Ford Motor Reports Q2 2026 Results: Full Earnings Call Transcript

Ford Motor (NYSE: F ) reported second-quarter financial results on Tuesday. The transcript from the company's second-quarter earnings call has been provided below. APIs provide real-time access to earnings call transcripts and financial data. Visit to learn more.

5 billion in adjusted EBIT. The company raised its full-year adjusted EBIT guidance to between $10 billion and $11 billion. Key strategic initiatives include the Ford Plus plan focusing on core automotive operations, software and services growth, and adjacency businesses like Ford Energy. The company is making significant investments in electrification and expanding its hybrid lineup.

Operational highlights include a strong market position for the F-Series and off-road vehicles, with growth in hybrid vehicle sales. Ford is also expanding production capacity for Super Duty trucks in Oakville. Ford Pro and Model E segments showed positive momentum, with Ford Pro expecting strong recovery in the second half of the year due to Super Duty fleet orders. Model E reported improved EBIT losses driven by cost reductions.

The company is investing in new technologies, including a new UEV platform and Ford Energy, with plans to reach 20 GWh of annual capacity by late next year. Ford is also exploring opportunities in defense contracts. D. Power Initial Quality Study, and highlighted ongoing efforts to reduce warranty and material costs.

Full Transcript Layla, Operator My name is Layla and I will be your conference operator today. At this time I would like to welcome you to the Ford Motor second quarter 2026 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks there will be a question and answer session.

If you would like to ask a question during this time, please use the raise hand feature at the bottom of your screen. At this time I would like to turn the call over to Maria Richardone, Chief Investor Relations Officer. Maria Richardone, Chief Investor Relations Officer Thank you, Layla, and welcome to Ford Motor's second quarter 2026 earnings call. I'm Maria Richardone, Ford's new Chief Investor Relations Officer.

I most recently came from Lockheed Martin where I was Treasurer and Head of Investor Relations. I joined Ford because the opportunity ahead is tremendous. Few companies today are navigating a transformation of this scale and this consequence. My focus will be straightforward, clear, consistent communication with all of you and ensuring the market understands how our differentiated strategy translates into profitable growth, capital discipline and shareholder value.

With that, let's jump in. With me today are Jim Farley, President and CEO, and Sherry House, CFO. Joining us for Q&A is Andrew Frick, President of Ford Blue and Model E, Alicia Bowler Davis, President of Ford Pro, Kumar Galhotra, Chief Operating Officer, and Cathy O'Callaghan, CEO of Ford Credit. Jim will give a high-level overview of the business and Sherry will provide added texture on the financials and guidance.

We will be referencing non-GAAP measures today. S. GAAP measures in the appendix of our earnings deck. com.

Our discussion also includes forward-looking statements. Our actual results may differ. The most significant risk factors are included on page 20 of our deck. Unless otherwise noted, all comparisons are year over year.

Company EBIT, EPS and free cash flow are on an adjusted basis. Upcoming IR engagements include Mike Aragon, President of Integrated Services, at the Goldman Sachs Communacopia and Tech Conference in San Francisco on September 8th and the Morgan Stanley Annual Laguna Conference in Laguna Beach on September 17. Now I will turn the call over to Jim. Jim Farley, Chief Executive Officer Thank you, Maria.

I want to start by thanking our extended Ford team, all of our dealers and our suppliers for their commitment to delivering on our Ford Plus plan. I especially want to highlight all the Ford team members who worked so effectively through the novellas disruption. I also want to recognize our team in Canada along with our labor partners Unifor under the leadership of Lana Payne for reaching a ratified three-year agreement covering all of our Canadian employees. Our business in Canada and our manufacturing operations in Oakville are really important to our future at Ford.

And this agreement also underscores how important USMCA is to our future at Ford and the opportunity we have to build a framework that levels the playing field for North American manufacturers just like Ford against the mass imports from Japan and South Korea that carry a huge currency advantage. 5 billion in adjusted EBIT. We're also raising and narrowing our full-year adjusted EBIT guidance to between $10 billion and $11 billion, a $1 billion raise at the midpoint. The most important part of the quarter is the growing evidence that our strategy is working towards becoming a more profitable, more disciplined and genuinely different company.

Our Ford Plus plan focuses on three complementary areas. Of course, we have first, our core auto operations, our retail and commercial vehicles that are becoming more profitable and more dependable. Second, we have the software and physical services layer which is growing, margin accretive and built in everything we do at Ford. And third, adjacency businesses such as Ford Energy that open all new sources of profit for the company.

We play only where we have real competitive advantage or we can build one. And we're ruthless about where we put our money. Every dollar must earn durable returns and drive profitable growth. So let's talk through each of these areas.

On core automotive operations, our execution is underpinned by a fundamentally stronger industrial system. For more than three years we've been relentless about building top quality and that work is showing up in our home market. D. Power 2026 Initial Quality Study.

We see this win as a first down payment on a much more consequential virtuous circle: going from initial quality to long-term durability, lowering our warranty costs even further, fewer recalls, stronger customer loyalty, more pricing power and, for our conquest and growth, improved resale value. Ford's quality renaissance goes hand in hand with our equally intense drive to improve our cost structure. We have significantly reduced our warranty and material costs since 2024. And we continue to optimize cost as we enter a heavy new product launch period over the next three years.

Turning to the products themselves, we're reinforcing our strength in our trucks, our vans, our personality utility and off-roaders, iconic brands and distinctive products delivering real pricing power. We can see it in the quarter. In Ford Blue, F-Series remains the number one truck brand, outselling the closest competitor by more than 80,000 units in the first half of this year and is on track for 50 straight years at the top. That's five decades of trust and capability with our customers and we intend to extend our lead.

But it's not just F-Series that makes our truck business strong. S. truck market from our Maverick all the way through the top end of our Super Duty. And there's much more to come soon including an all-new F-Series and an all-new Super Duty.

We also continue to see momentum with our off-road enthusiast vehicles. S. sales. In the second quarter, we made a huge bet on Bronco, Tremor and Raptor and it has paid off with higher growth and higher margins.

And these vehicles are bringing new customers to Ford. They're younger, more affluent and more geographically diverse. And we are investing to grow our leadership in this space. Stay tuned.

Hybrids are another strength for Ford. We plan to build on the F-150 Hybrid, which leads among full-size trucks, and the Maverick Hybrid achieved record sales in the first half to become America's best-selling hybrid pickup. We plan to extend our hybrids across our entire lineup over the next several years. On the commercial side, Ford Pro is the cornerstone of our global business and holds commercial vehicle market share leadership in both North America and Europe.

And the Oakville expansion I referred to earlier is on track to launch in the fourth quarter of this year, adding up to 100,000 units of additional Super Duty capacity. We're investing in Super Duty production to increase our manufacturing flexibility, to add resilience and to meet pent-up demand. These investments will help drive Pro's future financial performance. And turning to Model E, we're aggressively driving down Gen 1 costs and will become a major scaled competitor as we invest in affordable, versatile EVs.

The Louisville plant changeover for the new UEV platform is well underway at Ford. S. Customer deliveries will begin next year. S.

EV market, where we'll offer customers a wholly new proposition that we can't find in the market today. It starts around $30,000. It has more cabin room than the Toyota RAV4, plus it has a pickup truck bed. It has bi-directional charging capability, incredibly fun-to-drive and personalized technology in the experience.

In fact, we just announced Apple last week, as you know, will be the embedded map provider for every UEV platform vehicle, and we are very excited to show you much more about our move to be among the leaders in the EV space in Europe. As you saw last week, we announced our agreement with Geely which will bring speed and capital efficiency to our European operations. The second area of our Ford Plus plan is software and physical services, including our parts business.

These businesses have significant room to grow, are central to our 8% margin target by 2029, and the idea is really simple: combine our digital services, our large dealer network, our physical services into one seamless experience, building a flywheel across software, vehicles and parts. On software, we're turning a one-time sale into a lifetime relationship. We said we now have over 14 million connected vehicles. That's an enormous base to grow from.

Our goal is to activate that base, driving real digital usage and convert engagement into recurring high-margin revenues. Our services aren't just digital, they're also physical. We continue to grow our parts business. S.

wholesalers, and co-investing with our dealers to increase service bays and our mobile fleet. Customers love our mobile service. We have over 5,000 mobile service vans and trucks on the road, and we see Net Promoter Scores much higher for remote service, leading to higher loyalty. S.

Finally, we're making progress on our adjacent businesses. Earlier this year we launched Ford Energy reporting through Model E. It's a strategic business for us at Ford, but one with a very short payback. S.

manufacturing; leading battery technology; an iconic American brand that is already familiar to communities who are most in need for grid support and infrastructure upgrades; and of course the ability to leverage our vast auto service expertise. By late next year we expect to reach 20 GWh of annual capacity for Ford Energy, which is—and we have potential to expand beyond that. We believe this will position Ford Energy among the leading energy storage manufacturers in North America. Scale matters in this business.

It drives efficiency, improves the levelized cost of energy and creates a competitive advantage that is hard to match without the scale of global auto to leverage. We're building a business that can integrate further into the energy ecosystem and that aspires to create value far beyond the sale of our DC blocks. Our agreement with EDF Power Solutions North America is a good step to serve a broad and enduring customer base. We're in talks with a wide range of strategic customers and look forward to sharing more with you at the right time.

As you can see, Ford is becoming a more disciplined, higher-return company. We have a strong automotive business with an increased fit industrial system. To complement that business, we're scaling high-margin software and physical services around a seamless customer experience while leveraging Ford Credit, and adjacent to all of that, we're building new businesses like Ford Energy where we can establish a competitive advantage. Over to you, Sherry.

Sherry House, Chief Financial Officer Thank you, Jim, and hello, everyone. Our second quarter results demonstrate our resiliency and intentional actions to drive profitability in a complex macroeconomic and industry environment. 5 billion in adjusted EBITDA, up 17%. Revenue was impacted due to expected volume reductions stemming from lower Novelis aluminum supply and the sunsetting of certain vehicles as we refresh our portfolio.

Consistent with our deliberate actions to enhance profitability, this quarter's EBIT strength was largely a result of strong mix and net pricing. 4 billion in total liquidity. We remain committed to our investment-grade rating and returning capital to shareholders. In fact, over the last five years, we have returned more than $16 billion through dividends and anti-dilutive share repurchases.

15 per share. 3 billion net loss in the quarter. 6 billion, of which approximately $500 million was cash. This charge was related to the May disposition of the BlueOval SK Battery joint venture.

We expect the vast majority of the remaining cash charges related to our December announcement, which total up to $2 billion, to be completed by the end of the year. Operationally, we are successfully navigating the Novelis aluminum supply recovery plan, and we remain confident in our net $1 billion EBIT improvement, heavily weighted to the second half of the year. 5 billion. The hot mill restart is on track and contingency material is secured.

S. inventory is 52 retail days. Supply is slightly below our target of 55 to 65 days, and we expect to return to targeted levels as the recovery progresses. 1 billion.

S. regulatory changes, and higher net pricing, more than offsetting an 8% decline in wholesales. These results demonstrated that our focus on off-road vehicles and passion products is resonating. We had record sales for the Bronco family in Q2, and our three-row adventure utilities are growing with Explorer and Expedition.

Retail sales were up 22% in the quarter. F-150 remains strong while inventories recover, with a disciplined go-to-market execution in Q2 that included the highest retail share, lowest incentive spend, and highest share of revenue, with sales focused through our most profitable channels. 8 billion of revenue, down 26% and 5%, respectively, primarily due to temporary Novelis disruption. We continue to see growth in software and physical services, highlighting the durability of our ecosystem strategy even in periods of disruption.

This resiliency positions Pro to benefit from second-half volume recovery. We are confident in the pricing power of our Pro business, and although early 2027 model year customer contracting in North America is off to a fast start, placing us about a month ahead of where we were last year. For Model e, we reported an EBIT loss of $919 million on revenue of $1 billion, reflecting a 31% EBIT improvement on declining revenue. This was our third consecutive quarter of year-over-year EBIT improvement.

S. incentives. Following regulatory relaxation, we continue to prioritize profitability and capital efficiency on our path to break even. As such, we expect to improve Gen1 EBIT by approximately 40% year over year in 2026, paving the way for our investments in UEB and Ford Energy.

Our software and physical services keep getting stronger. 6 million, including more than 900,000 Ford Pro Intelligence paid subscriptions. Customers are actively choosing to pay for these services beyond an included trial, a direct signal of value.