Ford raises and narrows full-year EBIT guidance to $10-$11B
Ford delivered strong Q2 2026 results, raising FY2026 EBIT guidance by $1B at the midpoint to $10-11B, driven by strong pricing and mix. The company highlighted progress in its Ford Plus plan across core auto, software/services, and adjacent energy businesses. Q2 revenue was $48.3B, adjusted EBIT $2.5B, and adjusted free cash flow $2.1B.
Buzzberg readFord raises and narrows full-year EBIT guidance to $10-$11BFord delivered strong Q2 2026 results, raising FY2026 EBIT guidance by $1B at the midpoint to $10-11B, driven by strong pricing and mix. The company highlighted progress in its Ford Plus plan across core auto, software/services, and adjacent energy businesses. Q2 revenue was $48.3B, adjusted EBIT $2.5B, and adjusted free cash flow $2.1B.Read full analysisCollapse analysis
Ford delivered strong Q2 2026 results, raising FY2026 EBIT guidance by $1B at the midpoint to $10-11B, driven by strong pricing and mix. The company highlighted progress in its Ford Plus plan across core auto, software/services, and adjacent energy businesses. Q2 revenue was $48.3B, adjusted EBIT $2.5B, and adjusted free cash flow $2.1B.
Raised FY2026 EBIT guidance to $10-11B and FCF to $6-7B.
Unveiled battery energy storage business (Ford Energy) targeting 20GWh capacity by 2027.
Noted 2027 model year customer contracting for Ford Pro is ahead of schedule, indicating strong demand.
Revenue$48.296B
+12% QoQ
EPS$0.42
-34% QoQ
Gross margin12.59%
reported
Op margin1.32%
reported
What changed this quarter
01
Guidance
Ford raises and narrows full-year EBIT guidance to $10-$11B
Guidance tone
02
Energy
Ford Energy targeting 20 GWh annual capacity by late next year
Q2 revenue was $48.3B, adjusted EBIT $2.5B, and adjusted free cash flow $2.1B.
03
Software
Ford Pro software subscriptions up over 20% year-over-year
Raised FY2026 EBIT guidance to $10-11B and FCF to $6-7B.
04
Quality
Ford ranked #1 in J.D. Power initial quality study
Unveiled battery energy storage business (Ford Energy) targeting 20GWh capacity by 2027.
Demand & capex
Demand
Bookings & conversion
Ford raised FY2026 EBIT guidance by $1B at the midpoint, indicating improving profitability and strong pricing/mix.
Capex
Investment and capacity
Ford is maintaining capital expenditures of $9.5 to $10.5 billion, investing in higher-return growth opportunities such as the UEV platform, Ford Energy, and the Oakville Super Duty expansion. The company expects about $1 billion in incremental investment for UEV and Ford Energy, mostly in the second half of 2026.
Tone · Confident
Management emphasizes strong execution, quality improvements, and strategic momentum, while raising full-year EBIT guidance.
Supply-chain alpha
A1
Ford has a 20 GWh target for Ford Energy by late 2027 and is already producing prototype cells in Marshall, Michigan, suggesting rapid scaling.
“By late next year, we expect to reach 20 gigawatt hours of annual capacity for Ford Energy”
Ford is expanding Super Duty capacity with a new facility in Oakville, targeting up to 100,000 additional units, addressing pent-up demand.
“The Oakville expansion I referred to earlier is on track to launch in the fourth quarter of this year, adding up to 100,000 units of additional Super Duty capacity.”
2027 model year customer contracting for Ford Pro is about a month ahead of last year, indicating strong early demand for commercial vehicles.
“although early, 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.”
… across the U.S. Customer deliveries will begin next year. The first UEV product will compete in the affordable heart of the U.S. EV market where we'll offer customers a wholly new proposition that we can't find in the market today. It starts around $30,000. It has more cabin room than the Toyota RAV4, plus it has a pickup truck bed. It has bidirectional charging capability, incredibly fun to drive, and personalized technology in the experience. In fact, we just announced Apple last week, as you know, will be the embedded map provider for every UEV platform vehicle. And we are very excited to show you much more about our move to be among the leaders in the EV space. In Europe, as you saw last week, we announced our agreement with Geely, which will bring speed and capital efficiency to our European operations. The second area of our Ford Plus plan is software and physical services, including our parts business. These businesses have significant room to grow, are central to our 8% margin target by 2029, and the idea is really simple. Combine our digital services, our large dealer network, our physical services into one seamless experience, building a flywheel across software, …
… It starts around $30,000. It has more cabin room than the Toyota RAV4, plus it has a pickup truck bed. It has bidirectional charging capability, incredibly fun to drive, and personalized technology in the experience. In fact, we just announced Apple last week, as you know, will be the embedded map provider for every UEV platform vehicle. And we are very excited to show you much more about our move to be among the leaders in the EV space. In Europe, as you saw last week, we announced our agreement with Geely, which will bring speed and capital efficiency to our European operations. The second area of our Ford Plus plan is software and physical services, including our parts business. These businesses have significant room to grow, are central to our 8% margin target by 2029, and the idea is really simple. Combine our digital services, our large dealer network, our physical services into one seamless experience, building a flywheel across software, vehicles, and parts. On software, we're turning a one-time sale into a lifetime relationship, as we said. We now have over 14 million connected vehicles. That's an enormous base to grow from. Our goal is to activate that base, driving …
Great. Well, congrats on the really strong results this quarter. I do want to start on the energy storage side of the business and just hoping to get more of an update in terms of the conversations that you're having on that front obviously we saw the EDF agreement so you know utilities do seem like the obvious customer here given some of your long-standing relationships there with Ford Pro but I am just curious to what extent you're having conversations directly with hyperscalers you know that might want to lock up some of your domestic battery capacity. So it's really a two-part question. One, are you engaging with the hyperscalers about direct offtake? And two, what inning would you say…
Sure. Just to take a step back, you know, what we hear from our customers is we're in the center of the market. A 20-foot containerized LFP prismatic solution, DC block with a two and a four hour capacity. Thank you for joining us. The kind of conversations we're having, we're in the real depth now. The demand signal is very strong for us. And given there's about a six month lag between kind of when you start, when the projects have to land, we're kind of a little bit, we're like in the first or second inning to tell you everything about the customer for 28 capacity. But it looks really good. We're in line with our forecast inside the company, which I won't go over, but we're seeing a broad group of customers. They are not just utility providers. In fact, every day that goes by, we see more Thank you for joining us. Early discussions, then we go to the legal and contracting phase, and then we have the final contract at the end. So I would say we're kind of in the third inning of selling out the 2028 capacity of 20 gigawatt hours. I would say, just to emphasize in my speech, that we have the capacity to upgrade a Kentucky One, and that we are building prototype cells already in Marshall, Michigan. So this is not a theoretical business. We are building cells already. And obviously, Kentucky One is building out a little bit later than Marshall. Hope that gives you some more texture.
… as we invest in affordable, versatile EVs. The Louisville plant changeover for the new UEV platform is well underway at Ford. You may have seen prototypes now of our first vehicles off the UEV platform testing on roads across the U.S. Customer deliveries will begin next year. The first UEV product will compete in the affordable heart of the U.S. EV market where we'll offer customers a wholly new proposition that we can't find in the market today. It starts around $30,000. It has more cabin room than the Toyota RAV4, plus it has a pickup truck bed. It has bidirectional charging capability, incredibly fun to drive, and personalized technology in the experience. In fact, we just announced Apple last week, as you know, will be the embedded map provider for every UEV platform vehicle. And we are very excited to show you much more about our move to be among the leaders in the EV space. In Europe, as you saw last week, we announced our agreement with Geely, which will bring speed and capital efficiency to our European operations. The second area of our Ford Plus plan is software and physical services, including our parts business. These businesses have significant room to grow, …
Thank you, Layla, and welcome to Ford Motor Company's second quarter 2026 earnings call. I'm Maria Richard-Own, Ford's new chief investor relations officer. I most recently came from Lockheed Martin, where I was treasurer and head of investor relations. I joined Ford because the opportunity ahead is tremendous. Few companies today are navigating a transformation of this scale and this consequence. My focus will be straightforward, clear, consistent communication with all of you and ensuring the market understands how our differentiated strategy translates into profitable growth, capital discipline, and shareholder value. With that, let's jump in. With me today are Jim Farley, President and CEO, and Sherry House, CFO. Joining us for Q&A is Andrew Frick, president of Ford Blue and Model E, Alicia Bowler-Davis, president of Ford Pro, Kumar Galhotra, chief operating officer, and Kathy O'Callaghan, CEO of Ford Credit. Jim will give a high-level overview of the business, and Sherry will provide added texture on the financials and guidance. We will be referencing non-GAAP measures today. are on an adjusted basis. Upcoming IR engagements include Mike Aragon, President of Integrated …
… We play only where we have real competitive advantage or we can build one. And we're ruthless about where we put our money. Every dollar must earn durable returns and drive profitable growth. So let's talk through each of these areas. On core automotive operations, Our execution is underpinned by a fundamentally stronger industrial system. For more than three years, we've been relentless about building top quality and that work is showing up. In our home market, Ford finished number one among all mainstream brands, J.D. Power's 2026 initial quality study. We see this win as a first down payment on a much more consequential virtuous circle. Going from initial quality to long-term durability, lowering our warranty costs even further, fewer recalls, stronger customer loyalty, more pricing power, and for our conquest and growth, improved resale value. Ford's quality renaissance goes hand-in-hand with our equally intense drive to improve our cost structure. We have significantly reduced our warranty and material costs since 2024, and we continue to optimize costs as we enter a heavy new product launch period over the next three years. Turning to the products themselves, we're …
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