Ford (F) Performed Well Despite 56% Plunge in EV Sales..."Pickup Trucks Saved It"

▲ Ford Motor (F), Electric Vehicles, Pickup Trucks/AI-generated image

Ford Motor (F) shares jumped more than 5% in after-hours trading after the company raised its annual profit outlook, similar to General Motors (GM).

According to economic media outlet MarketWatch on July 28 (local time), Ford announced better-than-expected Q2 earnings. Adjusted earnings per share were $0.42, surpassing market expectations of $0.36. Revenue decreased by 4% year-over-year to $48.3 billion but still exceeded market forecasts.

Ford raised its adjusted operating income forecast for 2026 from the previous $8.5 billion-$10.5 billion to $10 billion-$11 billion. General Motors had also previously raised its annual performance outlook. The judgment that consumer demand in the U.S. auto market is more robust than expected supported the confidence of both companies.

Ford's traditional internal combustion engine vehicles acted as a performance shield. Sales of popular pickup trucks and off-road vehicles partially offset the impact of declining EV sales. EV sales fell by 56%, and revenue from the commercial vehicle business unit, Ford Pro, also decreased by 5%.

Aluminum supply disruptions and reduced EV sales dragged down overall revenue. Ford CEO Jim Farley stated that the company is strengthening profitability and operational discipline based on strong pricing power. This indicates a strategy that prioritizes improving the quality of profits over expanding sales volume.

Ford's stock price has risen 13% since 2026, outperforming the S&P 500, which rose 9% over the same period. The upward revision of the annual profit outlook and the profitability of internal combustion engine vehicles alleviated market concerns about the sluggish EV business.

[Article Key Summary]

-Ford reported adjusted earnings per share of $0.42 in Q2, surpassing the market forecast of $0.36.

-The adjusted operating income forecast for 2026 was raised from the previous $8.5 billion-$10.5 billion to $10 billion-$11 billion.

-Despite a 56% decrease in EV sales, the profitability of pickup trucks and internal combustion engine vehicles defended the performance.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*