Dearborn: Ford raised its 2026 earnings guidance Tuesday after second-quarter adjusted profit exceeded expectations, supported by operational improvements, resilient vehicle pricing, and a profitable product mix. The US automaker reported adjusted earnings of $0.42 per share, above estimates.

According to Anadolu Agency, automotive revenue totaled $44.89 billion, below market forecasts, while total revenue, including its financial services business, fell 4% year-on-year to $48.3 billion. Ford increased its full-year adjusted earnings before interest and taxes forecast to between $10 billion and $11 billion from a previous range of $8.5 billion to $10.5 billion. Additionally, the company raised its adjusted free cash flow outlook to $6 billion to $7 billion from $5 billion to $6 billion.

Ford posted a net loss of $1.3 billion for the quarter, compared with a loss of $36 million a year earlier, largely due to $4.2 billion in charges related to its pullback from some electric vehicle investments. The charges included $3.6 billion linked to the restructuring of its BlueOval SK battery joint venture and $500 million related to a canceled electric vehicle program.

The automaker also reduced its expected losses at its Model e electric vehicle business to about $4 billion from a previous forecast of $4 billion to $4.5 billion. Ford stated that the recovery in F-Series pickup production remained on track following disruptions caused by fires at aluminum supplier Novelis' facility. The production recovery is expected to improve adjusted operating profit by around $1 billion in 2026, with most of the benefit anticipated in the second half.

The company maintained its target of reducing material and warranty costs by approximately $1 billion. Following the results, Ford shares rose nearly 7% in after-hours trading.