F 2026 Q2

Company revenue fell 4% year over year to $48.3 billion, driven by expected volume reduction from lower Novelis aluminum supply and the sunsetting of certain vehicles as the portfolio is refreshed.

“Revenue was impacted due to expected volume reduction stemming from lower Novelis aluminum supply and the sunsetting of certain vehicles as we refresh our portfolio.”— Sherry House, Chief Financial Officer

Ford Pro revenue and EBIT fell 5% and 26% respectively due to the temporary Novelis aluminum disruption, but management expects a second-half volume recovery to restore the segment's trajectory.

“This resiliency positions Pro to benefit from second-half volume recovery.”— Sherry House, Chief Financial Officer

Ford's number-one ranking among mainstream brands in J.D. Power's 2026 Initial Quality Study is framed as the start of a virtuous cycle expected to lower warranty costs and drive stronger future pricing power.

“Ford finished number one among all mainstream brands in J.D. Power's 2026 Initial Quality Study.”— James D. Farley Jr., President and CEO

Ford Blue revenue rose 17% even as wholesales fell 8%, as higher net pricing and favorable regulatory-enabled mix more than offset the volume decline.

“higher net pricing more than offsetting an 8% decline in wholesales”— Sherry House, Chief Financial Officer

Model e's incentive costs fell after U.S. regulatory relaxation reduced required EV incentives, a shift from prior higher-incentive conditions that aided profitability.

“lower U.S. incentives following regulatory relaxation”— Sherry House, Chief Financial Officer

2027 model-year Ford Pro customer contracting in North America is running about a month ahead of last year's pace, an early sign of accelerating order momentum versus the prior year.

“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.”— Sherry House, Chief Financial Officer

F-Series inventory has fallen to about 45 days' supply, unusually lean for the truck, indicating demand outpacing production and creating wholesale upside as supply recovers.

“we are seeing F-Series around a 45-day supply, which for us is very lean”— James D. Farley Jr., President and CEO

Ford Energy's customer contracting process has advanced from an early 'first or second inning' to the 'third inning' of selling out 2028 capacity, with demand broadening beyond utilities to a wider customer base.

“I would say we are in the third inning of selling out the 2028 capacity of 20 gigawatt-hours.”— James D. Farley Jr., President and CEO

Ford signed its first contract with the U.S. federal government to build three Super Duty-based military prototypes, marking a new defense-adjacent market entry for the company.

“We did sign a contract with the U.S. federal government to produce three prototypes they are considering, based on Super Duty for military use.”— James D. Farley Jr., President and CEO

The new UEV platform is moving from prototype testing to production, with customer deliveries of the affordable ~$30,000 EV beginning next year, a new offering management says has no current market equivalent.

“Customer deliveries will begin next year.”— James D. Farley Jr., President and CEO

Ford newly announced Apple as the embedded map provider for every UEV platform vehicle, adding a differentiated software feature ahead of the platform's launch.

“we just announced Apple last week will be the embedded map provider for every UEV platform vehicle”— James D. Farley Jr., President and CEO

Off-road and passion vehicles (Bronco, Tremor, Raptor) grew to 25% of U.S. sales with record first-half Bronco sales, and management expects this mix strength to continue through year end.

Per Andrew Frick, President, Ford Blue and Model e

Total paid software subscriptions grew about 50% to roughly 1.6 million, with BlueCruise paid subscriptions up 20% in the quarter and now half of retail integrated services revenue.

“Total paid subscriptions grew about 50% to roughly 1.6 million”— Sherry House, Chief Financial Officer

Commodity costs are swinging from a roughly $500 million year-over-year tailwind earlier in the year to a projected $900 million second-half headwind, reversing the favorable trend seen in the first half.

“in the second half you are going to have another roughly $900 million headwind”— Sherry House, Chief Financial Officer

Full-year adjusted EBIT guidance was raised and narrowed to $10-11 billion, a $1 billion increase at the midpoint, driven by stronger-than-expected pricing and mix.

“raising and narrowing our full year adjusted EBIT guidance to between $10 billion and $11 billion, a $1 billion raise at the midpoint”— James D. Farley Jr., President and CEO

Management outlined 2027 EBIT puts and takes versus 2026: tailwinds from non-repeat of Novelis temporary costs and continued cost/warranty reductions, offset by non-repeat of the $1.3 billion AIEA tariff benefit and four quarters of commodity headwinds versus three.

Per Sherry House, Chief Financial Officer

Ford Credit's full-year EBT guidance was raised to above $2.5 billion, reflecting stronger financing margin and portfolio quality than previously expected.

“for Ford Credit, EBT is now expected to be above $2.5 billion”— Sherry House, Chief Financial Officer

Model e posted its third consecutive quarter of year-over-year EBIT improvement, with the loss narrowing 31%, driven by structural cost reductions and right-sized volumes.

“This was our third consecutive quarter of year-over-year EBIT improvement.”— Sherry House, Chief Financial Officer

Management now expects Model e's Gen 1 EBIT to improve about 40% year over year in 2026, funding incremental UEV and Ford Energy investment.

“we expect to improve Gen 1 EBIT by approximately 40% year over year in 2026”— Sherry House, Chief Financial Officer

Management sees potential for software and physical services to eventually contribute about half a percentage point of company-wide margin, a new explicit target for this growing revenue stream.

“We could absolutely see this business — the integrated services — being half a percentage point of margin for the company.”— Sherry House, Chief Financial Officer

Full-year Novelis-related temporary cost impact is now tracking to about $1.5 billion, the lower end of the previously guided $1.5-2 billion range.

“Before we thought $1.5 to $2 billion but now it is tracking at the lower end.”— Sherry House, Chief Financial Officer

The number of vehicle recalls is down about 40% year over year, reflecting quality improvements that are expected to further reduce future recall and warranty costs.

“the number of recalls is down very substantially from last year — it is down about 40%”— Ashwani Kumar Galhotra, Chief Operating Officer

Warranty and material costs have been significantly reduced since 2024, with continued cost optimization planned as the company enters a heavy new product launch period.

“We have significantly reduced our warranty and material cost since 2024”— James D. Farley Jr., President and CEO

Ford maintained unusually low F-Series rental channel volume even as competitors increased their rental volumes year over year, reflecting a more disciplined go-to-market strategy versus rivals.

“we have had really low rental volume where a lot of our competitors have really increased year over year”— Andrew Frick, President, Ford Blue and Model e

Full-year U.S. industry pricing outlook was raised about half a point to plus 50 basis points, an improvement versus the prior expectation.

Per Sherry House, Chief Financial Officer

Ford is pushing for a revised USMCA that levels the playing field against Japanese and South Korean automakers benefiting from weak currencies, a new strategic advocacy position amid early-stage negotiations.

“We are prepared to support revising USMCA so long as it allows the promotion of a more competitive U.S. auto sector.”— James D. Farley Jr., President and CEO

Ford and Unifor ratified a new three-year labor agreement covering all Canadian employees, securing labor stability supporting the Oakville expansion.

“reaching a ratified three-year agreement covering all of our Canadian employees”— James D. Farley Jr., President and CEO

U.S. regulatory changes enabled a more favorable product mix for Ford Blue in the quarter, contributing to revenue and pricing gains that were not present under prior rules.

“reflecting favorable product mix enabled by U.S. regulatory changes and higher net pricing”— Sherry House, Chief Financial Officer

Ford newly announced an agreement with Geely intended to bring speed and capital efficiency to its European operations, a strategic shift in how it runs the region.

“we announced our agreement with Geely, which will bring speed and capital efficiency to our European operations”— James D. Farley Jr., President and CEO

Ford recognized a $3.6 billion one-time charge tied to the May disposition of the BlueOval SK Battery joint venture, with most remaining cash charges expected completed by year end.

“This charge was related to the May disposition of the BlueOval SK Battery joint venture.”— Sherry House, Chief Financial Officer