Ford Raises Earnings Outlook on Strong Sales of Profit-Rich SUVs

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessFord Raises Outlook on Strong Demand for Profit-Rich SUVsFord Motor Co. posted earnings ahead of Wall Street estimates and raised its outlook for the second time this year on higher prices and strong sales of high-margin sport-utility vehicles.Author of the article:Last updated 1 minute ago You can save this article by registering for free here. Or sign-in if you have an account.A 2025 Ford Bronco Badlands SUV. Photo by Graham Hughes /Photographer: Graham Hughes/Bloo(Bloomberg) — Ford Motor Co. posted earnings ahead of Wall Street estimates and raised its outlook for the second time this year on higher prices and strong sales of high-margin sport-utility vehicles.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountAdjusted earnings were 42 cents a share, topping the 36-cent average of analyst estimates compiled by Bloomberg. Ford now expects to earn as much as $11 billion before interest and taxes this year, up from its prior forecast for $8.5 billion to $10.5 billion, the company said in a statement on Tuesday. Analysts had expected about $9.5 billion on average.The rosier outlook shows how Ford is cashing in on resilient demand for SUVs and pickups, echoing a similar move by rival General Motors Co. last week. Those models generate critical profits for Ford as the company scales back its loss-making electric vehicle operations and digests higher costs from tariffs and commodities.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againIt’s also a sign of momentum as the company invests $2 billion into a new energy storage business that could take years to generate returns.Chief Executive Officer Jim Farley said in a statement that the results reflect “growing evidence that Ford is becoming a more profitable, more disciplined and genuinely different company.”Ford’s shares rose 7.2% in after-hours trading in New York. The stock gained 14% this year through Tuesday’s close, better than the broader S&P 500 Index.The automaker softened the blow of a 10% drop in US vehicle sales in the second quarter by delivering large numbers of profitable Bronco and Explorer SUVs, particularly high-margin models outfitted with expensive off-road performance packages. That helped offset the profit hit of having fewer of its top-selling F-Series pickups on hand due to fires last year at the Novelis Inc. aluminum mill in New York state that provides material for the truck’s body panels. The mill resumed operations in the second quarter and Ford expects to recoup some lost production in the back half of the year.The company now expects to recover about $2.5 billion worth of F-Series production lost to the fires, the low end of its previous forecast for as much as $3 billion, according to an investor presentation.Chief Financial Officer Sherry House said much of the more than $1 billion in tariff costs Ford expects this year comes from importing aluminum because of the Novelis fires.“We have a very sizable tariff cost due to the Novelis supply disruption and our need to be able to secure aluminum from outside the United States,” House said in a call with reporters Tuesday. “Our tariff costs now are largely focused on aluminum and steel and incoming vehicles.”Ford also has benefited from its foray into energy storage, which sent its shares soaring the most in 17 years in May as investors tied the old economy automaker to the artificial intelligence spending boom. “We have many potential customers that are reaching out to us” from sectors including power generation and data centers, House said. Profits from the new energy business won’t show up in financial results until 2028, she said.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.The move into the battery business came from Ford’s setback in attempting to sell electric vehicles, as it repurposes an EV-battery plant in Kentucky to build batteries for energy storage.That facility was part of Ford’s now-defunct joint venture with South Korea’s SK On to build EV batteries. Ford booked a $3.6 billion largely non-cash charge in the second quarter related to the previously disclosed wind-down.Ford’s EV sales plunged 41% in the second quarter, after discontinuing its F-150 Lightning plug-in pickup as part of $19.5 billion in charges on underperforming EV assets. Ford is overhauling its EV strategy to focus on less expensive models, starting with a $30,000 small electric pickup truck due to launch later next year.Farley has promised several affordable electric models to be built on what the company calls its universal electric vehicle platform, which are to be produced at a former SUV factory in Kentucky. He has said those models are critical to fending off competition from Chinese automakers that are gaining ground worldwide with cheap, high-tech EVs, but are currently kept out of the US market by formidable trade barriers. Farley has praised Chinese automakers’ cost and technological advantages, saying they represent an existential threat to western car companies. Last week, Ford announced a joint venture with China’s Geely Automobile Holdings Ltd. to co-develop electric SUVs for Europe and to share production at a Ford factory in Spain. Ford also has a licensing agreement with Chinese battery giant Contemporary Amperex Technology Co. Ltd., to build batteries for both EVs and energy storage.(Updates postmarket share move in the sixth paragraph.)Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.