Big Three automaker Ford (F) is on deck to report second quarter results, with investors focused on whether management follows rival General Motors (GM) in lifting its full-year outlook, and on how deep the softness in electric-vehicle demand runs across the lineup.
For the quarter, Ford is expected to report automotive revenue of $44.72 billion per Bloomberg consensus, with adjusted EPS of $0.36, on adjusted EBIT of $2.15 billion
That would translate to an adjusted EBIT margin of 4.3%. The bigger question hangs over guidance. After its Q1 report, Ford raised full-year adjusted EBIT guidance to $8.5 billion to $10.5 billion (prior guidance was $8.0 billion to $10.0 billion), matching GM’s guidance boost of $500 million.
Analysts and investors may expect Ford to raise its outlook again, just as GM did last week. GM said its updated guidance made key assumptions, including pricing up around 0.5%, EV losses improving by $1 billion to 1.5 billion, regulatory benefits of $500 million to $700 million, gross tariff costs of $2.5 billion to $3.5 billion, and commodity inflation (including DRAM) of $1.5 billion to $2 billion, among others. On spending, Ford is expected to model capital expenditures of $9.82 billion for the year, in line with Ford’s prior $9.5 billion to $10.5 billion guidance range.