Ford lifts profit outlook on SUV demand surge

Ford Motor Co. delivered adjusted earnings of 42 cents per share for the latest quarter, beating Wall Street expectations of 36 cents and raising its full-year 2026 earnings outlook for the second time this year. The automaker now projects adjusted earnings before interest and taxes (EBIT) of $10.5 billion to $11 billion, up from its prior forecast of $8.5 billion to $10.5 billion. Analysts had anticipated around $9.5 billion. The upgraded outlook reflects strong demand for high-margin sport-utility vehicles (SUVs) and pickups, which have offset weaker availability of the top-selling F-Series trucks due to supply disruptions at an aluminum supplier. Ford cited more than $1 billion in tariff costs, primarily driven by the need to import aluminum after fires at Novelis Inc.’s aluminum mill in New York state disrupted supply. The mill resumed operations in Q2 2026, and Ford expects to recover about $2.5 billion worth of lost F-Series production in the second half of the year, though this is at the lower end of its previous forecast of up to $3 billion. The company’s profit surge was also fueled by robust sales of the Bronco and Explorer SUVs, particularly high-margin off-road variants, which helped cushion the blow of reduced F-Series availability. Ford’s shares surged 7.2% in after-hours trading following the announcement, bringing the year-to-date gain to 14%, outpacing the S&P 500 Index. CEO Jim Farley framed the results as evidence of Ford’s transformation into a “more profitable, more disciplined and genuinely different company.” The automaker’s pivot toward profitability comes amid a broader retreat from loss-making EV operations. Ford booked a $3.6 billion noncash charge in Q2 2026 related to the wind-down of its joint venture with South Korea’s SK On for EV battery production in Kentucky, which is being repurposed for energy storage. The company now expects energy storage profits to materialize no earlier than 2028. Ford’s EV sales plummeted 41% in Q2 2026 after discontinuing the F-150 Lightning plug-in pickup as part of $19.5 billion in charges tied to underperforming EV assets. The automaker is shifting its EV strategy to focus on lower-cost models, including a $30,000 small electric pickup truck slated for launch next year, built on Ford’s universal electric vehicle platform at a former SUV factory in Kentucky. Farley has warned that Chinese automakers pose an “existential threat” to Western carmakers, citing their cost and technological advantages, though Ford is also collaborating with Chinese firms—such as Geely Automobile Holdings for co-developed electric SUVs in Europe and Contemporary Amperex Technology Co. (CATL) for battery licensing—to bolster its global competitiveness.