“These businesses have significant room to grow and are central to our 8% margin target by 2029.”

In context

“James D. Farley Jr. (President and CEO): Thank you, Maria. I want to start by thanking our extended Ford team, all of our dealers, and our suppliers for their commitment to delivering on our Ford+ plan. I especially want to highlight all the Ford team members who worked so effectively through the Novelis disruption. I also want to recognize our team in Canada, along with our labor partners, Unifor, under the leadership of Lana Payne, for reaching a ratified three-year agreement covering all of our Canadian employees. Our business in Canada and our manufacturing operations in Oakville are really important to our future at Ford. And this agreement also underscores how important USMCA is to our future at Ford and the opportunity we have to build a framework that levels the playing field for North American manufacturers like Ford against the mass imports from Japan and South Korea that carry a huge currency advantage. In the quarter, we delivered a strong performance, generating $48.3 billion in revenue and $2.5 billion in adjusted EBIT. We are also raising and narrowing our full year adjusted EBIT guidance to between $10 billion and $11 billion, a $1 billion raise at the midpoint. The most important part of the quarter is the growing evidence that our strategy is working toward becoming a more profitable, more disciplined, and generally different company. Our Ford+ plan focuses on three complementary areas. First, we have our core auto operations: our retail and commercial vehicles, that are becoming more profitable and more dependable. Second, we have the software and physical services layer, which is growing margin accretive and built into everything we do at Ford. And third, adjacency businesses such as Ford Energy that open all new sources of profit for the company. We play only where we have real competitive advantage, or we can build one, and we are ruthless about where we put our money. Every dollar must earn durable returns and drive profitable growth. So let's talk through each of these areas. On core automotive operations, our execution is underpinned by a fundamentally stronger industrial system. For more than three years, we have been relentless about building top quality and that work is showing up. In our home market, Ford finished number one among all mainstream brands in the J.D. Power 2026 Initial Quality Study. We see this win as a first down payment on a much more consequential virtuous circle: going from initial quality to long-term durability, lowering our warranty costs even further, fewer recalls, stronger customer loyalty, more pricing power, and for our conquest and growth, improved resell value. Ford's quality renaissance goes hand in hand with our equally intense drive to improve our cost structure. We have significantly reduced our warranty and material cost since 2024, and we continue to optimize cost as we enter a heavy new product launch period over the next three years. Turning to the products themselves, we are reinforcing our strength in our trucks, our vans, our personality utilities and off-roaders: iconic brands and distinctive products delivering real price power. We can see it in the quarter. In Ford Blue, F-Series remains the number one truck brand, outselling the closest competitor by more than 80 thousand units in the first half of this year and is on track for 50 straight years at the top. That is five decades of trust and capability with our customers, and we intend to extend our lead. But it is not just F-Series that makes our truck business strong. We continue to grow our customer base across our entire lineup. This spans every price point in the U.S. truck market, from our Maverick all the way through the top end of our Super Duty. And there is much more to come soon, including an all-new F-Series and an all-new Super Duty. We also continue to see momentum with our off-road enthusiast vehicles. In fact, they now make up 25% of our U.S. sales in the second quarter. We made a huge bet on Bronco, Tremor and Raptor, and it has paid off with higher growth and higher margins. These vehicles are bringing new customers to Ford. They are younger, more affluent, and more geographically diverse. And we are investing to grow our leadership in this space. Hybrids are another strength for Ford we plan to build on. The F-150 hybrid leads among full-size trucks, and the Maverick hybrid achieved record sales in the first half to become America's best-selling hybrid pickup. We plan to extend our hybrids across our entire lineup over the next several years. On the commercial side, Ford Pro is the cornerstone of our global business and holds commercial vehicle market share leadership in both North America and Europe. The Oakville expansion I referred to earlier is on track to launch in the fourth quarter of this year, adding up to 100 thousand units of additional Super Duty capacity. We are investing in Super Duty production to increase our manufacturing flexibility, to add resilience, and to meet pent-up demand. These investments will help drive Pro's future financial performance. Turning to Model e, we are aggressively driving down Gen 1 costs and will become a major scaled competitor as we invest in affordable, versatile EVs. The Louisville plant changeover for the new UEV platform is well underway. You may have seen prototypes now of our first vehicles off the UEV platform testing on roads across the U.S. Customer deliveries will begin next year. The first UEV product will compete in the affordable heart of the U.S. EV market, where we will offer customers a wholly new proposition that we cannot find in the market today. It starts at around $30 thousand. It has more cabin room than the Toyota RAV4 plus it has a pickup truck bed. It has bidirectional charging capability, is incredibly fun to drive, and personalized technology in the experience. In fact, we just announced Apple last week will be the embedded map provider for every UEV platform vehicle, and we are very excited to show you much more about our move to be among the leaders in the EV space. In Europe, as you saw last week, we announced our agreement with Geely, which will bring speed and capital efficiency to our European operations. The second area of our Ford+ plan is software and physical services, including our parts business. These businesses have significant room to grow and are central to our 8% margin target by 2029. The idea is really simple: combine our digital services, our large dealer network, and our physical services into one seamless experience, building a flywheel across software, vehicles, and parts. On software, we are turning a one-time sale into a life-long relationship reset. We now have over 14 million connected vehicles — that is an enormous base to grow from. Our goal is to activate that base, driving real digital usage, and convert engagement into recurring high-margin revenues. Our services are not just digital. They are also physical. We continue to grow our parts business. For example, we are expanding our parts catalog, we are growing our sales to U.S. wholesalers, and co-investing with our dealers to increase service base and our mobile fleet. Customers love our mobile service. We have over 5 thousand mobile service vans and trucks on the road and we see Net Promoter Scores much higher for remote service, leading to higher loyalty. In fact, in Q2, we delivered 1.5 million remote services at Ford, 1.1 million just in the U.S. Finally, we are making progress on our adjacent businesses. Earlier this year, we launched Ford Energy, reporting through Model e. It is a strategic business for us at Ford but one with a very short payback. Ford Energy can win because it is built on capabilities few companies can match: tariff-resilient, world-class U.S. manufacturing, leading battery technology, an iconic American brand that is already familiar to communities who are most in need for grid support and infrastructure upgrades, and, of course, the ability to leverage our vast auto service expertise. By late next year, we expect to reach 20 gigawatt-hours of annual capacity for Ford Energy, and we have potential to expand beyond that. We believe this will position Ford Energy among the leading energy storage manufacturers in North America. Scale matters in this business: it drives efficiency, improves the levelized cost of energy, and creates a competitive advantage that is hard to match without the scale of global auto to leverage. We are building a business that can integrate further into energy and aspires to create value far beyond the sale of our DC blocks, to serve a broad and enduring customer base. We are in talks with a wide range of strategic customers and look forward to sharing more with you at the right time. As you can see, Ford is becoming a more disciplined, higher-return company. We have a strong automotive business with an increased-fit industrial system. To complement that business, we are scaling high-margin software and physical services around a seamless customer experience, while leveraging Ford Credit. Adjacent to all of that, we are building new businesses like Ford Energy, where we can establish a competitive advantage. Over to you, Sherry.”