Why did Ford raise its profit outlook, and what specific vehicle models are driving this improvement?

Ford raised its profit outlook for the second time this year due to strong consumer demand for high-margin sport-utility vehicles, particularly the Bronco and Explorer SUVs—especially those equipped with expensive off-road performance packages. These profitable models helped offset a 10% drop in U.S. vehicle sales in the second quarter and supported Ford’s ability to generate critical profits while scaling back loss-making electric vehicle operations and absorbing higher costs from tariffs and commodities.

What is Ford Energy, and how does it fit into Ford’s broader strategic shift amid declining EV sales?

Ford Energy is a new $2 billion energy storage business that Ford is investing in as part of a strategic pivot following setbacks in its electric vehicle efforts; the company repurposed an EV-battery plant in Kentucky—originally part of its now-defunct joint venture with SK On—to build batteries for energy storage instead. This move followed a $3.6 billion largely non-cash charge tied to winding down that EV battery venture, and reflects Ford’s broader shift toward monetizing battery technology outside of EVs while targeting 20 gigawatt hours of capacity by year-end and aiming to become a leading North American energy storage manufacturer.

Ford Boosts Outlook on Strong Demand for Profit-Rich SUVs

Jul 28, 2026

Ford increased its annual profit forecast driven by resilient SUV demand and a $2 billion investment in energy storage. The company cites elevated aluminum and steel tariff costs from supply disruptions but plans to recover production losses and expand battery capabilities.

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Ford Raises Profit Outlook Despite Rising Commodity Costs

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Ford Boosts Outlook on Strong Demand for Profit-Rich SUVs

Ford Boosts Outlook on Strong Demand for Profit-Rich SUVs

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