Ford Motor Company

Ford reported Q2 revenue of $48.3 billion, down 4% year over year, adjusted EBIT of $2.5 billion, up 17%, adjusted free cash flow of $2.1 billion, and cash of $22.3 billion with total liquidity of $43.4 billion. Ford also reported a net loss of $1.3 billion, tied to a previously announced special item charge. Segment results included Ford Blue EBIT of $1.1 billion on $26.1 billion of revenue, Ford Pro EBIT of $1.7 billion on $17.8 billion of revenue, Model e EBIT loss of $919 million on $1 billion of revenue, and Ford Credit EBT of $757 million. For 2026, Ford now expects company adjusted EBIT of $10 billion to $11 billion, adjusted free cash flow of $6 billion to $7 billion, capex of $9.5 billion to $10.5 billion, Ford Blue EBIT of $5 billion to $5.5 billion, Ford Pro EBIT of $7 billion to $7.5 billion, Model e losses of about $4 billion, and Ford Credit EBT above $2.5 billion.

Jim Farley framed the quarter as evidence that Ford+ is working, emphasizing a more profitable, disciplined company built around core automotive strength, software/services, and adjacencies like energy storage. He pointed to strong quality progress, including Ford being No. 1 among mainstream brands in J.D. Power 2026 initial quality, and said that should ultimately improve durability, lower warranty and recall costs, and support pricing power. His tone was upbeat and strategic, but still focused on capital discipline: he repeatedly stressed that every dollar must earn durable returns and that Ford is being “ruthless” about where it invests.

Sherry House highlighted the main financial drivers: $48.3 billion in revenue, $2.5 billion in adjusted EBIT, and $2.1 billion in adjusted free cash flow, with strength coming from mix and net pricing despite volume pressure from Novelis and portfolio refreshes. She said Ford had $22.3 billion in cash and $43.4 billion in total liquidity, returned more than $16 billion over the past five years, and declared a third-quarter regular dividend of 15 cents per share. She also quantified the Novelis and AIEA effects, saying year-to-date Novelis temporary costs were about $800 million, the full-year impact is now expected to be about $1.5 billion, and Ford expects about $500 million of the $1.3 billion AIEA reimbursement booked in Q1 to arrive in 2026. Capital expenditures remain unchanged at $9.5 billion to $10.5 billion.

Analysts focused on Ford Energy, mix and pricing, F-Series demand, tariff/USMCA exposure, quality-driven warranty savings, BlueCruise monetization, and the second-half EBIT shape. Management said Ford Energy is in the “first or second inning” of contracting for its 2028 capacity and that the business is attracting utilities and other customer types; on mix, Ford said off-road mix was up more than 3.5 points in the first half and should stay strong through year-end. On the back half, management said higher commodity costs, continued investment in UEV and Ford Energy, and the timing of Novelis recovery explain why second-half EBIT should not simply be annualized; they also said Pro should recover as Super Duty supply normalizes.