Ford Motor Co. reported mixed second-quarter results, exceeding analyst expectations for adjusted earnings per share but seeing a decline in total revenue. The company posted adjusted earnings per share of 42 cents, surpassing LSEG analyst forecasts of 35 cents per share. Revenue for the quarter came in at $48.3 billion, a decrease of $1.9 billion from the previous year's quarter. Despite the revenue dip and a net loss of $1.3 billion, Ford's underlying business strength and improved outlook led to a significant increase in its stock price, which rose nearly 7% in after-hours trading.
The net loss of $1.3 billion for the quarter was primarily attributed to a $4.2 billion pretax special charge. Of this, $3.6 billion was a non-cash charge related to the dissolution of its BlueOval SK joint venture with SK On, and approximately $500 million was tied to the cancellation of electric vehicle programs, including the transformation of the Ford Lightning pickup into an Extended Range Electric Vehicle (EREV). Despite these charges, Ford's adjusted earnings before interest and taxes (EBIT) rose to $2.5 billion, up $400 million compared to the $2.1 billion in the year-ago quarter. Ford's Model e EV unit reduced its losses to $919 million, a narrower loss compared to $1.3 billion in the prior year, marking its third consecutive quarter of year-over-year profit improvement.
Driven by strong pricing, a favorable product mix, improved underlying costs, and resilient consumer demand, Ford raised its full-year adjusted EBIT guidance to $10 billion to $11 billion, up from its previous range of $8.5 billion to $10.5 billion. The company also increased its expectations for adjusted free cash flow to $6 billion to $7 billion, from $5 billion to $6 billion. Ford CEO Jim Farley highlighted the company's progress in profitability, discipline, and product appeal, particularly noting the "real pricing power" of its trucks, off-roaders, and hybrids. Ford Blue, its traditional business, saw EBIT increase to $1.1 billion from $661 million a year ago, while Ford Pro's commercial business EBIT declined due to aluminum constraints. Morningstar analyst David Whiston noted that Ford's second-half outlook was more positive than GM's due to anticipated F-Series wholesale make-ups, despite global conflicts.
Ford CFO Sherry House confirmed the recovery of F-Series pickup truck production in the latter half of the year, anticipating a roughly $1 billion EBIT improvement. She also mentioned that full-year expected net tariff costs would be "better than a billion" dollars, partly due to a $500 million earlier-than-expected cash recovery from a previously announced tariff reimbursement. Jefferies analyst Philippe Houchois had upgraded Ford's stock to buy from hold prior to the earnings report, predicting a Q2 trough and a building momentum for the company. Ford's stock price closed at $13.90 a share on June 30, up from $10.85 a year prior, reflecting investor confidence in the company's revised outlook and strategic direction.
