Ford Motor raised its full-year earnings forecast after beating Wall Street’s second-quarter earnings expectations despite declining revenue. The Detroit automaker reported an adjusted earnings per share of 42 cents against 35 cents expected, while noting that F-Series truck production is recovering from aluminum supply disruptions.
Ford Motor raised its annual guidance for a second time this year, projecting full-year earnings before interest and taxes of between $10 billion and $11 billion. The upward revision follows an earlier guidance bump in April to a range of $8.5 billion to $10.5 billion, up from an initial start-of-year projection of $8 billion to $10 billion.
The automaker reported an adjusted earnings per share of 42 cents, topping the LSEG consensus estimate of 35 cents. Automotive revenue landed at $44.89 billion, falling slightly short of the $45.86 billion expected by analysts according to financial reporting from CNBC. Total revenue, which includes Ford’s financial arm, dropped 4% during the second quarter compared to the same period a year earlier, reaching $48.3 billion as tracked in market coverage from Seeking Alpha.
Financial Adjustments Across Business Segments
The earnings raise was spearheaded by a projected $500 million improvement to the traditional Ford Blue business segment, lifting its expected range to between $5 billion and $5.5 billion. Management also narrowed the earnings forecast for its fleet business, Ford Pro, to between $7 billion and $7.5 billion from a previous low range of $6.5 billion.
At the same time, expected losses for the Model e electric vehicle business were trimmed to about $4 billion, improving from earlier projections of losses between $4 billion and $4.5 billion. Ford’s credit arm is also anticipated to post slightly better results.
Despite operational gains, Ford registered a net loss of $1.3 billion for the second quarter. The loss was driven largely by one-time special charges connected to the company’s pullback from all-electric vehicles, including $3.6 billion in restructuring costs for the BlueOval SK battery plant joint venture with SK On and a $500 million charge for a canceled EV program as detailed in financial disclosures.
F-Series Production Recovery and Aluminum Supply
Behind the improved financial guidance is a stabilizing industrial pipeline following heavy disruptions earlier in the year. Production bottlenecks for Ford’s F-Series pickup trucks stemmed from two fires at Novelis, an aluminum supplier that provides material for the automaker’s large trucks and SUVs.
Novelis restarted production at its New York manufacturing facility in June, enabling Ford to ramp up assembly lines according to reporting by Reuters. Finance chief Sherry House indicated that the automaker expects to recover roughly $2.5 billion of the vehicle volume lost to the fires, marking the lower end of a prior estimated range that reached up to $3 billion.
House added that the second-quarter performance benefited from consumer demand described as quite resilient
in statements covered by international business wire services. Ford also reconfirmed its plan to deliver full-year material and warranty cost reductions of approximately $1 billion, absorbing an influx of recent vehicle recalls.
Global EV Partnerships and Free Cash Flow Outlook
Ford continues to alter its global electric vehicle strategy by leaning on regional joint ventures. The company announced a partnership with China’s Geely earlier in the month to manufacture vehicles at Ford’s Valencia factory in Spain. Under that agreement, Ford will maintain production of the Kuga plug-in hybrid alongside a new Bronco SUV, while Geely plans to manufacture two electric SUVs at the site beginning in 2028.
For the broader cash outlook, Ford raised its expectations for adjusted free cash flow to a range of $6 billion to $7 billion, up from an earlier forecast of $5 billion to $6 billion. The upward adjustment includes an earlier-than-expected cash recovery of $500 million from a previously announced $1.3 billion anticipated tariff reimbursement.
Ahead of the earnings release, Jefferies upgraded shares of both Ford and General Motors to a buy rating. Analyst Philippe Houchois noted that the second quarter would likely serve as a low point for sales volume before post-Novelis manufacturing normalization takes hold according to market analysis published by CNBC.
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