Ford yields 4.1% as Q2 earnings loom with $6.1B trailing loss

Ford Motor Co reports Q2 earnings Tuesday with analysts forecasting EPS of $0.35, a 5.4% decline from a year earlier.

"Ford Pro's commercial and software momentum supports our raised full-year outlook," Chief Executive Officer Jim Farley said after the company's first-quarter beat in April.

The consensus revenue estimate of $45.5 billion would mark a 3.1% decline from the prior year. Ford's first quarter delivered EPS of $0.66, beating the $0.20 consensus by 232%, on $43.25 billion in revenue. The company raised its full-year adjusted EBIT guidance to a range of $8.5 billion to $10.5 billion, up from $8 billion to $10 billion previously.

The stock's 4.1% dividend yield — more than double the S&P 500 average and roughly four times General Motors' roughly 1% yield — and a forward P/E of 8.6 offer a value proposition if Ford's core segments can absorb Model e's expected $4 billion to $4.5 billion in full-year losses. The $6.1 billion trailing loss traces primarily to noncash write-downs from the company's EV strategy reset.

Ford Pro, the commercial vehicle and services unit, remains the company's primary earnings engine. Paid software subscriptions exceeded 900,000 in the first half of 2026, up about 20%, while the segment is expected to generate $6.5 billion to $7.5 billion in EBIT for the full year. Ford Blue, the traditional internal combustion and hybrid business, is guided to $4.5 billion to $5 billion in EBIT.

The Model e electric vehicle segment remains a structural drag. After posting $4.8 billion in losses in 2025 and taking $10.7 billion in impairment charges in the fourth quarter, the unit is expected to lose $4 billion to $4.5 billion in 2026. Second-quarter US sales fell 10% to 549,200 vehicles, partly reflecting a 69% decline in daily rental sales and discontinued models.

Ford's $0.60 annual dividend, paid quarterly at $0.15 per share, yields 4.1% at the current $14.41 share price. The company also repurchased $311 million of stock in the first quarter and has layered in special dividends in prior periods.

The earnings report will test whether Ford Pro's commercial momentum and Ford Blue's profitability can offset the EV drag and justify the stock's current valuation. Investors will watch for any update to full-year guidance and commentary on Model e's path to breakeven.

This article is for informational purposes only and does not constitute investment advice.