Ford Motor increased its full-year earnings forecast following second-quarter results that exceeded analyst expectations, despite reporting a revenue decline that marginally fell short of estimates. The Detroit automaker’s stock gained nearly 7% in after-hours trading following the announcement.
The company raised its full-year adjusted earnings before interest and taxes to a range of $10 billion to $11 billion, up from the previous guidance of $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 range of $5 billion to $6 billion. The improved cash flow outlook included a $500 million tariff reimbursement received ahead of schedule from an anticipated $1.3 billion recovery.
Operational performance across Ford’s business segments showed mixed results. The traditional Ford Blue division was expected to generate $5 billion to $5.5 billion in earnings, improved by $500 million from prior forecasts. The company narrowed its fleet business earnings range to $7 billion to $7.5 billion. However, losses from the Model e electric vehicle business were trimmed to approximately $4 billion compared with previous expectations of $4 billion to $4.5 billion.
Ford reported a net loss of $1.3 billion during the quarter, primarily driven by one-time special charges related to an electric vehicle strategy pullback. These charges included $3.6 billion tied to restructuring of the BlueOval SK battery joint venture and $500 million from a canceled EV program. Total revenue declined 4% year-over-year to $48.3 billion.
The company reconfirmed expectations for F-Series pickup truck production recovery throughout the remainder of the year, anticipating roughly $1 billion in improvement. This recovery follows production disruptions caused by fires at Novelis, an aluminum supplier, with an estimated $2.5 billion in vehicle volume losses expected to be recovered. Ford maintained its guidance for approximately $1 billion in material and warranty cost reductions despite recent recalls.
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