Ford Q2 Earnings Highlights: Revenue Beat, EPS Beat, EV Revenue Up 39% Year-Over-Year, Production Updates And More

Big Three automaker Ford Motor F reported second-quarter financial results after market close Thursday. Here are the key highlights.

What Happened: Ford reported second-quarter revenue of $45.0 billion, which was up 12% year-over-year. The revenue came in ahead of a Street consensus estimate of $40.38 billion, according to data from Benzinga Pro.

The company reported earnings per share of 72 cents in the second quarter, beating a Street consensus estimate of 55 cents per share.

Revenue by operating segment was:

• Ford Blue: $25.0 billion, +5% year-over-year
• Ford Model E: $1.8 billion, +39% year-over-year
• Ford Pro: $15.6 billion, +22% year-over-year.

EBIT by segment was:

• Ford Blue: $2.3 billion
• Ford Model E: -$1.08 billion
• Ford Pro: $2.39 billion

The company said the Ford Model E business is scaling and seeing competitive pricing. Ford reported 34,000 units for the segment in the second quarter, which was up 44% year-over-year. Ford sees its Model E unit having a run-rate of 600,000 units in 2024.

“The shift to powerful digital experiences and breakthrough EVs is underway and going to be volatile, so being able to guide customers through and adapt to the pace of adoption are big advantages for us,” Ford CEO Jim Farley said.

Ford was the bestselling brand in the second quarter, with unit net sales up over 11% year-over-year, the company added.

“EV customers are brand loyal and we’re winning lots of them with our high-volume, first-generation products; we’re making smart investments in capabilities and capacity around the world; and, while others are trying to catch up, we have clean-sheet, next-generation products in advanced development that will blow people away,” Farley added.

Related Link: Trading Strategies For Ford Stock After Q2 Earnings

What’s Next: Ford sees electric vehicles scaling to a two million run rate in the future, and the company said it will balance growth and profitability for the segment.

The company raised its full-year adjusted EBIT to come in a range of $11 billion to $12 billion. Full-year adjusted free cash flow guidance was raised to a range of $6.5 billion to $7 billion.

For the full fiscal year, Ford sees its Model E segment hitting an EBIT loss of $4.5 billion.

The company is expected to report third quarter financial results on Oct. 26, 2023.

F Price Action: Ford shares are up 2% to $14.02 in after-hours trading Thursday, versus a 52-week range of $10.90 to $16.68.

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Photo: Ford