Ford Motor Company (F) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue rose 6% year-over-year to $47.8B, with net income of $1.8B and adjusted EBIT of $2.8B, driven by strong Ford Pro performance and higher hybrid sales, while Model e faced continued losses due to pricing pressure and lower volumes.

• Ford Pro delivered robust EBIT of $2.6B with a margin over 15% on 9% revenue growth, while Ford Blue remained profitable in all regions but saw lower EBIT due to higher warranty costs.

• Hybrid sales increased 34%, now nearly 9% of global vehicle mix; Ford remains the #1 ICE brand in America and #2 in EVs.

• Quality improvements recognized by J.D. Power, with Ford jumping 14 spots in the 2024 U.S. Initial Quality Study.

• Adjusted free cash flow for Q2 was $3.2B, and full-year guidance was raised to $7.5B–$8.5B.

Financial highlights

• Q2 adjusted EBIT was $2.8B, margin 5.8%; adjusted free cash flow $3.2B; net income $1.8B; adjusted EPS $0.47.

• Ford Pro EBIT $2.6B, margin 15.1%, revenue up 9% year-over-year; Ford Blue EBIT $1.2B, margin 4.4%, both down year-over-year due to higher warranty costs.

• Model e posted a $1.1B loss, revenue down 37%, despite $400M in cost savings.

• Ford Credit EBT of $343M, slightly down year-over-year; auction values down 9% but up 3% sequentially.

• Cash at quarter-end was $26.6B, with total liquidity of $45B.

Outlook and guidance

• Full-year 2024 adjusted EBIT guidance reaffirmed at $10B–$12B; adjusted free cash flow outlook raised to $7.5B–$8.5B.

• Ford Pro EBIT guidance increased to $9B–$10B; Model e losses expected at $5B–$5.5B; Ford Blue EBIT trimmed to $6B–$6.5B.

• CapEx target remains $8B–$9B, aiming for the low end.

• Ford Credit EBT expected at $1.5B, with double-digit growth.

• U.S. industry growth expected to be flat to modest, with SAAR of 16.0M–16.5M.