In the second quarter of this year, Ford posted revenue of $40.2 billion on a 35% increase in wholesale shipments together with favorable pricing and vehicle mix.

Company net income was $667 million, a margin of 1.7%, which included a mark-to-market loss on Ford’s stake in Rivian. Adjusted earnings before interest and taxes was $3.7 billion, an adjusted EBIT margin of 9.3%.

Operating cash flow was $2.9 billion and adjusted free cash flow was $3.6 billion, with solid automotive EBIT of $3.3 billion. Ford ended the quarter with $29 billion in cash, $45 billion in total liquidity and the persistent financial strength and flexibility to fund Ford+ priorities.

Based on the company’s financial strength and flexibility, Ford’s board of directors today declared a third-quarter regular dividend of 15 cents per share on outstanding stock. The dividend is payable on Sept. 1 to shareholders of record at the close of business on Aug. 11.

Last week, the company announced a series of agreements that together assure it has the battery and raw material sourcing required to reach its targeted annual run rate of producing 600,000 EVs by late 2023, and 70% of what will be needed to ramp to a run rate of more than
two million units by the end of 2026.

Reaching the ’26 target would represent compound annual EV growth exceeding 90% – more than twice the forecasted growth rate for the global industry.

“We’re moving with purpose and speed into the most promising period for growth in Ford’s history – to innovate and deliver great products and connected services, raise quality and lower costs,” said CEO Jim Farley. “We’re giving customers great experiences and value, improving our profitability and making Ford the next-generation transportation leader.”

EBIT and EBIT margin in North America improved with market factors, which were partially offset by the effects of inflation on commodity costs and overall expenses. Ford’s order bank for products in the region remains robust, with nearly all 2022-model year vehicles sold out –
including the F-150 Lightning EV, shipments of which started in May.

Outlook
CFO John Lawler said that Ford’s outlook for full-year 2022 financial performance has not changed: adjusted EBIT of $11.5 billion to $12.5 billion, which would represent 15% to 25% growth from last year, and adjusted free cash flow of $5.5 billion to $6.5 billion.

Lawler said again that Ford is targeting a total company adjusted EBIT margin of 10% – and an 8% EBIT margin from its EVs – by 2026.

The company’s full-year 2022 guidance continues to assume 10% to 15% growth in vehicle wholesales from 2021, along with significantly higher profits in North America; collective profitability from other regional markets; strong earnings before taxes, though lower than last
year, from Ford Credit; and modest improvement in Mobility and Corporate Other. Lawler said that demand and the resulting order bank for Ford’s iconic ICE and mainstream electric vehicles is – and is expected to remain – strong. Other assumptions include:

• Continued strong pricing, including benefits from actions taken during the year, as the relationship between product volume and pricing remains dynamic
• About $4 billion in headwinds from commodity prices, which Ford anticipates offsetting with improvements in net pricing and mix
• Other inflationary pressures continuing to affect a broad range of costs – now expected to total about $3 billion for the year, up roughly $1 billion from what the company envisioned a quarter ago, with the team actively looking at opportunities to offset increases, and
• Solid, but lower, full-year EBT from Ford Credit of about $3 billion.