3 billion. Novelis restarted affected production at its New York facility last month.
The company reaffirmed plans to deliver full-year material and warranty cost reductions of approximately $1 billion despite an increase in recent recalls. The additional free cash flow guidance includes an earlier-than-expected $500 million cash recovery from a previously announced $1.3 billion anticipated tariff reimbursement.
According to CNBC, Jefferies upgraded both Ford and General Motors to buy from hold ahead of the earnings report, with analyst Philippe Houchois describing the second quarter as a likely trough for Ford. “We see Q2 as a low point for volume with post-Novelis production set to normalize up,” Houchois wrote, adding that healthy U.S. market conditions could support further guidance increases.
Source: www.cnbc.com — https://www.cnbc.com/2026/07/28/ford-motor-f-earnings-q2-2026.html
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