Ford Motor reported a 10.3% decline in its second-quarter US new vehicle sales as the company battled a production shortfall for its F-Series pickup trucks caused by fires at aluminum supplier Novelis and a significant drop in all-electric vehicle sales. The twin pressures produced the automaker’s sharpest quarterly volume decline in recent years, even as its bottom line held up better than Wall Street had anticipated.
Volume hit by aluminum shortage and model phase-outs
Ford sold 549,200 vehicles during the second quarter compared with 612,095 units a year earlier, a 10.3% decline that slightly beat Cox Automotive’s projection of an 11.5% drop.
Pure EV sales fell 40.7% during the quarter compared with a year earlier, while F-Series trucks, including the F-150, slipped 11% as Ford began ramping up production after its top aluminum supplier restarted production following two fires late last year. A three-alarm fire at the Novelis aluminum plant in Scriba, near Oswego, New York, on September 16, 2025, caused extensive damage to the plant’s hot mill area. A second significant fire ignited on November 20 at the same facility, about two months after the initial blaze had halted much of its production. Novelis announced on June 10, 2026, that the hot mill at its Oswego facility was back online.
Ford worked through the discontinuation of two models during the quarter. The drop reflected the phase-out of the Ford Escape and Lincoln Corsair. The Escape’s sales fell 74.1% in the quarter.
Ford sold 1,006,515 vehicles through the first half of 2026, down 9.6% from the same period last year. Excluding the model phase-outs and assuming flat rental volumes, Ford estimated its second-quarter sales would have risen approximately 0.5%.
Earnings beat expectations despite revenue drop
Ford reported second-quarter 2026 revenue of $48.3 billion and adjusted EBIT of $2.5 billion. Second-quarter revenue fell 4% year over year, but adjusted EBIT rose 17% to $2.5 billion. Adjusted EBIT for the quarter came in at $2.5 billion, up $400 million from the same period a year ago.
Ford’s adjusted earnings per share of $0.42 surpassed the consensus estimate of $0.35. The automaker lifted its 2026 adjusted EBIT forecast to $10 billion to $11 billion, up from the previous $8.5 billion to $10.5 billion range.
Ford Model e, the electric vehicle segment, recorded an EBIT loss of $919 million, an improvement of $410 million compared with the same quarter in 2025. That narrowing loss was one of the figures management pointed to as evidence of structural progress in its EV business, even as unit sales fell sharply.
The EV segment’s struggles contrast with the still-strong demand Ford sees from fleet and commercial customers, where its Ford Pro division has provided a margin cushion.
F-Series recovery weighted toward second half
Ford plans to increase production of its F-150 and F-Series Super Duty models by more than 50,000 units in 2026 at its plants in Dearborn and Louisville, Kentucky, to recoup some of the lost production volume. Ford CFO Sherry House stated that the company’s F-Series output recovery will extend through the latter part of 2026, adding: “We’re successfully navigating the Novelis aluminum supply recovery plan, and we remain confident in our net $1 billion EBIT improvement in 2026, heavily weighted to the second half of the year.”
Despite the declines, the F-Series remained America’s top-selling truck, and Ford estimates its US retail market share ended the quarter up 0.2 percentage points compared with a year earlier, at 12.3%.
That small market-share gain, even amid a volume slump, suggests Ford held or slightly expanded its position relative to rivals that also faced headwinds.
General Motors beat second-quarter expectations and raised its full-year adjusted EBIT guidance to between $14 billion and $16 billion. Crosstown rival GM saw its own Q2 sales fall 4.2%, as its EV sales also dropped.
Industry context: hybrids carry competitors
Ford’s results came a day after most major automakers reported second-quarter numbers that were better than expected, largely driven by increased demand for hybrid vehicles. Automotive data firm Motor Intelligence estimated US industry sales for June were up 7.5% compared with a year ago, leading to a monthly adjusted selling pace of 16.67 million units, which was higher than many forecasters had expected.
Ford’s heavy bet on battery-electric vehicles, which now face steep discounts across the industry, has left it exposed in a market that has pivoted toward hybrids. Average manufacturer incentives and EV-specific discount data remain subject to revision as monthly figures are finalized.
Ford’s own EV unit economics improved quarter over quarter, but the volume decline shows consumer appetite for its electric lineup has yet to recover.
The company’s ability to restore F-Series output, which management says is heavily weighted to the second half of 2026, will be the single largest variable in whether Ford closes the gap on its two largest US rivals before the year ends.
With GM’s transaction prices holding firm and Toyota continuing to gain share on hybrid strength, Ford’s path back to volume growth runs squarely through its truck plants.
