Ford Motor Company reported a decline in revenue for the second quarter of 2026, primarily driven by lower sales in the U.S. market, but the automaker raised its full-year profit forecast and maintained a positive outlook on consumer demand for its higher-margin trucks and SUVs.

On Tuesday, the Dearborn, Michigan-based manufacturer announced a revised earnings before interest and taxes (EBIT) guidance of $10 billion to $11 billion for the full year, up from a previous range of $8.5 billion to $10.5 billion. This announcement came despite first-half sales declining nearly 10% compared to the same period in 2025. Ford attributed the sales drop to production disruptions caused by a supplier factory fire and the strategic discontinuation of some high-volume models, such as the Escape SUV.

The company posted a second-quarter net loss of $1.33 billion, reflecting costs linked to the termination of its joint electric-vehicle battery venture with South Korea’s SK Group and the cancellation of several EV projects. Adjusted earnings per share came in at 42 cents, surpassing analysts’ expectations of 36 cents, according to data compiled by FactSet.

Ford Chief Executive Jim Farley emphasized the company’s disciplined investment approach, focusing only on areas where it holds a competitive edge and can generate sustainable returns. “Every dollar must earn durable returns and drive profitable growth,” Farley told analysts during the earnings call.

Sherry House, Ford’s Chief Financial Officer, noted that demand remains robust for larger trucks and off-road SUVs, which accounted for nearly 25% of U.S. sales in the second quarter. She highlighted the resilience of Ford’s customer base amid inflationary pressures and rising interest rates, saying, “Our Ford consumer has been very resilient.”

Despite the overall decline in vehicle sales, Ford’s revenue remained slightly ahead compared to the first half of 2025. Market trends indicate a sustained preference for pricey pickup trucks and sport-utility vehicles, with average transaction prices hovering around $50,000. However, the shrinking pool of new-car buyers as many consumers turn to used vehicles or continue driving older models has tempered volume growth.

Looking ahead, Ford is preparing to introduce a more affordable all-electric pickup truck in 2027, with a starting price expected around $30,000. This launch forms part of the company’s broader strategy to deliver lower-cost electric vehicles built on its new Universal EV Platform. House emphasized the importance of balancing customer demand with affordability as the company expands its electric portfolio.

Industry data from Kelley Blue Book indicates a rising interest in more budget-friendly vehicles, with sales of subcompact SUVs increasing over 23% year-over-year last month, while full-size pickup sales saw a modest 2.5% gain. Ford’s continued focus on attracting buyers within these segments reflects these market shifts.

Despite geopolitical uncertainties, including the ongoing conflict involving Iran, Ford reported no significant impact on U.S. vehicle sales related to fuel prices or supply concerns at this time.

Analysts from Jefferies forecast that second-quarter sales would mark a low point for Ford due to the Novelis aluminum supplier fire. The firm remains optimistic about Ford’s capacity to recover lost volumes and flagged the recent partnership with Chinese automaker Geely to enhance production capacity at a Spanish plant as a positive factor.

Additionally, Ford’s shares rose 7% in after-hours trading following the earnings release. The company has recently created Ford Energy, a new division focused on repurposing EV battery production for stationary energy storage systems targeting data centers and power utilities, signaling diversification beyond traditional automotive manufacturing.

Addressing reports of a Pentagon contract to build prototype tactical vehicles, Farley reaffirmed Ford’s commitment to supporting national defense efforts. “Ford always answers the call to duty,” he stated, aligning with the Department of Defense’s increased engagement with U.S. automakers to bolster weapons production capabilities.