Ford Raises Full-Year Profit Outlook Despite Revenue Decline
The automaker raised its full-year adjusted EBIT guidance to as high as $11.0 billion.
Ford Motor (F), the American automaker, raised its full-year profit and cash flow forecasts after reporting a second quarter defined by a net loss and a sharp contraction in electric vehicle sales.
The company's results reflected a divergence between its internal combustion and electric segments. While the company faced significant non-cash charges and a revenue dip, it improved its overall margin and raised its annual outlook, signaling a shift in its financial trajectory.
Revenue for the second quarter fell 4% to $48.3 billion. The company reported a net loss of $1.3 billion, which included $4.2 billion in pre-tax special item charges. These charges consisted of a $3.6 billion non-cash charge for the BlueOval SK joint venture disposition and $0.5 billion for the cancellation of electric vehicle programs.
Despite the net loss, Adjusted EBIT rose to $2.5 billion, an increase of $0.4 billion year-over-year. The Adjusted EBIT margin expanded 0.9 percentage points to 5.2% from 4.3% in the prior-year period. Adjusted return on invested capital for the trailing four quarters increased to 13.2% from 10.1% a year earlier.
Performance varied across business units. Ford Blue EBIT rose to $1.1 billion, with its margin expanding 1.8 percentage points to 4.4%. Ford Pro EBIT fell to $1.7 billion, down $0.6 billion year-over-year, as aluminum supply constraints related to Novelis compressed its margin by 2.7 percentage points to 9.7%.
The electric vehicle unit, Ford Model e, reported a second-quarter EBIT loss of $919 million. While this marked the third consecutive quarter of year-over-year EBIT improvement, the unit's revenue fell 56% to $1.0 billion, and wholesale units dropped 53% to 28,000 units.
Ford raised its full-year 2026 Adjusted EBIT guidance to a range of $10.0 billion to $11.0 billion from a previous range of $8.5 billion to $10.5 billion. The company also raised its full-year Adjusted Free Cash Flow guidance to between $6.0 billion and $7.0 billion from $5.0 billion to $6.0 billion.
Segment-specific guidance was also adjusted. Ford Blue full-year EBIT guidance rose to $5.0 billion to $5.5 billion, and Ford Pro guidance was raised to $7.0 billion to $7.5 billion. The company narrowed its full-year loss guidance for Ford Model e to approximately $4.0 billion from a prior range of $4.0 billion to $4.5 billion.