By Nora Eckert
DETROIT, July 28 (Reuters) - Ford Motor on Tuesday lifted its annual guidance for a second time this year, to $10 billion to $11 billion in earnings before interest and taxes, citing strong pricing and improvements in its core business.
The automaker in April raised its guidance to $8.5 billion to $10.5 billion in projected earnings before interest and taxes for the year, from a previous $8 billion to $10 billion to start the year.
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, said the automaker's second-quarter results indicate it is getting closer to that goal.
“Our industrial system is getting fitter,” said House, adding that the quarterly performance was boosted by "quite resilient" customers.
Ford's second-quarter core profit rose nearly 20% to $2.5 billion, as strong U.S. demand helped offset tariff costs and broader economic uncertainty.
TARIFF COSTS OFFSET BY DEMAND
The automaker previously said that it faces a net tariff cost of about $1 billion for the year, and House said on Tuesday that costs were expected to be slightly improved from that earlier projection, without providing a new figure. Ford faced high levies as it worked to source alternative aluminum sources after major supplier 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 — and Ford's U.S. vehicle sales were down 9.6% in the first half of the year.
Adjusted earnings per share of 42 cents beat LSEG analyst forecasts of 35 cents per share. The automaker posted revenue of $48.3 billion.
The Dearborn, Michigan, automaker reported a second-quarter net loss of $1.3 billion, as a result of charges from a previously announced dissolution of a joint venture with SK On.
FORD'S ELECTRIC PICKUP PLANS
While EV sales in the U.S. fell 57.4% for Ford in the first half of the year, the automaker is still planning to begin production of its $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 earlier 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 it 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; Editing by Matthew Lewis)
