{"id":562358,"date":"2026-07-27T19:40:19","date_gmt":"2026-07-27T19:40:19","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/562358\/"},"modified":"2026-07-27T19:40:19","modified_gmt":"2026-07-27T19:40:19","slug":"fords-guidance-is-all-that-matters-in-light-of-gms-results-q2-preview","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/562358\/","title":{"rendered":"Ford’s guidance is all that matters in light of GM’s results: Q2 preview"},"content":{"rendered":"\n

Big Three automaker Ford (F<\/a>) is on deck to report second quarter results, with investors focused on whether management follows rival General Motors (GM<\/a>) in lifting its full-year outlook and how deep the softness in electric vehicle demand runs across the lineup. <\/p>\n

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%. <\/p>\n

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.\u00a0 <\/p>\n

Analysts and investors may expect Ford to raise its outlook again, just as GM did last week<\/a>. 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. <\/p>\n

On spending, Ford is expected to model capital expenditures of $9.82 billion for the year, in line with the company’s prior guidance range of $9.5 billion to $10.5 billion. Ford had also warned that its 2026 first-half EBIT would be lower than the second half, as temporary aluminum sourcing for its F-Series pickups weighs on costs before production normalizes late in the year. <\/p>\n

In terms of electrification, Ford has gone all in on a new EV platform<\/a> built around smaller, cheaper vehicles, meant to be profitable early in the product cycle, a pivot away from first-gen products like the Mustang Mach-E and the now-canceled F-150 Lightning. But near-term EV demand has dropped sharply due to the loss of federal tax credits. <\/p>\n

\"A<\/a> A depiction of Ford’s UEV platform, with the first product being a pickup truck with an aerodynamic profile. \u00b7 Ford <\/p>\n

Earlier in the month, Ford reported a 10.3% drop<\/a> in second quarter US sales to 549,200 vehicles as electric vehicle demand tumbled, F-Series and SUV volumes slipped, and the automaker worked through the discontinuation of two models. <\/p>\n

The quarter was down across most of the lineup, and first-half sales fell 9.6% to just over 1 million vehicles. Ford noted that, excluding the Escape and Lincoln Corsair phase-outs and a 69% cut in daily rental sales, Q2 sales would have risen an estimated 0.5%. <\/p>\n

Despite this, Ford said its estimated June retail market share rose 0.2 percentage points to 12.3%. <\/p>\n

If Ford matches GM’s move and raises guidance, investors may look past the volume declines. Maintaining current guidance may indicate that the F-Series franchise’s health hasn’t fully recovered or that cost control with regard to inflation and warranty expense could be better. <\/p>\n

Pras Subramanian is Lead Auto Reporter for Yahoo Finance. You can follow him on X<\/a> and on Instagram<\/a>. <\/p>\n

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