Ford Motor raised its full-year earnings forecast after beating Wall Street's second-quarter expectations, the company announced Tuesday. Shares rose nearly 7% in after-hours trading following the results.
The Detroit automaker reported adjusted earnings per share of 42 cents, compared to the 35 cents analysts had expected. Automotive revenue came in at $44.89 billion, slightly below the $45.86 billion Wall Street had projected. Total revenue, including Ford's financial arm, fell 4% from a year earlier to $48.3 billion.
Ford's updated guidance calls for full-year adjusted earnings before interest and taxes of between $10 billion and $11 billion, up from its previous range of $8.5 billion to $10.5 billion. The company also raised its adjusted free cash flow expectations to between $6 billion and $7 billion, up from the prior range of $5 billion to $6 billion. The company credited operational improvements, resilient vehicle pricing, and a high sales mix of profitable products for the better performance.
"We delivered another strong quarter and raised our full-year guidance, but the more important story is the growing evidence that Ford is becoming a more profitable, more disciplined and genuinely different company," Ford CEO Jim Farley said in a release.
The additional free cash flow includes an earlier-than-expected cash recovery of $500 million from a previously announced $1.3 billion anticipated tariff reimbursement. The guidance raise was also led by a $500 million expected improvement to its traditional Ford Blue business, bringing that segment's projected earnings to between $5 billion and $5.5 billion.
Ford reported a net loss of $1.3 billion during the second quarter, largely due to one-time special charges related to the company's previously announced pullback in all-electric vehicles. Those charges totaled $4.2 billion and included $3.6 billion in restructuring costs related to its BlueOval SK joint venture battery plant with SK On, along with $500 million tied to a canceled EV program. That loss was wider than the $36 million net loss Ford reported during the same quarter in 2025.
Despite those charges, Ford cut its expected full-year losses for its Model e electric vehicle business to approximately $4 billion, down from a previous range of $4 billion to $4.5 billion.
Ford Chief Financial Officer Sherry House said recovery of F-Series pickup truck production would continue into the back half of the year, reconfirming a roughly $1 billion improvement. The company also reconfirmed plans to deliver full-year material and warranty cost reductions of approximately $1 billion, even as the automaker has faced a recent influx of recalls.