Ford raises guidance after Q2 earnings beat, says F-Series recovery is on track

DETROIT — Ford Motor raised its 2026 earnings forecast Tuesday after beating Wall Street's second-quarter earnings expectations despite reporting a decline in revenue that slightly missed estimates.

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.

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.

The additional free cash flow includes an earlier-than-expected cash recovery of $500 million of a previously announced $1.3 billion anticipated tariff reimbursement, the company said.

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.

"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 said in a release.

Ford cut expected losses of its Model e electric vehicle 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.

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.

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 of its BlueOval SK joint venture battery plant with SK On and $500 million due to a canceled EV program.

That loss was wider than the $36 million net loss it reported during the second quarter of 2025.

Ford reconfirmed plans to deliver full-year material and warranty cost reductions of approximately $1 billion despite an influx of recent recalls for the automaker.

Ford Chief Financial Officer 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.