Ford shares rose nearly 7% in after-hours trading Tuesday.<\/p>\n
Here’s how the company performed in the second quarter, compared with average estimates compiled by LSEG:<\/p>\n
Earnings per share: 42 cents adjusted vs. 35 cents expectedAutomotive revenue: $44.89 billion vs. $45.86 billion expected<\/p>\n
The Detroit automaker cited operational improvements, resilient vehicle pricing and a high sales mix of profitable products for its performance as well as the improved guidance.\u00a0\u00a0<\/p>\n
Ford’s raised guidance includes full-year adjusted earnings before interest and taxes of between $10 billion and $11 billion, up from $8.5 billion to $10.5 billion. It also raised its expectations for adjusted free cash flow to $6 billion to $7 billion, up from $5 billion to $6 billion.<\/p>\n
The additional free cash flow includes an earlier-than-expected cash recovery of $500 million of a previously announced $1.3 billion <\/a>anticipated tariff reimbursement, the company said.<\/p>\n The earnings raise was led by a $500 million expected improvement to its traditional Ford Blue business to between $5 billion and $5.5 billion. It also narrowed earnings of its fleet business to between $7 billion and $7.5 billion from a previous low range of $6.5 billion.<\/p>\n “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,” Ford CEO Jim Farley<\/a> said in a release.\u00a0<\/p>\n Ford Q2 results<\/p>\n Ford cut expected losses of its Model e EV business to about $4 billion, compared with previous expectations of losses between $4 billion and $4.5 billion, and said it also expected slightly better results for its credit arm.\u00a0<\/p>\n Each of the automotive business groups reported lower revenue compared with what analysts were expecting. Ford’s total revenue, which includes its financial arm, was down 4% during the second quarter compared to a year earlier to $48.3 billion.<\/p>\n Ford reported a net loss of $1.3 billion during the second quarter largely due to one-time special charges related to its previously announced pullback in all-electric vehicles. The $4.2 billion in charges included $3.6 billion in restructuring <\/a>of its BlueOval SK joint venture battery plant with SK On and $500 million due to a canceled EV program.<\/p>\n That loss was wider than the $36 million net loss it reported during the second quarter of 2025.<\/p>\n Stock Chart IconStock chart icon Auto stocks<\/p>\n Ford reconfirmed plans to deliver full-year material and warranty cost reductions of approximately $1 billion despite an influx of recent recalls<\/a> for the automaker.<\/p>\n F-Series on track<\/p>\n Ford CFO Sherry House said the automaker’s recovery of F-Series pickup truck production will continue into the back half of the year, reconfirming a roughly $1 billion improvement compared with last year’s reported impact.<\/p>\n “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.<\/p>\n House declined to disclose why the recovery is on the lower end of its prior estimate, but reiterated that the $1 billion improvement remains.<\/p>\n The automaker has had production problems with its F-Series trucks since Novelis, an aluminum supplier that provides material for its large trucks and SUVs, had two fires that crippled production. It restarted impacted production<\/a> last month at that New York facility.<\/p>\n Ford said Tuesday it expects to recover about $2.5 billion of its vehicle volume lost due to the fires, which was the low end of a range of up to $3 billion.\u00a0<\/p>\n Heading into Ford’s earnings report, Jefferies upgraded<\/a> Ford and General Motors’<\/a> stocks to buy from hold. Analyst Philippe Houchois said Ford is on track to start building momentum again, with the second quarter set to mark a trough.<\/p>\n “We see Q2 as a low point for volume with post-Novelis production set to normalize up,” Houchois wrote. “With US market conditions healthy, management could raise guidance at Q2.”<\/p>\n![\"hide](\"https:\/\/static-redesign.cnbcfm.com\/dist\/a54b41835a8b60db28c2.svg\")
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