Ford Motor Company (NYSE:F) shares gained 4.75% in premarket trading Wednesday, reaching $15.67, after the automaker raised its full-year profit guidance. The stock closed Tuesday at $14.96, up 1.91%.
Guidance Boost
Ford increased its adjusted operating profit midpoint by $1 billion to $10.5 billion, with the new 2026 adjusted EBIT range set at $10 billion to $11 billion, up from $8.5 billion to $10.5 billion. The midpoint rose 10.5%.
Basic midpoint calculations indicate that Ford Blue and Ford Pro accounted for $750 million of the $1 billion increase, or 75%. Ford Blue's midpoint rose $500 million to $5.25 billion, while Ford Pro's increased $250 million to $7.25 billion. The Model e unit's expected loss narrowed by $250 million to -$4.0 billion, contributing the remaining 25%.
Second-Quarter Performance
Wholesale volume fell 12%, but adjusted operating profit rose 19%, driven by strong pricing, higher trim levels, and disciplined cost management. Adjusted earnings per share came in at $0.42, exceeding the consensus estimate of $0.35. The company reported a net loss of $1.3 billion, largely due to a $3.6 billion non-cash charge related to the exit from the BlueOval SK battery partnership.
Ford Blue demonstrated strong operating leverage, with EBIT rising $474 million on just $300 million in revenue growth. Its margin improved to 4.4% from 2.6%. CEO Jim Farley highlighted that trucks, off-road vehicles, and hybrids are "commanding real pricing power," noting that nearly a quarter of U.S. sales came from off-road variants.
Ford Pro remained the top industrial profit driver, generating $1.72 billion in earnings despite a $600 million decline. Production of high-margin trucks was constrained by aluminum shortages linked to supplier Novelis.
Model e's loss narrowed by $410 million to $919 million, but revenue dropped 56% and its EBIT margin worsened to -89.6%. Ford still expects about $4 billion in losses from the unit this year, roughly 38% of the company's projected EBIT at the midpoint. The company plans to invest an additional $1 billion in its new EV platform and Ford Energy.
Market Context and Risks
General Motors (NYSE:GM) last week raised its 2026 adjusted EBIT forecast to $14 billion-$16 billion, with second-quarter adjusted EBIT of $3.9 billion, supported by strong truck and SUV pricing.
Ford shares rose about 1% in the week ending July 24 and added 4.1% over Monday and Tuesday. Investors will watch July sales data and F-Series production. Ford expects about $1 billion in additional EBIT from Novelis compared with last year, with much of that in the second half. Restoring the aluminum supply is a key execution challenge.
Risks include a U.S. industry pricing increase of roughly 0.5%, a 9.6% drop in first-half U.S. sales, persistent losses at Model e, reduced truck demand, higher tariffs, or a slower aluminum recovery, any of which could push earnings toward the lower end of the range.
