Ford Motor reported second-quarter results that exceeded Wall Street earnings expectations, prompting the company to raise its full-year financial guidance. The Detroit automaker’s stock rose nearly 7% in after-hours trading following the announcement.
The company raised its full-year adjusted earnings before interest and taxes guidance to a range of $10 billion to $11 billion, up from the previous $8.5 billion to $10.5 billion. Ford also increased its adjusted free cash flow expectations to $6 billion to $7 billion from the prior $5 billion to $6 billion range. The improved cash flow guidance included an earlier-than-expected recovery of $500 million related to a previously announced tariff reimbursement of $1.3 billion.
Operational performance across Ford’s business segments contributed to the raised outlook. The company’s traditional Ford Blue business was expected to generate between $5 billion and $5.5 billion, an improvement of $500 million. The fleet business narrowed its expected earnings range to $7 billion to $7.5 billion. Additionally, Ford reduced anticipated losses for its Model e electric vehicle business to approximately $4 billion from the previous range of $4 billion to $4.5 billion.
Despite the positive earnings beat, Ford reported a net loss of $1.3 billion during the quarter, primarily attributable to one-time charges related to the company’s adjusted electric vehicle strategy. These charges included $3.6 billion in restructuring costs for a joint venture battery plant and $500 million for a canceled EV program. Total company revenue declined 4% year-over-year to $48.3 billion.
Ford management emphasized recovery progress in key product lines, particularly the F-Series pickup truck. Production disruptions caused by fires at an aluminum supplier facility were expected to generate a roughly $1 billion improvement compared with the prior year, with this recovery continuing through the remainder of the year. The company expected to recover approximately $2.5 billion in lost vehicle volume from the supply chain disruption.
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