Ford raises annual guidance on strong pricing and resilient consumer demand

• Adjusted earnings per share of 42 cents beat analyst consensus of 35 cents, driven by strong demand for gasoline-powered trucks and SUVs offsetting tariff headwinds
• Ford's EV segment lost $919 million in Q2 with projected annual losses of $4 billion, while U.S. EV sales fell 57.4% in the first half despite plans to launch a $30,000 electric pickup in 2027
• The company faces approximately $1 billion in net tariff costs for the year, slightly improved from earlier projections, as it worked to source alternative aluminum suppliers after fires disrupted Novelis facilities

Ford Raises Annual Guidance on Strong Pricing and Resilient Demand

Key Developments:

Ford Motor raised its 2026 EBIT guidance for the second time this year to $10-11 billion, up from $8.5-10.5 billion in April and $8-10 billion initially. The automaker reported Q2 adjusted EPS of 42 cents, beating the LSEG consensus of 35 cents, with core profit rising nearly 20% to $2.5 billion.

Financial Performance:

Despite strong operational results, Ford posted a Q2 net loss of $1.3 billion due to charges from dissolving its battery venture with SK On. The company faces approximately $1 billion in tariff costs for the year, though this figure may improve slightly. U.S. vehicle sales declined 9.6% in H1 2026 due to production disruptions and model discontinuations.

Business Segments:

Ford's EV division continues struggling, with U.S. EV sales down 57.4% in H1 and Q2 losses of $919 million. The segment projects annual losses of about $4 billion. However, the company plans to launch a $30,000 electric pickup in Kentucky in 2027.

Strategic Initiatives:

CEO Jim Farley emphasized improving cost efficiency in Ford's core gasoline-powered truck and SUV business. The company announced a partnership with Geely to manufacture vehicles at its Valencia, Spain factory, including a new Bronco SUV and jointly developed crossover models starting in 2028.

Market Context:

CFO Sherry House cited "quite resilient" consumer demand offsetting tariff pressures and economic uncertainty. Competitor GM also raised guidance twice this year, while Tesla missed Q2 profit forecasts despite record deliveries.