Ford lifts 2026 forecast despite $1.3bn loss

Ford reported a $1.3 billion second-quarter loss on Tuesday after costs tied to its electric vehicle retreat, but raised its 2026 profit forecast on stronger vehicle pricing.

The Michigan automaker said the loss was driven by $3.6 billion in costs connected to winding down an electric battery joint venture. Revenue fell 3.8 percent to $48.3 billion, partly because wholesale auto sales declined 12.3 percent.

Ford now expects adjusted operating earnings of $10 billion to $11 billion in 2026, up from its previous range of $8.5 billion to $10 billion.

Chief Financial Officer Sherry House said Ford's core consumer had remained resilient despite inflation and interest rates. The company now sees industrywide pricing rising 0.5 percent after previously expecting pricing to be roughly flat.

Ford said its outlook had also improved because of warranty costs and expected recovery from the 2025 outage at Novelis, an aluminium plant in New York state that had two fires and disrupted Ford's supplies. House said materials from the plant would be completely restored in September.

Ford shares rose 1.0 percent in after-hours trading.