Ford Motor Company 10-Q Summary: Quarter Ended June 30, 2026
Business Context and Reporting Period
This report covers the second quarter and first half of 2026 for Ford Motor Company. The period was significantly impacted by the closing of the BlueOval SK (BOSK) Joint Venture Disposition Agreement in May 2026, resulting in the assumption of a $3.8 billion U.S. Department of Energy (DOE) loan and the recognition of substantial special item charges. The company continues to navigate supply chain disruptions, specifically regarding aluminum sourcing from Novelis, and is executing a strategic rationalization of its electric vehicle (EV) portfolio.
Key Financial Metrics
| Metric | Q2 2026 | Q2 2025 | H1 2026 | H1 2025 |
|---|---|---|---|---|
| Total Revenues | $48.3 billion | $50.2 billion | $91.5 billion | $90.8 billion |
| Net Income (Loss) | $(1.3) billion | $(36) million | $1.2 billion | $435 million |
| Diluted EPS | $(0.33) | $(0.01) | $0.30 | $0.11 |
| Operating Income | $638 million | $511 million | $2.97 billion | $830 million |
| Adjusted EBIT (Non-GAAP) | $2.5 billion | $2.1 billion | $6.0 billion | $3.2 billion |
| Operating Cash Flow | $4.3 billion | $6.3 billion | $5.7 billion | $10.0 billion |
| Company Cash (Excl. Ford Credit) | $22.3 billion | $28.7 billion | $22.3 billion | $28.7 billion |
| Total Debt (Excl. Ford Credit) | $23.6 billion | $21.9 billion | $23.6 billion | $21.9 billion |
Material Changes vs. Prior Period
- Special Items: The Q2 2026 net loss was driven by $4.2 billion in pre-tax special item charges. This includes a $3.6 billion charge related to the BOSK JV disposition and $481 million related to EV program cancellations (including the F-150 Lightning).
- Segment Performance:
- Ford Blue: EBIT improved to $1.1 billion (up $474 million YoY) driven by favorable mix, exchange rates, and lower regulatory compliance costs, despite an 8% decline in wholesales.
- Ford Model e: EBIT loss narrowed to $919 million (improvement of $410 million YoY) due to lower losses on Gen-1 products, though wholesales dropped 53% following the discontinuation of the F-150 Lightning.
- Ford Pro: EBIT declined to $1.7 billion (down $600 million YoY) primarily due to lower volume and higher commodity costs associated with aluminum supply disruptions.
- Ford Credit: Earnings Before Taxes (EBT) increased to $757 million, supported by improved financing margins.
- Liquidity: Company cash excluding Ford Credit decreased to $22.3 billion from $28.7 billion at year-end 2025, largely due to the assumption of the DOE loan and capital spending.
Guidance, Outlook, and Risks
- 2026 Guidance: Ford expects full-year Adjusted EBIT of $10.0–$11.0 billion and Adjusted Free Cash Flow of $6.0–$7.0 billion. Segment targets include Ford Pro EBIT of $7.0–$7.5 billion, Ford Blue EBIT of $5.0–$5.5 billion, and a Ford Model e EBIT loss of approximately $4.0 billion.
- Key Assumptions: Outlook assumes a U.S. SAAR of 16.0–16.5 million, commodity headwinds of just above $2.0 billion (excluding Novelis), and a $1.0 billion improvement from Novelis recovery.
- Risks and Contingencies:
- Supply Chain: Ongoing disruptions from Novelis aluminum fires may impact production and costs in the second half of 2026.
- EV Market: Continued rationalization of EV capacity and potential for additional charges related to program cancellations.
- Legal: Pending litigation includes the Versata Software trade secret case (Federal Circuit reinstated $82 million award) and Brazilian tax matters with potential collateral requirements exceeding $1 billion.
Investor Verification Checklist
- Verify the cash impact and repayment terms of the assumed $3.8 billion DOE loan from BOSK.
- Monitor the timeline and cost implications of the Novelis aluminum supply recovery.
- Review the specific details of the $481 million EV program cancellation charges and potential for additional expenses up to $2 billion.
- Assess the status of the Versata Software litigation appeal and potential liability exposure.
- Track Ford Model e's path to profitability given the significant reduction in EV production volume.