What changed in this filing

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Item 1. Financial Statements

2026-07-29 compared with 2026-04-30 · 201 added, 146 removed, 548 unchanged (39% of the section changed)

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∘ Changan Ford Automobile Corporation, Ltd.

∘ BlueOval SK, LLC (“BOSK”) ∘ Ford Otomotiv Sanayi Anonim Sirketi (“Ford Otosan”)

∘ None ∘ Ford Otomotiv Sanayi Anonim Sirketi (“Ford Otosan”)

∘ Jiangling Motors Corporation, Ltd.

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SEGMENT INFORMATION (Continued)

Key financial information for the periods ended or at March 31 was as follows (in millions):

Key financial information for the periods ended or at June 30 was as follows (in millions):

Ford Blue Ford

Model e Ford Pro Ford Credit Unallocated Amounts and Eliminations (a) Total

First Quarter 2025

Second Quarter 2025

External revenues $ 25,784 $ 2,357 $ 18,797 $ 3,241 $ 5 $ 50,184

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Total assets 64,141 16,304 4,566 157,804 49,910 292,725

First Quarter 2026

Second Quarter 2026

External revenues $ 26,068 $ 1,026 $ 17,790 $ 3,405 $ 7 $ 48,296

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Investment-related interest income 52 — 18 73 150 293

Equity in net income/(loss) of affiliated companies 54 ( 4 ) 100 13 ( 3 ) 160

Equity in net income/(loss) of affiliated companies 63 ( 3 ) 37 14 ( 2,874 ) (f) ( 2,763 )

Cash outflow for capital spending 1,274 1,056 10 25 17 2,382

Total assets 66,551 8,783 3,850 157,653 48,694 285,531

Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

SEGMENT INFORMATION (Continued)

Key financial information for the periods ended or at June 30 was as follows (in millions):

Ford Blue Ford

Model e Ford Pro Ford Credit Unallocated Amounts and Eliminations (a) Total

First Half 2025

External revenues $ 46,781 $ 3,599 $ 33,978 $ 6,478 $ 7 $ 90,843

Intersegment revenues (b) 24,132 308 — — ( 24,440 ) —

Total revenues $ 70,913 $ 3,907 $ 33,978 $ 6,478 $ ( 24,433 ) $ 90,843

Other segment items (c) 70,156 6,085 30,351 5,253

Segment EBIT/EBT $ 757 $ ( 2,178 ) $ 3,627 $ 1,225 $ 3,431

Reconciliation of Segment EBIT/EBT

Unallocated amounts:

Corporate Other ( 272 )

Interest on debt (excludes $ 3,549 of Ford Credit interest on debt)

Special items (d) ( 1,412 )

Income/(Loss) before income taxes $ 1,162

Other Segment Disclosures

Depreciation and tooling amortization $ 1,493 $ 292 $ 697 $ 1,233 $ 32 $ 3,747

Investment-related interest income 98 2 30 182 407 719

Equity in net income/(loss) of affiliated companies 114 ( 37 ) 136 23 ( 392 ) ( 156 )

Cash outflow for capital spending 2,050 1,713 23 62 58 3,906

First Half 2026

External revenues $ 49,926 $ 2,258 $ 32,513 $ 6,839 $ 13 $ 91,549

Intersegment revenues (b) 20,977 179 — — ( 21,156 ) —

Total revenues $ 70,903 $ 2,437 $ 32,513 $ 6,839 $ ( 21,143 ) $ 91,549

Other segment items (c) 67,826 4,133 29,110 5,299

Segment EBIT/EBT $ 3,077 $ ( 1,696 ) $ 3,403 $ 1,540 $ 6,324

Reconciliation of Segment EBIT/EBT

Unallocated amounts:

Corporate Other ( 333 )

Interest on debt (excludes $ 3,412 of Ford Credit interest on debt)

Special items (g) ( 4,405 )

Income/(Loss) before income taxes $ 879

Other Segment Disclosures

Depreciation and tooling amortization $ 1,491 $ 93 $ 685 $ 1,420 $ 59 $ 3,748

Investment-related interest income 104 1 34 150 320 609

Equity in net income/(loss) of affiliated companies 117 ( 7 ) 137 27 ( 2,877 ) (f) ( 2,603 )

Cash outflow for capital spending 2,609 2,046 18 44 41 4,758

(a) Unallocated amounts include Corporate Other (see above description of corporate expenses and corporate assets) and Special Items.

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Other segment items for the Ford Credit segment primarily includes interest expense and depreciation.

(d) Primarily reflects the cancellation of a previously planned all-electric three-row SUV program and continued ongoing restructuring actions in Europe.

(e) Primarily reflects ongoing restructuring actions in Europe and continued charges related to the EV program cancellations previously announced in December 2025, offset partially by pension and OPEB remeasurements.

(d) Primarily reflects a field service action for fuel injectors, our share of equity method investment asset impairments and write downs and other expenses, and charges related to the cancellation of a previously planned all-electric three-row SUV program and resulting actions.

(e) Primarily reflects BOSK JV disposition (see Note 16) and continued charges related to the EV program cancellations previously announced in December 2025.

(f) Primarily reflects BOSK JV disposition (see Note 16).

(g) Primarily reflects BOSK JV disposition (see Note 16), charges related to the EV program cancellations previously announced in December 2025, and ongoing restructuring actions in Europe, offset partially by pension and OPEB remeasurements.

Management’s Discussion and Analysis of Financial Condition and Results of Operations.

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Trade Policy and Tariffs

As of March 31, 2026, we expect to receive about $2.8 billion related to tariff reimbursements from the federal government and suppliers and offsets to Company payment obligations to suppliers.

Included in this amount is about $1.3 billion related to the International Emergency Economic Powers Act (“IEEPA”) and tariff rulings from the United States Supreme Court and the Court of International Trade in the first quarter of 2026.

Although we have started to receive reimbursements from the federal government (excluding those related to IEEPA), the timing for our receipt of these reimbursements is uncertain and is subject to changes in trade policy.

For additional information regarding the impact and potential impact of trade policy and tariffs on our business, see the Outlook section on page 53 of this 10-Q Report (including the EBIT impact) as well as Item 1A.

As of June 30, 2026, we expect to receive about $3 billion related to tariff reimbursements from the federal government and suppliers and as offsets to Company payment obligations to suppliers.

As previously disclosed, included in this amount is about $1.3 billion related to the International Emergency Economic Powers Act (“IEEPA”) and tariff rulings from the United States Supreme Court and the Court of International Trade in the first quarter of 2026.

Although we have started to receive reimbursements from the federal government (excluding IEEPA), the timing for our receipt of these reimbursements is uncertain and is subject to changes in trade policy.

Despite this uncertainty, we currently expect to receive about $500 million of reimbursements related to IEEPA in the second half of 2026.

For additional information regarding the impact and potential impact of trade policy and tariffs on our business, see Item 1A.

Risk Factors and “Key Trends and Economic Factors Affecting Ford and the Automotive Industry” in Item 7 in our 2025 Form 10-K Report.

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plant in New York disrupted operations at the facility.

Novelis is a major aluminum supplier to Ford, and since the initial fire occurred, we have been working closely with Novelis to address the situation and exploring potential alternative sources of aluminum.

Novelis is a major aluminum supplier to Ford, and since the initial fire occurred, we have been working closely with Novelis to address the situation and have temporarily sourced an alternative supply of aluminum.

We have also sought mitigating actions to minimize potential disruptions to our operations.

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In December 2025, we announced our decision to rationalize our EV manufacturing capacity and product roadmap, including cancelling three previously planned EVs and ending production of the current generation F-150 Lightning EV.

Related to the foregoing, in the first quarter of 2026, we recorded $103 million of charges to be paid in cash, primarily related to contractual commitments related to those programs.

As previously disclosed, we may incur additional expenses and cash expenditures of up to about $4 billion (on a pre-tax basis) related to these actions and will recognize those charges in the quarter they are incurred as a special item.

In addition, in December 2025, Ford, SK On Co., Ltd., and SK Battery America, Inc., and BlueOval SK, LLC (“BOSK”) entered into a Joint Venture Disposition Agreement (“JVDA”), pursuant to which our membership interest in BOSK will be redeemed, and a Ford subsidiary will receive BOSK’s two Kentucky plants and related assets, and will assume the related liabilities.

Upon closing of the transactions contemplated by the JVDA (expected in the second quarter of 2026), we now expect to recognize pre-tax special item charges of about $3.5 billion, which includes about $500 million of cash expenditures.

For additional information about BOSK and the JVDA, see Note 16 of the Notes to the Financial Statements.

The regulatory and market dynamics we have observed in the EV market may continue to occur, which could have a substantial adverse impact on our results of operations and/or business, including our investments in supply, production capacity, and equity method investments.

Further, as previously reported, we have entered into agreements to purchase regulatory compliance credits for current and future model years in various regions, as, in some cases, we plan to utilize credits purchased from third parties to demonstrate regulatory compliance.

Our obligations under these agreements generally are dependent on the continued existence of an underlying regulatory compliance requirement in the applicable jurisdiction, and we have terminated or renegotiated some of these agreements in response to regulatory changes, as authorized by those agreements.

As a result of these terminations, in addition to the delivery of credits to us under purchase agreements that

Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

remain in place and accruals we recorded for credits we are obligated to receive, our future purchase obligations under our compliance credit purchase agreements as of March 31, 2026 totaled about $40 million, down from about $1.6 billion at December 31, 2025.

In addition, we have written off, and may in the future write off, compliance credit assets that we are no longer able to use as a result of legal and policy changes.

Write-offs to date for such credit assets have been immaterial.

Related to the foregoing, in the second quarter of 2026, we recorded $481 million of charges to be paid in cash, primarily related to contractual commitments related to those programs.

As previously disclosed, we may incur additional expenses and cash expenditures related to these actions, which we now expect to be up to $2 billion (on a pre-tax basis).

We will recognize those charges in the quarter they are incurred as a special item.

Also as previously disclosed, in May 2026, Ford, SK On Co., Ltd., and SK Battery America, Inc., and BlueOval SK, LLC (“BOSK”) closed on the transactions contemplated by the Joint Venture Disposition Agreement (“JVDA”) the parties entered into in December 2025.

In conjunction with the closing, our membership interest in BOSK was redeemed, we acquired from BOSK all of BOSK’s interests in two battery plants located in Kentucky, and we entered into a Loan Arrangement and Reimbursement Agreement with U.S.

Department of Energy (the “Ford DOE Loan Agreement”), pursuant to which we assumed from BOSK all of its obligations under its U.S.

Department of Energy loan related to the single Kentucky plant for which advances were made.

Upon closing of the transactions, we recognized pre-tax special item charges of $3.6 billion, which includes about $500 million of cash expenditures.

For additional information about BOSK, the JVDA, and the Ford DOE Loan Agreement, see Notes 12 and 16 of the Notes to the Financial Statements.

We expect that the regulatory and market dynamics we have observed in the EV market will continue to occur, which may have a substantial adverse impact on our results of operations and/or business, including our investments in supply, production capacity, and equity method investments.

For additional discussion of the impact of changes in the EV market to our business, and the risks related thereto, see the “Governmental Standards” discussion in “Item 1.

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RESULTS OF OPERATIONS

In the first quarter of 2026, the net income attributable to Ford Motor Company was $2,548 million, and Company adjusted EBIT was $3,488 million.

In the second quarter of 2026, the net loss attributable to Ford Motor Company was $1,327 million, and Company adjusted EBIT was $2,503 million.

Net income/(loss) includes certain items (“special items”) that are excluded from Company adjusted EBIT.

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Our pre-tax and tax special items were as follows (in millions):

First Quarter

Second Quarter First Half

2025 2026 2025 2026

Restructuring (by Geography)

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EV program cancellations announced in December 2025 $ — $ (481) $ — $ (584)

BOSK JV disposition — (3,612) — (3,612)

All-electric three-row SUV program cancellation and resulting actions (308) (9) (372) 44

Fuel injector field service action (571) — (571) —

Ford share of equity method investment’s asset impairment / other (201) — (201) —

Ford share of BOSK’s asset write-down / other (193) — (193) —

Subtotal Other Items $ (1,273) $ (4,102) $ (1,337) $ (4,152)

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(a) Includes related tax effect on special items and tax special items.

We recorded $226 million of pre-tax special item charges in the first quarter of 2026, primarily reflecting ongoing restructuring actions in Europe and continued charges related to the EV program cancellations previously announced in December 2025, offset partially by the impact of pension and OPEB remeasurement.

We recorded $4,179 million of pre-tax special item charges in the second quarter of 2026, primarily reflecting charges we recognized upon the closing of the transactions contemplated by the BOSK JVDA and charges related to the EV program cancellations previously announced in December 2025.

We recorded a $1,152 million benefit from tax special items in the second quarter of 2026, primarily reflecting the tax effect of pre-tax special item charges and a $273 million benefit from the recognition of a U.S.

Qualified Opportunity Zone tax incentive.

In Note 18 of the Notes to the Financial Statements, special items are reflected as a separate reconciling item, as opposed to being allocated among our segments.

This reflects the fact that management excludes these items from its review of operating segment results for purposes of measuring segment profitability and allocating resources.

This reflects the fact that management excludes these items from its review of operating segment results for purpose of measuring segment profitability and allocating resources.

Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

COMPANY KEY METRICS

The table below shows our first quarter 2026 key metrics for the Company, compared to a year ago.

First Quarter

2025 2026 H / (L)

The table below shows our second quarter and first half 2026 key metrics for the Company, compared to a year ago.

Second Quarter First Half

2025 2026 H / (L) 2025 2026 H / (L)

GAAP Financial Measures

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Net Income/(Loss) ($M) (36) (1,327) $ (1,291) 435 1,221 $ 786

Net Income/(Loss) Margin (%) 1.2 % 5.9 % 4.7 ppts

Net Income/(Loss) Margin (%) (0.1) % (2.7) % (2.7) ppts 0.5 % 1.3 % 0.9 ppts

EPS (Diluted) $ (0.01) $ (0.33) $ (0.32) $ 0.11 $ 0.30 $ 0.19

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EBIT ($M) 2,140 2,503 363 3,159 5,991 2,832

EBIT Margin (%) 2.5 % 8.1 % 5.6 ppts

EBIT Margin (%) 4.3 % 5.2 % 0.9 ppts 3.5 % 6.5 % 3.1 ppts

Adjusted EPS (Diluted) $ 0.37 $ 0.42 $ 0.05 $ 0.51 $ 1.08 $ 0.57

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(a) See Non-GAAP Financial Measure Reconciliations section for reconciliation to GAAP.

In the first quarter of 2026, our diluted earnings per share of Common and Class B Stock was $0.63, and our diluted adjusted earnings per share was $0.66.

Net income/(loss) margin was 5.9% in the first quarter of 2026, up 4.7 percentage points from a year ago.

Company adjusted EBIT margin was 8.1% in the first quarter of 2026, up 5.6 percentage points from a year ago.

The table below shows the details of our first quarter 2026 net income/(loss) attributable to Ford and Company adjusted EBIT (in millions).

First Quarter

2025 2026 H / (L)

In the second quarter of 2026, our diluted earnings/(loss) per share of Common and Class B Stock was a loss of $0.33, and our diluted adjusted earnings per share was $0.42.

Net income/(loss) margin was negative 2.7% in the second quarter of 2026, down 2.7 percentage points from a year ago.

Company adjusted EBIT margin was 5.2% in the second quarter of 2026, up 0.9 percentage points from a year ago.

The table below shows the details of our second quarter and first half 2026 net income/(loss) attributable to Ford and Company adjusted EBIT (in millions).

Second Quarter First Half

2025 2026 H / (L) 2025 2026 H / (L)

Ford Blue $ 661 $ 1,135 $ 474 $ 757 $ 3,077 $ 2,320

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(a) See Non-GAAP Financial Measure Reconciliations section for reconciliation to GAAP.

The year-over-year increase in both net income and Company adjusted EBIT was primarily driven by higher Ford Blue and Ford Pro EBIT and higher Ford Credit EBT, with higher taxes and special item charges a partial offset to net income.

The year-over-year decrease of $1,291 million in net income is primarily explained by higher special item charges, as described on page 36 , offset partially by lower taxes.

The year-over-year increase of $363 million in Company adjusted EBIT in the second quarter of 2026 primarily reflects higher Ford Blue and Model e EBIT and improved Ford Credit EBT, offset partially by lower Ford Pro EBIT.

Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

The tables below and on the following pages provide first quarter 2026 key metrics and the change in first quarter 2026 EBIT compared with first quarter 2025 by causal factor for each of our Ford Blue, Ford Model e, and Ford Pro segments.

The tables below and on the following pages provide second quarter and first half 2026 key metrics and the change in second quarter 2026 EBIT compared with second quarter 2025 by causal factor for each of our Ford Blue, Ford Model e, and Ford Pro segments.

For a description of these causal factors, see Definitions and Information Regarding Ford Blue, Ford Model e, and Ford Pro Causal Factors.

Ford Blue Segment

First Quarter

Key Metrics 2025 2026 H / (L)

Second Quarter First Half

Key Metrics 2025 2026 H / (L) 2025 2026 H / (L)

Wholesale Units (000) (a) 696 639 (57) 1,284 1,223 (61)

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EBIT ($M) 661 1,135 474 757 3,077 2,320

EBIT Margin (%) 0.5 % 8.1 % 7.7 ppts

EBIT Margin (%) 2.6 % 4.4 % 1.8 ppts 1.6 % 6.2 % 4.5 ppts

(a) Includes Ford and Lincoln brand and JMC brand vehicles produced and sold in China by our unconsolidated affiliates (about 97,000 units in Q2 2025 and 82,000 units in Q2 2026).

Change in EBIT by Causal Factor (in millions)

First Quarter 2025 EBIT

Second Quarter 2025 EBIT

Volume / Mix 269

Net Pricing 162

First Quarter 2026 EBIT

In the first quarter of 2026, Ford Blue’s wholesales were about flat compared to a year ago.

The end of production of the Escape in North America and Focus in Europe were largely offset by higher utility wholesales, including Explorer, Bronco, and Expedition.

First quarter 2026 revenue increased 14%, primarily driven by favorable mix, exchange, and net pricing.

Ford Blue’s first quarter 2026 EBIT was $1,942 million, an increase of $1,846 million from a year ago, with an EBIT margin of 8.1%.

The higher EBIT primarily reflects favorable market factors, higher parts and accessories profit, and lower regulatory compliance expenses.

Costs were about flat year over year with the one-time IEEPA tariff benefit of about $700 million recognized in the first quarter of 2026 being offset by higher sourcing costs, including tariffs, associated with the disruption in aluminum supply and higher commodity prices.

Second Quarter 2026 EBIT

In the second quarter of 2026, Ford Blue’s wholesales decreased 8% from a year ago, primarily reflecting the end of production of the Escape in North America and Focus in Europe and the impact of the Middle East conflict, offset partially by higher utility wholesales, including Expedition, Explorer, and Bronco.

Second quarter 2026 revenue increased 1%, driven by favorable mix, exchange, and net pricing, offset partially by lower wholesales.

Ford Blue’s second quarter 2026 EBIT was $1,135 million, an increase of $474 million from a year ago, with an EBIT margin of 4.4%.

The higher EBIT primarily reflects improved market factors, favorable exchange, lower regulatory compliance expense, and higher parts and accessories profit, offset partially by higher cost.

The improved market factors reflect favorable product mix and higher net pricing, offset partially by lower volume.

The higher cost primarily reflects higher commodity prices and temporary sourcing costs associated with the disruption in aluminum supply, offset partially by lower tariffs (excluding temporary Novelis-related).

Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

Ford Model e Segment

First Quarter

Key Metrics 2025 2026 H / (L)

Second Quarter First Half

Key Metrics 2025 2026 H / (L) 2025 2026 H / (L)

Wholesale Units (000) 60 28 (32) 91 62 (29)

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EBIT ($M) (1,329) (919) 410 (2,178) (1,696) 482

EBIT Margin (%) (68.4) % (63.1) % 5.3 ppts

EBIT Margin (%) (56.4) % (89.6) % (33.2) ppts (60.5) % (75.1) % (14.6) ppts

Change in EBIT by Causal Factor (in millions)

First Quarter 2025 EBIT

Second Quarter 2025 EBIT

Volume / Mix 263

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Exchange (12)

First Quarter 2026 EBIT

In the first quarter of 2026, Ford Model e’s wholesales increased 10% from a year ago, primarily reflecting a full quarter of production of the Puma Gen-E and higher Explorer and Capri wholesales in Europe, offset partially by the discontinuation of the F-150 Lightning in North America.

First quarter 2026 revenue was flat compared to a year ago.

Ford Model e’s first quarter 2026 EBIT loss was $777 million, a $72 million improvement from a year ago, with an EBIT margin of negative 63.1%.

The improved EBIT was driven by about $200 million of lower losses on Gen-1 products (including lower warranty costs and higher volume), offset partially by higher investment in future Gen-2 products.

Second Quarter 2026 EBIT

In the second quarter of 2026, Ford Model e’s wholesales decreased 53% from a year ago, primarily reflecting the right-sizing of Mustang Mach-E production to market demand and discontinuation of the F-150 Lightning.

Second quarter 2026 revenue decreased 56%, driven by lower wholesales.

Ford Model e’s second quarter 2026 EBIT loss was $919 million, a $410 million improvement from a year ago, with an EBIT margin of negative 89.6%.

The improved EBIT primarily reflects lower losses on Gen-1 products, including lower volume and a favorable one-time adjustment related to a multi-year supply agreement, offset partially by higher warranty expenses.

Ford Pro Segment

First Quarter

Key Metrics 2025 2026 H / (L)

Second Quarter First Half

Key Metrics 2025 2026 H / (L) 2025 2026 H / (L)

Wholesale Units (000) (a) 429 372 (57) 781 688 (93)

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EBIT ($M) 2,318 1,718 (600) 3,627 3,403 (224)

EBIT Margin (%) 8.6 % 11.4 % 2.8 ppts

EBIT Margin (%) 12.3 % 9.7 % (2.7) ppts 10.7 % 10.5 % (0.2) ppts

(a) Includes Ford brand vehicles produced and sold by our unconsolidated affiliate Ford Otosan in Türkiye (about 21,000 units in Q2 2025 and 18,000 units in Q2 2026).

Change in EBIT by Causal Factor (in millions)

First Quarter 2025 EBIT

Second Quarter 2025 EBIT

Volume / Mix (507)

Net Pricing 52

First Quarter 2026 EBIT

In the first quarter of 2026, Ford Pro’s wholesales decreased 10% from a year ago, driven by lower Super Duty wholesales as a result of the aluminum supply disruption and the end of production of the Escape in North America for fleet customers (including daily rentals), offset partially by the non-recurrence of 2025 planned downtime at the Kentucky Truck and Kansas City Assembly plants.

First quarter 2026 revenue decreased 3%, reflecting lower wholesales, offset partially by favorable exchange and mix.

Ford Pro’s first quarter 2026 EBIT was $1,685 million, an increase of $376 million from a year ago, with an EBIT margin of 11.4%.

The improved EBIT was primarily driven by lower cost, higher parts and accessories profit, favorable exchange, and lower regulatory compliance expenses, offset partially by unfavorable market factors.

The lower costs reflect the one-time IEEPA tariff benefit of about $500 million recognized in the first quarter of 2026 and lower warranty and material costs, offset partially by higher commodity prices.

Exchange (12)

Second Quarter 2026 EBIT

In the second quarter of 2026, Ford Pro’s wholesales decreased 13% from a year ago, primarily reflecting the end of production of the Escape in North America for fleet customers (including daily rental), lower wholesales as a result of the aluminum supply disruption, and lower Ranger wholesales in Europe.

Second quarter 2026 revenue decreased 5%, reflecting lower wholesales, offset partially by favorable mix and exchange.

Ford Pro’s second quarter 2026 EBIT was $1,718 million, a decrease of $600 million from a year ago as we continue to recover from the temporary disruption in aluminum supply, with an EBIT margin of 9.7%.

The lower EBIT was primarily driven by the lower volume, higher commodity prices, and temporary sourcing costs associated with the disruption in aluminum supply.

Favorable mix and net pricing, lower tariffs (excluding temporary Novelis-related), lower regulatory compliance expense, and higher parts and accessories profit were partial offsets.

Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

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The foregoing information regarding Ford Credit’s website and its content is for convenience only and not deemed to be incorporated by reference into this Report nor filed with the SEC.

The tables below provide first quarter 2026 key metrics and the change in first quarter 2026 EBT compared with first quarter 2025 by causal factor for the Ford Credit segment.

The tables below provide second quarter and first half 2026 key metrics and the change in second quarter 2026 EBT compared with second quarter 2025 by causal factor for the Ford Credit segment.

For a description of these causal factors, see Definitions and Information Regarding Ford Credit Causal Factors.

First Quarter

Key Metrics 2025 2026 H / (L)

Second Quarter First Half

Key Metrics 2025 2026 H / (L) 2025 2026 H / (L)

Total Net Receivables ($B) $ 143.7 $ 143.2 $ (0.5)

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EBT ($M) 645 757 $ 112 1,225 1,540 $ 315

ROE (%) 12.3 % 18.2 % 5.9 ppts

ROE (%) 14.9 % 29.1 % 14.2 ppts 13.6 % 23.6 % 10.0 ppts

Other Balance Sheet Metrics

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retail financing only.

portfolio off-lease first quarter auction values at Q1 2026 mix.

portfolio off-lease second quarter auction values at Q2 2026 mix and YTD amounts at YTD 2026 mix.

Change in EBT by Causal Factor (in millions)

First Quarter 2025 EBT

Second Quarter 2025 EBT

Volume / Mix 20

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Lease Residual 26

First Quarter 2026 EBT

Ford Credit’s total net receivables of $144.1 billion were 2% higher than a year ago, explained primarily by a larger operating lease portfolio and exchange, offset partially by lower non-consumer financing.

The first quarter 2026 U.S.

loss-to-receivables ratio of 72 basis points increased from a year ago, primarily reflecting higher repossessions.

auction values increased 1% year over year, reflecting strong customer demand.

Ford Credit’s first quarter 2026 EBT of $783 million was $203 million higher than a year ago, explained primarily by higher financing margin, favorable derivative market valuation adjustments (included in Other), and exchange, offset partially by higher credit losses.

Second Quarter 2026 EBT

Ford Credit’s total net receivables of $143.2 billion were 0.3% lower than a year ago, explained primarily by lower non-consumer financing, exchange, and lower consumer financing, offset partially by a larger operating lease portfolio.

The second quarter 2026 U.S.

loss-to-receivables ratio of 52 basis points increased from a year ago, primarily reflecting higher repossessions and higher severities.

auction values remain stable year over year.

Ford Credit’s second quarter 2026 EBT of $757 million was $112 million higher than a year ago, explained primarily by improved financing margin, net favorable items included in Other, and higher volume and mix.

Included in Other is the non-recurrence of a charge related to U.K.

commissions redress, offset partially by a decrease in favorable derivative market valuation adjustments.

Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

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These include expenses related to setting and directing global policy, providing oversight and stewardship, and promoting the Company’s interests.

In the first quarter of 2026, Corporate Other had a $145 million EBIT loss, compared to a $117 million EBIT loss a year ago.

In the second quarter of 2026, Corporate Other had a $188 million EBIT loss, compared to a $155 million EBIT loss a year ago.

Interest on Debt

Interest on Debt, which consists of interest expense on Company debt excluding Ford Credit, was $350 million in the first quarter of 2026, $62 million higher than a year ago.

Our Provision for/(Benefit from) income taxes for the first quarter of 2026 was a provision of $361 million, resulting in an effective tax rate of 12.4%, partially driven by a benefit resulting from a tax law change in the United Kingdom during the period.

Our first quarter 2026 adjusted effective tax rate, which excludes special items, was 13.9%.

During the second quarter of 2026, we anticipate recognizing a tax benefit of up to $350 million arising from U.S Qualified Opportunity Zone tax incentives.

Interest on Debt, which consists of interest expense on Company debt excluding Ford Credit, was $357 million in the second quarter of 2026, $60 million higher than a year ago, which includes the impact of our assumption of the DOE loan from BOSK.

Our Provision for/(Benefit from) income taxes for the second quarter and first half of 2026 was a benefit of $711 million and $350 million, respectively, resulting in an effective tax rate of 35.0% for the second quarter and negative 39.8% for the first half.

These rates were driven by a benefit of $273 million in the second quarter resulting from the recognition of a U.S.

Qualified Opportunity Zone tax incentive, which was treated as a special item.

The first half rate was also driven by a benefit resulting from a tax law change in the United Kingdom.

Our second quarter and first half 2026 adjusted effective tax rates, which exclude special items, were 20.5% and 16.6%, respectively.

During the third quarter of 2026, we anticipate recognizing a tax benefit of up to $200 million, resulting from legal entity restructuring of our South American operations.

The benefit is expected to be treated as a special item.

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LIQUIDITY AND CAPITAL RESOURCES

At March 31, 2026, total cash, cash equivalents, marketable securities, and restricted cash, including Ford Credit and entities held for sale, was $30.8 billion.

At June 30, 2026, total cash, cash equivalents, marketable securities, and restricted cash, including Ford Credit and entities held for sale, was $31.6 billion.

We consider our key balance sheet metrics to be:

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Company excluding Ford Credit

2025 March 31,

2025 June 30,

Balance Sheets ($B)

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Debt (excluding finance leases) (21.0) (22.6)

Cash Net of Debt (excluding finance leases) 7.7 3.3

Pension Funded Status ($B) (a)

Cash Net of Debt (excluding finance leases) (a) 7.7 (0.3)

Pension Funded Status ($B) (b)

Funded Plans $ 3.7 $ 4.2

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Total Funded Status OPEB $ (4.4) $ (4.3)

(a) Balances at March 31, 2026 reflect net funded status at December 31, 2025, updated for:

(a) June 30, 2026 includes assumption of the DOE loan from BOSK.

(b) Balances at June 30, 2026 reflect net funded status at December 31, 2025, updated for:

service and interest cost;

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Our key priority is to maintain a strong balance sheet to withstand potential stress scenarios, while having resources available to invest in and grow our business.

At March 31, 2026, we had Company cash of $22.0 billion (after the repayment of our 0.00% Convertible Senior Notes, which was not refinanced, and share repurchases under our anti-dilutive share repurchase program), and liquidity of $43.1 billion.

At March 31, 2026, about 82% of Company cash was held by consolidated entities domiciled in the United States.

At June 30, 2026, we had Company cash of $22.3 billion and liquidity of $43.4 billion.

At June 30, 2026, about 86% of Company cash was held by consolidated entities domiciled in the United States.

To be prepared for an economic downturn and other stress scenarios, we target an ongoing Company cash balance at or above $20 billion plus significant additional liquidity above our Company cash target.

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Subject to satisfaction of those conditions, we will be obligated to purchase the materials or otherwise compensate the supplier in an amount determined by the contract.

As of March 31, 2026, our estimated expenditures for the maximum quantity that we are committed to purchase under these offtake agreements through 2035, subject to certain conditions, total approximately $5.9 billion based on our present forecast;

As of June 30, 2026, our estimated expenditures for the maximum quantity that we are committed to purchase under these offtake agreements through 2035, subject to certain conditions, total approximately $6.4 billion based on our present forecast;

however, our forecast could fluctuate from period to period based on market prices, which may result in significant increases or decreases in our estimate.

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We have no economic interest in a supplier’s decision to participate in the SCF program, and we do not provide any guarantees in connection with it.

As of March 31, 2026, the outstanding amount of Ford receivables that suppliers elected to sell to the SCF financial institutions was $141 million.

The amount settled through the SCF program during the first quarter of 2026 was $287 million.

As of June 30, 2026, the outstanding amount of Ford receivables that suppliers elected to sell to the SCF financial institutions was $68 million.

The amount settled through the SCF program during the first half of 2026 was $491 million.

Changes in Company cash excluding Ford Credit are summarized below (in billions):

First Quarter

Second Quarter First Half

2025 2026 2025 2026

Company Excluding Ford Credit

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Numbers may not sum due to rounding.

Our first quarter 2026 Net cash provided by/(used in) operating activities was $1.3 billion, $2.4 billion lower than a year ago (see page 59 for additional information).

The decrease primarily reflects lower accrued liabilities, lower working capital, and Ford Credit operating cash, offset partially by higher net income.

Company adjusted free cash flow was negative $1.9 billion, $0.4 billion lower than a year ago, primarily driven by unfavorable timing differences, higher net spending, and lower working capital, offset partially by higher Company adjusted EBIT excluding Ford Credit and higher Ford Credit distributions.

Capital spending was $2.4 billion in the first quarter of 2026, an increase of $0.6 billion from a year ago.

Our second quarter 2026 Net cash provided by/(used in) operating activities was $4.3 billion, $2.0 billion lower than a year ago (see page 61 for additional information).

The decrease primarily reflects lower net income and lower Ford Credit operating cash flows, offset partially by higher working capital.

Company adjusted free cash flow was $2.1 billion, $0.7 billion lower than a year ago, primarily driven by unfavorable timing differences and higher net spending and tax and interest payments.

Higher Ford Credit distributions, working capital, and Company adjusted EBIT excluding Ford Credit were partial offsets.

Capital spending was $2.4 billion in the second quarter of 2026, an increase of $0.3 billion from a year ago.

We continue to expect full year 2026 capital spending to be in the range of $9.5 billion to $10.5 billion.

First quarter 2026 working capital impact was negative $0.9 billion, driven by higher inventory and receivables, offset partially by higher trade payables, each compared to December 31, 2025.

All other and timing differences were negative $3 billion.

Second quarter 2026 working capital impact was $0.6 billion, driven by higher trade payables, offset partially by higher inventory and higher receivables, each compared to March 31, 2026.

All other and timing differences were $0.6 billion.

Timing differences include differences between accrual-based EBIT and the associated cash flows (e.g., marketing incentive and warranty payments to dealers, JV equity income, compensation payments, and pension and OPEB income or expense).

Cash outflows related to our warranty accruals are expected to occur over several years.

In the first quarter of 2026, we contributed $178 million to our global funded pension plans.

In the second quarter of 2026, we contributed $148 million to our global funded pension plans.

We continue to expect to contribute about $550 million to our global funded pension plans in 2026.

Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

Shareholder distributions (including cash dividends and anti-dilutive share repurchases) were $0.9 billion in the first quarter of 2026.

Shareholder distributions were $0.6 billion in the second quarter of 2026, all of which was attributable to our regular dividend.

Available Credit Lines .

Total Company committed credit lines, excluding Ford Credit, at March 31, 2026 were $23.7 billion, consisting of $13.5 billion of our corporate credit facility, $2.0 billion of our supplemental revolving credit facility, $2.5 billion of our 364-day revolving credit facility, $3.0 billion of our delayed draw term loan facility, and $2.7 billion of local credit facilities.

At March 31, 2026, $2.3 billion of committed Company credit lines, excluding Ford Credit, was utilized under local credit facilities for our affiliates, and the full amount under each of our corporate, supplemental, 364-day, and delayed draw term loan credit facilities was available.

Total Company committed credit lines, excluding Ford Credit, at June 30, 2026 were $23.7 billion, consisting of $13.5 billion of our corporate credit facility, $2.0 billion of our supplemental revolving credit facility, $2.5 billion of our 364-day revolving credit facility, $3.0 billion of our delayed draw term loan facility, and $2.7 billion of local credit facilities.

At June 30, 2026, $2.3 billion of committed Company credit lines, excluding Ford Credit, was utilized under local credit facilities for our affiliates, and the full amount under each of our corporate, supplemental, 364-day, and delayed draw term loan credit facilities was available.

Our corporate, supplemental, and 364-day revolving credit facilities were amended as of April 15, 2026 to extend the maturity dates of the commitments under each facility.

Following the corporate credit facility amendment, $3.4 billion of commitments mature on April 13, 2029 and $10.1 billion of commitments mature on April 15, 2031.

Following the supplemental revolving credit facility amendment, $2.0 billion of commitments mature on April 13, 2029.

Following the 364-day revolving credit facility amendment, $2.5 billion of commitments mature on April 14, 2027.

Lenders under our corporate credit facility have $3.4 billion of commitments maturing on April 13, 2029 and $10.1 billion of commitments maturing on April 15, 2031.

Lenders under our supplemental revolving credit facility have $2.0 billion of commitments maturing on April 13, 2029.

Lenders under our 364-day revolving credit facility have $2.5 billion of commitments maturing on April 14, 2027.

Our delayed draw term loan facility was also amended as of April 15, 2026 to extend the available draw period for the $3.0 billion of commitments to December 31, 2026.

Any unused commitments shall automatically terminate after December 31, 2026, and any loans drawn under the facility will mature on December 31, 2028.

The sustainability-linked targets previously included in the corporate, supplemental, and 364-day credit agreements were removed as part of the amendments described above and the applicable margin and facility fees under those facilities will no longer be adjusted based on whether Ford achieves, or fails to achieve, certain sustainability-linked targets.

The sustainability-linked targets previously included in the corporate, supplemental, and 364-day credit agreements were removed as part of the April 2026 amendments and the applicable margin and facility fees under those facilities will no longer be adjusted based on whether Ford achieves, or fails to achieve, certain sustainability-linked targets.

The corporate credit facility is unsecured and free of material adverse change conditions to borrowing, restrictive financial covenants (for example, interest or fixed-charge coverage ratio, debt-to-equity ratio, and minimum net worth requirements), and credit rating triggers that could limit our ability to obtain funding or trigger early repayment.

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Ford Credit has been designated as a subsidiary borrower under the corporate credit facility and the 364-day revolving credit facility.

As shown in Note 12 of the Notes to the Financial Statements, at March 31, 2026, Company debt excluding Ford Credit was $19.6 billion (including $0.9 billion of finance leases).

This balance is $2.3 billion lower than at December 31, 2025, reflecting the repayment of the principal amount of our 0.00% Convertible Senior Notes due March 15, 2026.

As shown in Note 12 of the Notes to the Financial Statements, at June 30, 2026, Company debt excluding Ford Credit was $23.6 billion (including $1.0 billion of finance leases).

This balance is $1.7 billion higher than at December 31, 2025, primarily reflecting our assumption of the DOE loan from BOSK in May 2026, offset partially by the repayment of the principal amount of our 0.00% Convertible Senior Notes due March 15, 2026 in the first quarter.

We manage Company debt (excluding Ford Credit) levels with a leverage framework that targets investment grade credit ratings through a normal business cycle.

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Ford Credit remains well capitalized with a strong balance sheet and funding diversified across platforms and markets.

Ford Credit ended the first quarter of 2026 with $29.8 billion of liquidity, up $5.2 billion from year-end.

Ford Credit continues to have robust access to capital markets, completing $11 billion of public term issuances through April 28, 2026.

Ford Credit ended the second quarter of 2026 with $27.4 billion of liquidity, up $2.8 billion from year-end.

Ford Credit continues to have robust access to capital markets, completing $19 billion of public term issuances through July 27, 2026.

Key elements of Ford Credit’s funding strategy include:

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2025 December 31,

2025 March 31,

2025 June 30,

Funding Structure

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Securitized Funding as Percent of Total Debt 40.5 % 42.0 % 40.7 %

Net receivables of $144.1 billion at March 31, 2026 were funded primarily with term unsecured debt and term asset-backed securities.

Securitized funding as a percent of total debt was 40.2% as of March 31, 2026.

Net receivables of $143.2 billion at June 30, 2026 were funded primarily with term unsecured debt and term asset-backed securities.

Securitized funding as a percent of total debt was 40.7% as of June 30, 2026.

Public Term Funding Plan.

The following table shows Ford Credit’s issuances for full year 2024 and 2025, planned issuances for full year 2026, and its global public term funding issuances through April 28, 2026, excluding short-term funding programs (in billions):

The following table shows Ford Credit’s issuances for full year 2024 and 2025, planned issuances for full year 2026, and its global public term funding issuances through July 27, 2026, excluding short-term funding programs (in billions):

Forecast Through

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(a) See Definitions and Information Regarding Ford Credit Causal Factors section.

For 2026, Ford Credit continues to project full year public term funding in the range of $24 billion to $30 billion.

For 2026, Ford Credit now projects full year public term funding in the range of $26 billion to $31 billion.

Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

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2025 December 31,

2025 March 31,

2025 June 30,

Liquidity Sources (a)

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Ford Credit’s net liquidity available for use will fluctuate quarterly based on factors including near-term debt maturities, receivable growth and decline, and timing of funding transactions.

At March 31, 2026, Ford Credit’s net liquidity available for use was $29.8 billion, $5.2 billion higher than year-end 2025, reflecting strong access to public funding markets.

At March 31, 2026, Ford Credit’s liquidity sources, including cash, committed asset-backed facilities, and committed unsecured credit facilities, totaled $52.7 billion, down $1.7 billion from year-end 2025, primarily explained by lower cash.

At June 30, 2026, Ford Credit’s net liquidity available for use was $27.4 billion, $2.8 billion higher than year-end 2025, reflecting strong access to public funding markets.

At June 30, 2026, Ford Credit’s liquidity sources, including cash, committed asset-backed facilities, and committed unsecured credit facilities, totaled $52.7 billion, down $1.7 billion from year-end 2025, primarily explained by lower cash and committed asset-backed facilities.

Material Cash Requirements.

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2025 December 31,

2025 March 31,

2025 June 30,

Leverage Calculation

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Ford Credit plans its leverage by considering market conditions and the risk characteristics of its business.

At March 31, 2026, Ford Credit’s financial statement leverage was 9.5:1.

At June 30, 2026, Ford Credit’s financial statement leverage was 9.4:1.

Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

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Pension Plans - Funded Balances.

As of March 31, 2026, our total Company pension overfunded status reported on our consolidated balance sheets was $300 million and reflects the net funded status at December 31, 2025, updated for:

As of June 30, 2026, our total Company pension overfunded status reported on our consolidated balance sheets was $501 million and reflects the net funded status at December 31, 2025, updated for:

service and interest cost;

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Four Quarters Ending

2025 March 31,

2025 June 30,

Adjusted Net Operating Profit/(Loss) After Cash Tax

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Each rating agency may have different criteria for evaluating company risk and, therefore, ratings should be evaluated independently for each rating agency.

There have been no rating actions taken by these NRSROs since the filing of our 2025 Form 10-K Report.

There have been no rating actions taken by these NRSROs since the filing of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026.

The following table summarizes certain of the credit ratings and outlook presently assigned by these four NRSROs:

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Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

We provided 2026 Company guidance in our earnings release furnished on Form 8-K dated April 29, 2026.

The guidance is based on our expectations and best estimates as of April 29, 2026, and assumes no material change to our current assumptions for inflation, logistics issues, production, or macroeconomic conditions.

Our guidance does not include potential impacts of a sustained conflict in the Middle East or a significant downturn in the U.S.

economy, which could have a material impact on industry demand.

We provided 2026 Company guidance in our earnings release furnished on Form 8-K dated July 28, 2026.

The guidance is based on our expectations and best estimates as of July 28, 2026, and assumes no material change to our current assumptions for inflation, logistics issues, production, or macroeconomic conditions.

Our guidance does not include potential impacts of a significant escalation in the Middle East or a material downturn in the U.S.

economy, which could have a substantial impact on industry demand.

Moreover, our guidance has not factored in any new policy changes by the administration in the United States, including future or revised tariffs or related offsets, that have not been announced or tariffs or other policy changes that may be announced by other governments after the date hereof.

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(a) When we provide guidance for Adjusted EBIT and Adjusted Free Cash Flow, we do not provide guidance for the most comparable GAAP measures because, as described in more detail below in “Non-GAAP Measures That Supplement GAAP Measures,” they include items that are difficult to predict with reasonable certainty.

For full-year 2026, we now expect adjusted EBIT of $8.5 billion to $10.5 billion and continue to expect adjusted free cash flow of $5.0 billion to $6.0 billion.

For full-year 2026, we now expect adjusted EBIT of $10.0 billion to $11.0 billion and adjusted free cash flow of $6.0 billion to $7.0 billion.

On a segment basis we expect:

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• Ford Blue EBIT of $5.0 billion to $5.5 billion

• Ford Model e EBIT loss of $4.0 billion to $4.5 billion

• Ford Credit EBT of about $2.5 billion

• Ford Model e EBIT loss of about $4.0 billion

• Ford Credit EBT of above $2.5 billion

Our outlook for 2026 assumes:

• The $1.3 billion adjusted EBIT benefit of IEEPA (with no adjusted free cash flow benefit until 2027)

SAAR of 16.0 million to 16.5 million

industry pricing

• A net $1.0 billion improvement from the Novelis recovery, which includes $1.5 billion to $2.0 billion of temporary costs, including tariffs

• Commodity headwinds of just above $2.0 billion, about $1.0 billion higher than our previous estimate, largely due to higher aluminum pricing driven by global supply constraints.

industry pricing up about 0.5%

• A net $1.0 billion improvement from the Novelis recovery, which includes about $1.5 billion of temporary costs (including tariffs)

• Commodity headwinds of just above $2.0 billion, largely due to higher aluminum pricing driven by global supply constraints.

This excludes Novelis-related aluminum costs.

• Tariff impacts of about $1.0 billion, excluding the one-time IEEPA benefit of about $1.3 billion and temporary tariffs related to Novelis

• Excluding the impact of Novelis, positive market factors, including favorable mix associated with the sunset of low-margin nameplates and benefits from changes in the U.S.

regulatory environment

• A $1.0 billion improvement in material costs and warranty reductions

• A $1.0 billion improvement in material costs and warranty reductions (primarily coverages)

• An incremental investment of about $1.0 billion in Model e to support the ramp of our Universal EV platform and Ford Energy

• IEEPA cash recovery of about $0.5 billion in 2026

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements