Ford joins GM in raising profit outlook as wealthy buyers keep truck demand humming
Ford joins GM in raising profit outlook as wealthy buyers keep truck demand humming
By Nora Eckert Wed, July 29, 2026 at 12:53 AM UTC
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By Nora Eckert
DETROIT, July 28 (Reuters) - Ford Motor on Tuesday raised its annual profit outlook for a second time this year, following rival GM's move last week, citing "resilient" customers who are buying the company's pricey pickup trucks.
Ford's shares were up 5.4% in after-hours trading after closing the regular session at $14.96, up 1.9%.
Ford CEO Jim Farley has for years said that the automaker needs to become more cost-efficient, especially in its main profit center — production of gasoline-powered trucks and SUVs.
Sherry House, Ford's finance chief, told reporters on Tuesday the automaker's second-quarter results indicated it was getting closer to that goal. “Our industrial system is getting fitter,” she said, adding that Ford's customers were resilient, a sign that demand from wealthier Americans was holding up in what is being called a K-shaped economy.
GM Chief Financial Officer Paul Jacobson said last week the company’s customers have “been very resilient.”
Ford raised its full-year forecast to $10 billion to $11 billion in earnings before interest and taxes. The automaker in April raised its guidance to $8.5 billion to $10.5 billion, up from a previous outlook of $8 billion to $10 billion to start the year.
Ford's second-quarter core profit rose nearly 20% to $2.5 billion, as strong U.S. demand helped offset tariff costs.
The automaker previously said it expected a net tariff cost of about $1 billion for the year, and House said on Tuesday that costs were forecast to be slightly lower than that, without providing a new figure.
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Ford faced high levies as it worked to find alternative aluminum suppliers after Novelis suffered several fires last year, in addition to other tariffs under U.S. President Donald Trump.
Novelis restarted production at its New York factory in June. The facility supplies aluminum to Ford’s top-selling F-150 pickup trucks. Still, Ford’s 2026 sales have taken a hit from disrupted production and the discontinuation of some models. Ford's U.S. vehicle sales were down 9.6% in the first half of the year.
The Dearborn, Michigan-based automaker's second-quarter revenue slipped 3.8% to $48.3 billion. It reported a second-quarter net loss of $1.3 billion due to a $3.6 billion charge related to a previously announced dissolution of a battery joint venture with SK On.
Adjusted earnings per share of 42 cents beat LSEG analyst forecasts of 35 cents per share.
Ford's stock has risen 14% so far this year, slightly outpacing GM's rise, as shares rode a wave of market interest in Ford's battery storage business this summer.
FORD'S ELECTRIC PICKUP PLANS
While Ford's U.S. electric vehicle sales fell 57.4% in the first half of the year, the automaker is still planning to begin production of a $30,000 electric pickup at a plant in Kentucky in 2027. Ford recorded losses of $919 million in its EV and software unit in the second quarter, and projected annual losses of about $4 billion in that segment.
Globally, it is leaning more on partners, including Renault and China’s Geely, to increase production of EVs.
Ford and Geely announced a joint venture this month to manufacture vehicles at Ford's Valencia, Spain, factory. Under the arrangement, Ford plans to continue production of the Kuga plug-in hybrid, as well as a new Bronco SUV, while Geely plans to make two electric SUVs at the plant starting in 2028. The companies will also jointly develop a multi-energy crossover model.
The automaker’s competitors have reported mixed results for the second quarter. General Motors last week reported earnings and revenue that topped analyst expectations and raised its full-year 2026 guidance for the second time this year. Meanwhile, Tesla missed analysts' second-quarter profit forecasts, and reported negative free cash flow, despite record vehicle deliveries.
(Reporting by Nora Eckert in Detroit; Additional reporting by Nathan Gomes in Bengaluru; Editing by Matthew Lewis, Sayantani Ghosh and Jamie Freed)
Source: “AOL Money”
