Ford Motor (F) has matched rival General Motors by lifting its full-year earnings guidance, sending shares surging nearly 7% in after-hours trading Wednesday.
The Detroit automaker reported second-quarter adjusted earnings per share of $0.42, topping Wall Street’s consensus estimate of $0.36, according to Bloomberg data.
Ford posted Q2 automotive revenue of $44.89 billion, compared to analyst expectations of $44.72 billion, though overall revenue came in slightly below some estimates.
Adjusted EBIT reached $2.5 billion against an estimated $2.15 billion, producing an adjusted EBIT margin of 5.2%, up 0.9% compared to the same period a year ago.
Ford generated $4.3 billion of cash flow from operations during the quarter and $2.1 billion of adjusted free cash flow, ending the period with $18.6 billion in cash and equivalents.
The company now expects full-year adjusted EBIT of $10 billion to $11 billion, raised from prior guidance of $8.5 billion to $10.5 billion, with adjusted free cash flow guidance climbing to $6.0 billion to $7.0 billion from $5.0 billion to $6.0 billion.
Ford cited operational improvements, resilient vehicle pricing, and a strong sales mix of profitable products as key drivers behind both its quarterly performance and upgraded outlook.
The guidance raise mirrors a similar move made the prior week by General Motors (GM), which updated its own forecast with assumptions including pricing up around 0.5% and gross tariff costs of $2.5 billion to $3.5 billion.
Ford CEO Jim Farley framed the results as part of a broader transformation, saying, “We delivered another strong quarter and raised our full-year guidance, but the more important story is the growing evidence that Ford is becoming a more profitable, more disciplined and genuinely different company.”
The company also addressed recovery efforts tied to vehicle volume lost due to fires, expecting to recoup approximately $2.5 billion of the lost volume, the low end of a range that extended up to $3 billion.
Ford’s CFO noted during the earnings call that the recovery landed at the lower end of prior estimates due to the mix of vehicles expected to be produced this year.
Despite the strong operational results, Ford recorded a net loss for the quarter, driven by $4.2 billion in charges tied to its electric vehicle business, though the company noted that over $3.6 billion of that charge was non-cash.
Ahead of the earnings release, Jefferies upgraded both Ford and General Motors to buy from hold, with analyst Philippe Houchois stating that Ford is on track to start building momentum again, with Q2 set to mark a trough.
