Ford stock jumped more than 5% in after-hours trading on Tuesday even after the automaker reported a $1.3 billion second-quarter net loss, as investors focused on stronger underlying earnings and a raised outlook.
The company delivered adjusted earnings of 42 cents a share, ahead of the 36-cent consensus, while adjusted EBIT rose by $400 million from a year earlier to $2.5 billion.
Revenue of $48.3 billion also beat expectations despite falling 4%.
Ford closed regular trading at $14.96 before rising 5.4% after the results.
Ford stock: $1.3 billion loss is not the number investors traded
Ford’s statutory loss included $4.2 billion of pre-tax special charges.
The largest was a $3.6 billion, largely non-cash charge linked to the disposal of its BlueOval SK battery joint venture. Another $500 million related to electric-vehicle programmes cancelled in December.
Those charges confirm that Ford’s earlier EV strategy was expensive, but they do not mean ordinary vehicle production lost $1.3 billion during the quarter.
Excluding special items, the company generated $2.5 billion in adjusted EBIT and $2.1 billion in adjusted free cash flow.
Markets typically distinguish between costs that reveal ongoing operational weakness and accounting charges tied to decisions already taken.
Investors treated Ford’s EV write-downs as backward-looking while giving more weight to the business expected to produce future cash.
Trucks, hybrids and higher guidance drive the rally
Ford raised its 2026 adjusted EBIT forecast to between $10 billion and $11 billion from $8.5 billion to $10.5 billion.
It also increased adjusted free-cash-flow guidance to $6 billion-$7 billion from $5 billion-$6 billion, including an expected $500 million recovery from tariff reimbursements.
Ford Blue, which houses petrol-powered and hybrid vehicles, produced about $1.1 billion in EBIT, up from $611 million a year earlier.
Revenue edged higher to $26.1 billion even as wholesale volumes fell 8%, reflecting a stronger mix and pricing.
Ford Pro remained the largest earnings contributor, generating roughly $1.7 billion in EBIT despite aluminium-related production constraints.
Its result was lower than a year earlier, but management expects the supply disruption to become a second-half tailwind.
Jefferies analyst Philippe Houchois upgraded Ford to Buy before the report and lifted his target to $17.50 from $14.50.
He viewed the second quarter as the likely low point for volumes and expected production to normalise after the Novelis disruption.
The rally still faces an expensive EV and trade test
Ford’s EV problems have not disappeared.
Model e revenue fell 56% to $1 billion and the unit recorded a $919 million EBIT loss. Ford now expects Model e to lose about $4 billion in 2026, although that is better than its previous $4 billion-$4.5 billion range.
The forecast includes about $1 billion of additional investment in Ford’s Universal EV platform and energy-storage business.
Those projects could create new growth, but they also leave shareholders exposed to further spending before returns become visible.
Trade policy is another risk. RBC Capital analyst Tom Narayan had highlighted uncertainty surrounding the USMCA agreement before earnings.
Any disruption to North American supply chains or fresh tariffs could raise costs and erode Ford’s pricing gains.
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