Key facts
- Ford increased its full-year pretax profit guidance to $10 billion-$11 billion.
- The automaker's second-quarter core profit reached $2.5 billion.
- Ford reported $48.3 billion in revenue for the second quarter.
- A net loss of $1.3 billion was recorded in the second quarter due to joint venture dissolution charges.
- Ford and Geely are forming a joint venture in Spain for vehicle manufacturing.
Ford Motor on Tuesday raised its annual earnings forecast for the second time this year, projecting $10 billion to $11 billion in earnings before interest and taxes. The automaker cited strong pricing and improvements in its core business, particularly gasoline-powered trucks and SUVs, as key drivers for the upward revision.
Ford's finance chief, Sherry House, stated that the company's industrial system is becoming more efficient, with second-quarter results indicating progress toward that goal. The automaker's core profit in the second quarter rose nearly 20% to $2.5 billion, supported by resilient consumer demand in the U.S. that helped offset tariff costs and broader economic uncertainty. Ford previously estimated a net tariff cost of about $1 billion for the year, a figure House suggested would be slightly improved.
Despite these positive trends, Ford reported a second-quarter net loss of $1.3 billion, primarily due to charges from the dissolution of a joint venture with SK On. The company also continues to face challenges in its electric vehicle (EV) segment, recording $919 million in losses and projecting annual losses of approximately $4 billion for the unit. Ford's EV sales in the U.S. fell 57.4% in the first half of the year, though the company plans to begin production of a $30,000 electric pickup in Kentucky in 2027.
Globally, Ford is collaborating with partners like Renault and China's Geely to boost EV production. A recent joint venture with Geely will see vehicles manufactured at Ford's Valencia, Spain factory, with Geely producing two electric SUVs there starting in 2028. Competitors General Motors also raised its full-year guidance, while Tesla missed profit expectations for the second quarter.