Ford Motor Co. reported its second quarter results were all up compared to the year-ago results for the auto company. Supply chain improvements and strong results from Ford Pro and its EVs helped pushed the company forward.
The company reported second quarter revenue of $45 billion, up 12% from the $40.2 reported a year ago. Additionally, its net income came in at $1.9 billion, a 1.3% jump over 2022, and its adjusted EBIT earnings were up slightly to $3.8 billion.
“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,” said Ford CEO Jim Farley in a statement. “Ford+ is making us more resilient, efficient and profitable, which you can see in Ford Pro’s breakout second-quarter revenue improvement (22%) and EBIT margin (15%).”
Through the first half of the year, the company’s revenue was up 16% to $86.4 billion while net income increased significantly for the first six months to $3.7 billion from a loss of $2.4 billion for the same period last year.
Big sales mean big money
The company pointed out it was America’s top-selling brand in Q2 — up 11%— as well as the first half of the year. However, it also performed will in other markets outside North America, particularly its trucks and commercial vans.
Quarterly net income was $1.9 billion, nearly three times higher than in the year-ago period and a 4% margin. Adjusted earnings before interest and taxes, or EBIT, grew to $3.8 billion or 8.4% of revenue.
Ford reported cash flow from operations and adjusted free cash flow remain strong, at $5 billion and $2.9 billion, respectively. The result is that the automaker has nearly $30 billion of cash and more than $47 billion of liquidity at the end of Q2 — those are sequential and year-over-year improvements.
CFO John Lawler reiterated that the company has ample resources to simultaneously fund disciplined investment in growth and return capital to shareholders — for the latter, targeting 40% to 50% of adjusted free cash flow.
Good begets more good?
The company’s strong first half performance, especially its Ford Pro unit, which enjoyed a 22% increase in revenue and an 8% margin, gave officials reason to improve its full-year guidance.
Ford is lifting its guidance range for full-year 2023 consolidated adjusted EBIT to between
$11 billion and $12 billion. Likewise, the company is raising its expectations for full-year adjusted free cash flow to between $6.5 billion and $7 billion, with capital expenditures of between $8 billion and $9 billion.