Ford Motor Co. on Wednesday declared a $1.3 billion net loss in the second quarter of 2026 related to one-time special charges for changes in its electric vehicle plans, but the company increased its financial guidance for the year on strong pricing, mix and demand.
The Dearborn automaker now is forecasting annual operating income of $10 billion to $11 billion, up from the $8.5 billion to $10.5 billion projection it gave earlier this year and the $6.8 billion earned in 2025. Despite inflation, higher fuel prices and interest rates, consumer demand remained resilient in the second quarter for the trucks, SUVs and off-roaders that Ford offers, resulting in an adjusted operating income of $2.5 billion, up 19% year-over-tear, said Sherry House, Ford chief financial officer.
“We are not seeing a disruption today,” she said on a virtual briefing with reporters. “And Ford’s consumers have been quite resilient.”
Ford’s net loss was up from a loss of $36 million in the April-through-June quarter a year ago. The increase came from a one-time special item charge share previously of $3.6 billion from the dissolution of its electric vehicle battery joint venture with South Korea-based SK On Ltd. and related cancellations of EV programs announced in December. Of those charges, $3 billion is non-cash. A majority of the remaining $2 billion in costs related to those moves are expected before the end of the year. Meanwhile, they position Ford to supply batteries for energy storage applications through its subsidiary Ford Energy that is a key part of getting its Model e EV division out of the red.
“Our demand signal has been very strong,” House said. “We have many potential customers that are reaching out to us first, and they really are coming from a wide range of areas, from utilities, from power generation, to companies that are building out the future data centers.”
Ford recorded $48.3 billion in revenue in the second quarter, down 3.8% from the discontinuation of low-margin vehicles in North America and Europe like the Escape crossover and production limitations because of an aluminum supply shortage from a Novelis Inc. plant that caught fire multiple times last fall. Ford’s adjusted earnings per share came in at 42 cents, up 14%. Ford beat average analyst expectations of $45.8 billion in revenue and 35-cent earnings per share.
“We delivered another strong quarter and raised our full-year guidance, but the more important story is thegrowing evidence that Ford is becoming a more profitable, more disciplined and genuinely different company,” Ford CEO Jim Farley said in a statement. “Our iconic trucks, off-roaders and hybrids are commanding real pricing power; our quality is now industry-leading in the U.S.; and profitable new adjacencies, such as Ford Energy, are opening fresh sources of growth.”
Ford’s adjusted operating income margin was 5.2%, up from 4.3%, with a target of 8% by 2029. It expects a $1 billion operating earnings impact year-over-year from improvements in aluminum supply with Ford back to having full aluminum supply from Novelis around September, a $1 billion improvement in material costs and a less than $1 billion net impact from tariffs.
Ford Blue, the company’s internal combustion engine and hybrid vehicle business, posted operating income up 72% to $1.135 billion from truck demand and nearly a quarter of U.S. sales being high-profit, off-road trims. Its 4.4% operating margin increased from 2.6% a year ago. Annual earnings guidance increased $500 million, to $5 billion to $5.5 billion.
Ford Pro, the commercial vehicle business, reported $1.718 billion in operating income, down 26% year-over-year from the impact of the aluminum shortage, and a 9.7% operating margin compared to 12.3% a year ago. Annual earnings guidance narrowed to $7 billion to $7.5 billion from $6.5 billion to $7.5 billion.
“Customer demand remains exceptionally strong,” House said. “In 2027, model year contracting in North America is running a full month ahead of last year’s pace.”
The loss posted by Ford Model e, the business unit dedicated to electric vehicles, was $919 million compared to $1.329 billion in the second quarter of 2025. Revenue from the division fell 5% to $17.8 billion. Ford has said it expects Model e to post profits by 2029. It expects earnings for the division in 2026 will come in at the low end of its previously stated $4 billion to $4.5 billion guidance.
The company also is on track to launch in 2027 the first vehicle — a midsize truck starting at $30,000 — off its next-generation Universal Electric Vehicle Platform. Equipment installation at Louisville Assembly Plant in Kentucky is in the final stages, House said.
Adjusted free cash flow was $2.1 billion, and Ford predicts the measure will range from $6 billion to $7 billion for 2026, up from the previously stated $5 billion to $6 billion. That includes cash recovery of about $500 million in federal tariff reimbursements of the $1.3 billion it forecasted previously after the U.S. Supreme Court struck down duties implemented by President Donald Trump under the International Emergency Economic Powers Act.
Ford will pay a 15-cent regular dividend on Sept. 1 to shareholders of record on Aug. 11.
Last week, General Motors Co. reported $3.9 billion in net income in the second quarter and increased its annual operating earnings guidance to $14 billion to $16 billion. Chrysler and Jeep parent Stellantis NV will report second-quarter results on Thursday.
bnoble@detroitnews.com
@BreanaCNoble
This article originally appeared on The Detroit News: Ford posts 2Q loss on EV charges but ups profit guidance
Reporting by Breana Noble, The Detroit News / The Detroit News
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By Breana Noble, The Detroit News | USA TODAY Network
