Earlier today, we published Ford’s second-quarter 2026 financial results. As I reflect on our performance, what stands out to me most is the momentum and discipline across our global team.

The big picture story this quarter is simple: Our Ford+ plan is delivering, our industrial execution continues to strengthen, and our core underlying business is more resilient.

For the quarter, Ford generated $48.3 billion in revenue and $2.5 billion in adjusted EBIT — a 17% increase year-over-year. We also generated $2.1 billion in adjusted free cash flow, bringing our total liquidity to over $43 billion.

Because of this operating strength, we raised our full-year adjusted EBIT outlook by $1 billion at the midpoint, now expecting between $10 billion and $11 billion for 2026.

If you’re following the news today, here are the four key takeaways you need to know about our progress and where we’re headed next:

1. We delivered strong results — and our net loss reflects a planned future investment.

Because of our strong operational results in the first half of the year, we increased our full-year profit outlook by $1 billion.

You will also see headlines noting that we reported a GAAP net loss of $1.3 billion for Q2. It’s important to understand the context behind that number: most of it was driven by a scheduled, one-time $3.6 billion special item charge resulting from the disposition of our BlueOval SK (BOSK) joint venture in May and charges tied to the EV program cancellations we announced in December 2025..

This was a deliberate step. Crucially, over $3 billion of this charge is non-cash. By restructuring this joint venture, we cleared the runway to repurpose those manufacturing assets for Ford Energy — our high-growth battery energy storage business.

This charge was fully expected, previously disclosed, and does not reflect the day-to-day health of our core business, which is healthy, growing, and fundamentally improving.

2. Quality and cost discipline are transforming our core automotive business.

A stronger automotive core begins with getting the fundamentals right: quality, cost, and capitalizing on the iconic vehicles our customers love.

• No. 1 in Quality: Ford was ranked the No. 1 mainstream brand in the J.D. Power 2026 Initial Quality Study — a historic milestone that reflects our company-wide obsession with getting quality right at launch. This progress is central to our drive to take $1 billion in warranty and material costs out of our business this year.

• Ford Blue: Delivered $1.1 billion in EBIT — up 72% year-over-year — powered by strong pricing and product mix. F-Series expanded its lead as America’s top-selling truck, the Bronco family achieved record Q2 sales, and Maverick Hybrid set a record as the best-selling hybrid pickup in the U.S.

• Ford Pro: Generated $1.7 billion in profit, demonstrating the resilience of our commercial business despite temporary aluminum supply chain disruptions. Customer demand remains high, with 2027 model year contracting running a full month ahead of last year’s pace.

• Model e: Marked its third consecutive quarter of year-over-year profit improvement, narrowing its EBIT loss as Gen-1 structural costs continue to come down toward our target of a 40% full-year profitability improvement in our Gen-1 portfolio.

3. Software and physical services are creating a high-margin recurring flywheel.

Ford+ isn't just about selling a vehicle once; it's about building a lifelong relationship with the customer through digital and physical ecosystem services.

In Q2, total paid customer subscriptions grew 50% year-over-year to 1.6 million, including over 900,000 Ford Pro Intelligence subscriptions. These are paid, active software subscriptions — not free bundled trials — proving that retail and commercial customers see genuine, day-to-day value in our software solutions.

As this high-margin recurring layer scales, it creates a powerful margin flywheel across all three of our vehicle segments.

4. We are investing in high margin adjacent businesses such as Ford Energy.

We are deploying capital into high-return adjacencies where Ford holds a clear competitive advantage.

Following a milestone commercial agreement with EDF Power Solutions, Ford Energy is on track to achieve 20 gigawatt-hours of annual battery energy storage capacity by late 2027. This transforms our manufacturing footprints into active energy assets and opens up a lucrative, high-margin market in grid energy infrastructure.

Looking Ahead

Our results in the second quarter prove that when we execute with discipline, Ford wins. We possess a strong balance sheet, $22.3 billion in cash, and a clear capital allocation framework that allows us to fund high-return growth while returning value to shareholders — including a 15-cent regular dividend announced today.

We have plenty of work ahead, but our strategy is clear, our team is aligned, and we are moving steadily toward our target of an 8% EBIT margin by 2029.

Sherry House is Chief Financial Officer at Ford Motor Company.