Ford Motor Company (NYSE: F) closed Thursday at $13.36, down 2.05% on the day, capping a challenging holiday-shortened week. The stock fell 5.4% from the prior Friday's close, while the broader S&P 500 (INDEXSP: .INX) gained 1.8% over the same period. U.S. equity markets were closed Friday in observance of Independence Day.
The automaker's shares came under pressure after reporting second-quarter U.S. sales of 549,200 vehicles, a 10.3% decline from 612,095 units in the same period last year. The drop was steeper than that of rivals General Motors (NYSE: GM), which posted a 4.2% sales decline, and Toyota Motor Corp. (NYSE: TM), which reported a 1.1% increase. Ford's performance was particularly weak in electrified vehicles, with EV sales plunging 40.7% and hybrid sales falling 20.0%.
F-150 Recovery in Focus
Sales of Ford's highly profitable F-Series pickup trucks, which include the F-150, fell 11.0% to 197,900 units in the quarter. The decline was attributed to fewer trucks available on dealer lots, as well as production disruptions related to model changeovers. Ford also cited a 69% drop in sales to rental car companies as a factor in the overall decline.
Despite the weak unit numbers, Ford emphasized improvements in retail market share. The company said its June retail share rose by 0.2 percentage points to 12.3%. Andrew Frick, who oversees Ford Blue and Model e, stated that the company will "lean into our strengths" and remains on track for its "second-half goals."
Profit Outlook and Investor Concerns
Investors are closely watching Ford's ability to shift focus from volume to higher-margin segments such as trucks, SUVs, commercial vehicles, and software. The second-quarter sales mix, however, showed softness in both F-Series and electrified vehicles, which are critical for second-half profitability. Ford maintained its full-year adjusted EBIT forecast of $8.5 billion to $10.5 billion, with Ford Pro expected to contribute $6.5 billion to $7.5 billion, Ford Blue $4.5 billion to $5.0 billion, and Model e projecting losses of $4.0 billion to $4.5 billion. CFO Sherry House reiterated that the "path to higher margins is clear."
Ford is scheduled to report second-quarter earnings on July 28 after market close. In the interim, market participants will monitor F-150 supply levels, Ford Pro's paid software subscriptions—which have surpassed 900,000—and whether the June retail share improvement can offset the unit sales decline that has already been priced into the stock.
The broader market context also weighed on Ford. General Motors' smaller sales drop and Toyota's sales growth highlighted the competitive pressures facing Ford. Toyota's electrified model sales surged 19.5%, underscoring the divergence in EV adoption among legacy automakers. Duncan Aldred, president of GM North America, noted that "customer demand is resilient," while Toyota's Andrew Gilleland touted the company's "multi-pathway approach."
As markets reopen Monday, the light corporate calendar leading up to Ford's earnings release means investor focus will remain on the company's ability to execute its second-half strategy and restore confidence in its F-150 franchise.
