Ford Raises Annual Guidance After Strong Second-Quarter Profits

Ford Motor Company raised its annual earnings before interest and taxes guidance for the second time this year, now projecting between $10 billion and $11 billion. The company also increased its free cash flow guidance to between $6 billion and $7 billion, citing strong pricing and a resilient consumer base for F-Series trucks, Bronco, and hybrid models.

For the second quarter, Ford reported revenue of $48.30 billion and an adjusted earnings per share of $0.42, exceeding analyst expectations. Core profit rose nearly 20 percent to $2.5 billion, with the Ford Blue segment seeing a 72 percent EBIT increase to $1.1 billion. However, the company reported a GAAP net loss of $1.3 billion, primarily due to a $3.6 billion non-cash charge from dissolving a battery joint venture with SK On.

Operational challenges included a $1 billion net tariff cost linked to aluminum supply disruptions following fires at supplier Novelis, which contributed to a 26 percent EBIT decline in the Ford Pro segment. While the Model e electric vehicle unit narrowed its EBIT loss to $919 million, the division expects annual losses of $4 billion amid a 57.4 percent drop in U.S. EV sales during the first half of the year. To pivot, Ford plans to produce a $30,000 electric pickup in Kentucky by 2027 and has partnered with Geely to manufacture vehicles in Valencia, Spain.