Ford Motor Company raised its full-year adjusted EBIT guidance to $10 billion–$11 billion, assuming a US SAR of 16 million to 16.5 million units and a 50-basis point increase in industry pricing. The $1 billion increase in EBIT guidance was attributed to strong pricing power and a favorable product mix, with management specifically highlighting record Bronco sales and the continued dominance of the F-Series franchise in driving results.
The company achieved the number one ranking among mainstream brands in the J.D. Power 2026 Initial Quality Study, which management characterized as a critical foundation for reducing long-term warranty and recall costs. Ford Pro remained the cornerstone business, maintaining market leadership in North America and Europe while managing temporary supply chain disruptions. The Ford Plus initiative expanded beyond vehicle sales into what management described as a flywheel of software and physical services, with paid subscriptions growing 50% to approximately 1.6 million.
Management announced plans to deliver $1 billion in material and warranty cost reductions during the year, with proceeds being reinvested into the Universal EV platform and Ford Energy. Ford Energy is projected to reach 20-gigawatt-hours of annual capacity by late next year, positioning the company as a leading North American energy storage manufacturer. An Oakville expansion is on track to add 100,000 units of Super Duty capacity beginning in Q4, addressing significant pent-up demand in the commercial segment.
The company recognized a $3.6 billion one-time special item charge related to the disposition of the Blue Oval SK Battery joint venture, with a $500 million cash impact. Novelis aluminum supply disruptions resulted in $800 million of temporary costs year-to-date, with the full-year impact now estimated at $1.5 billion. Second-half performance is expected to face a $900 million incremental commodity headwind compared to the first half, alongside accelerated investments in new platforms. Management flagged potential macro risks, noting that guidance excludes impacts from significant escalation in the Middle East or a material US economic downturn.
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