Ford raised its full-year adjusted EBIT guidance to $10 billion to $11 billion on July 28, 2026, up from a prior $8.5 billion to $10.5 billion. The company also lifted its adjusted free cash flow target to $6 billion to $7 billion, citing an earlier-than-expected $500 million tariff reimbursement and a stronger mix of profitable trucks and commercial vehicles. Ford reported adjusted EPS of $0.42, above the LSEG consensus of $0.35, while revenue slipped to $48.3 billion. Management said the results show the F-Series production recovery is on track and that Ford Blue and Ford Pro produced most of the quarter's profit.
42 cents a share, adjusted, was Ford's Q2 EPS and the number that moved the stock, rising above the LSEG consensus of $0.35 and prompting nearly a 7 percent jump in after-hours trading. Total revenue fell to $48.3 billion, down about 4 percent year over year, but adjusted EBIT climbed to $2.5 billion, a 17 percent increase from a year earlier. Management attributed the profit gain to stronger pricing, a higher mix of profitable trucks and commercial products, and operational improvements despite lower volumes caused by supply disruptions and model retirements.
Earnings and guidance
The guidance lift was specific: full-year adjusted EBIT is now expected at $10 billion to $11 billion, up from $8.5 billion to $10.5 billion, and adjusted free cash flow is targeted at $6 billion to $7 billion, up from $5 billion to $6 billion. Ford said an earlier-than-expected $500 million cash recovery tied to a previously disclosed tariff reimbursement helped the outlook. The company also cited a $500 million expected improvement in the Ford Blue business and narrowed fleet business expectations to $7.0 billion to $7.5 billion from a previously wider range.
CEO Jim Farley said in a release that the quarter showed the company is "becoming a more profitable, more disciplined and genuinely different company." CFO Sherry House told reporters the recovery of F-Series pickup production will continue into the back half of 2026. Management highlighted that Ford Blue, the internal-combustion business, and Ford Pro, the commercial division, accounted for most of the quarter's profit.
Operational detail and one-time charges complicated the headline. On a GAAP basis, Ford recorded a net loss of $1.3 billion for the quarter, driven by $4.2 billion of one-time charges tied to its pullback in all-electric vehicle programs. Those charges included a $3.6 billion restructuring at the BlueOval SK battery joint venture and $500 million from a canceled EV program. Ford narrowed expected Model e losses for the year to about $4 billion, down from a prior projection of $4.0 billion to $4.5 billion.
Still, cash metrics strengthened the company's position. Adjusted free cash flow for the quarter was $2.1 billion, cash on hand totaled $22.3 billion, and total liquidity stood at $43.4 billion. Management reiterated planned material and warranty cost reductions of roughly $1 billion for the full year despite recent recalls.
The guidance raise factored in the one-time tariff reimbursement and the tightening of fleet expectations, showing management's focus on converting operational gains into improved cash and profit margins.
Ford's immediate operational priorities are clear: reduce costs, improve quality and return the portfolio to higher-margin vehicles while scaling Model e with lower expected losses for the year. Executives said the F-Series production recovery will continue into the second half of 2026, a timetable that underpins the upgraded outlook for EBIT and free cash flow.
For investors, the quarter is a mix of durable cash generation and structural write-downs. The adjustment to guidance leans on the internal-combustion business and commercial sales to carry near-term profitability while the company reshapes its EV strategy and absorbs the BlueOval SK restructuring.
Ford expects the F-Series production recovery to extend into the second half of 2026, a timeline the company tied directly to its raised EBIT and free cash flow guidance. Originally reported by CNBC.
This article was created with AI assistance.
