Ford Boosts Full-Year Profit Outlook on Strong Demand for Trucks and SUVs

Ford Motor Co. on Tuesday raised its annual profit forecast for the second time this year, signaling strong pricing power and resilient consumer demand for its core lineup of gasoline-powered trucks and SUVs. The company now expects full-year adjusted earnings before interest and taxes (EBIT) to be in the range of $10 billion to $11 billion.

This marks a significant upgrade from the guidance issued in April, which projected EBIT between $8.5 billion and $10.5 billion. Ford attributed the improved outlook to operational efficiencies and sustained profitability in its traditional vehicle business.

Quarterly Performance Highlights

Ford's confidence stems from a solid second-quarter performance where its core profit rose nearly 20% to $2.5 billion. The automaker reported revenue of $48.3 billion and adjusted earnings per share of 42 cents, beating LSEG analyst forecasts of 35 cents per share.

However, the company posted a quarterly net loss of $1.3 billion. Ford attributed this loss to one-time charges associated with the previously announced dissolution of a joint venture with battery maker SK On. CFO Sherry House noted that the company's "industrial system is getting fitter" and that customers have remained "quite resilient."

EV Losses and Production Headwinds

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While the traditional auto segment remains strong, Ford's electric vehicle and software unit continues to face challenges. The division recorded a loss of $919 million in the second quarter, and the company projects the unit will lose approximately $4 billion for the full year.

Ford's U.S. sales figures reflect this split performance. Overall vehicle sales were down 9.6% in the first half of the year, while EV sales specifically fell 57.4% during the same period. The company also continues to manage tariff-related costs, which it expects to be around $1 billion for the year, partly due to sourcing alternative aluminum supplies.

Strategic Focus and Competitive Landscape

Looking ahead, Ford is continuing its strategic push into EVs by planning a $30,000 electric pickup for production in 2027. The automaker is also deepening its reliance on global partnerships, including a new joint venture with China's Geely to manufacture vehicles at Ford's factory in Valencia, Spain.

The updated guidance places Ford on a similar trajectory to competitor General Motors, which also recently raised its full-year forecast. In contrast, EV-focused rival Tesla missed second-quarter profit expectations and reported negative free cash flow.