345370CZ1

FORD MOTOR COMPANY AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENTS (in millions, except per share amounts) For the periods ended June 30, 2025 2026 2025 2026 Second Quarter First Half (unaudited) Revenues Company excluding Ford Credit $ 46,943 $ 44,891 $ 84,365 $ 84,710 Ford Credit 3,241 3,405 6,478 6,839 Total revenues (Note 3) 50,184 48,296 90,843 91,549 Costs and expenses Cost of sales 44,245 42,216 79,433 77,527 Selling, administrative, and other expenses 2,706 2,684 5,137 5,491 Ford Credit interest, operating, and other expenses 2,722 2,758 5,443 5,564 Total costs and expenses 49,673 47,658 90,013 88,582 Operating income/(loss) 511 638 830 2,967 Interest expense on Company debt excluding Ford Credit 297 357 585 707 Other income/(loss), net (Note 4) 577 449 1,073 1,222 Equity in net income/(loss) of affiliated companies (250) (2,763) (156) (2,603) Income/(Loss) before income taxes 541 (2,033) 1,162 879 Provision for/(Benefit from) income taxes 570 (711) 718 (350) Net income/(loss) (29) (1,322) 444 1,229 Less: Income/(Loss) attributable to noncontrolling interests 7 5 9 8 Net income/(loss) attributable to Ford Motor Company $ (36) $ (1,327) $ 435 $ 1,221 EARNINGS/(LOSS) PER SHARE ATTRIBUTABLE TO FORD MOTOR COMPANY COMMON AND CLASS B STOCK (Note 6) Basic income/(loss) $ (0.01) $ (0.33) $ 0.11 $ 0.31 Diluted income/(loss) (0.01) (0.33) 0.11 0.30 Weighted-average shares used in computation of earnings/(loss) per share Basic shares 3,980 3,987 3,974 3,989 Diluted shares 3,980 3,987 4,018 4,069 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) For the periods ended June 30, 2025 2026 2025 2026 Second Quarter First Half (unaudited) Net income/(loss) $ (29) $ (1,322) $ 444 $ 1,229 Other comprehensive income/(loss), net of tax (Note 15) Foreign currency translation 1,272 122 1,793 (135) Marketable securities 36 (39) 103 (108) Derivative instruments (410) 1 (539) 132 Pension and other postretirement benefits 17 24 39 49 Total other comprehensive income/(loss), net of tax 915 108 1,396 (62) Comprehensive income/(loss) 886 (1,214) 1,840 1,167 Less: Comprehensive income/(loss) attributable to noncontrolling interests 6 5 8 8 Comprehensive income/(loss) attributable to Ford Motor Company $ 880 $ (1,219) $ 1,832 $ 1,159 The accompanying notes are part of the consolidated financial statements. 3 Item 1. Financial Statements (Continued) FORD MOTOR COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in millions) December 31, 2025 June 30, 2026 (unaudited) ASSETS Cash and cash equivalents (Note 7) $ 23,356 $ 18,603 Marketable securities (Note 7) 15,131 12,731 Ford Credit finance receivables, net of allowance for credit losses of $261 and $286 (Note 8) 49,130 45,451 Trade and other receivables, less allowances of $108 and $99 15,398 17,880 Inventories (Note 9) 15,285 16,946 Other assets 5,187 5,880 Total current assets 123,487 117,491 Ford Credit finance receivables, net of allowance for credit losses of $650 and $682 (Note 8) 61,449 59,418 Net investment in operating leases 28,540 29,283 Net property 37,288 39,958 Equity in net assets of affiliated companies 2,753 2,758 Deferred income taxes 21,953 23,107 Other assets 13,690 13,516 Total assets $ 289,160 $ 285,531 LIABILITIES Payables $ 25,809 $ 27,012 Other liabilities and deferred revenue (Note 10 and Note 17) 31,779 29,584 Debt payable within one year (Note 12) Company excluding Ford Credit 5,550 4,381 Ford Credit 51,752 46,956 Total current liabilities 114,890 107,933 Other liabilities and deferred revenue (Note 10 and Note 17) 30,902 30,565 Long-term debt (Note 12) Company excluding Ford Credit 16,369 19,238 Ford Credit 89,665 90,392 Deferred income taxes 1,354 1,648 Total liabilities 253,180 249,776 EQUITY Common Stock, par value $0.01 per share (4,157 million shares issued of 6 billion authorized) 41 42 Class B Stock, par value $0.01 per share (71 million shares issued of 530 million authorized) 1 1 Capital in excess of par value of stock 23,922 23,979 Retained earnings 22,508 22,508 Accumulated other comprehensive income/(loss) (Note 15) (7,710) (7,772) Treasury stock (2,810) (3,039) Total equity attributable to Ford Motor Company 35,952 35,719 Equity attributable to noncontrolling interests 28 36 Total equity 35,980 35,755 Total liabilities and equity $ 289,160 $ 285,531 The following table includes assets to be used to settle liabilities of the consolidated variable interest entities (“VIEs”). These assets and liabilities are included in the consolidated balance sheets above. December 31, 2025 June 30, 2026 (unaudited) ASSETS Cash and cash equivalents $ 2,523 $ 2,510 Ford Credit finance receivables, net 55,773 54,358 Net investment in operating leases 13,572 12,818 Other assets 21 42 LIABILITIES Other liabilities and deferred revenue $ 40 $ 20 Debt 52,054 49,319 The accompanying notes are part of the consolidated financial statements. 4 Item 1. Financial Statements (Continued) FORD MOTOR COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) For the periods ended June 30, 2025 2026 First Half (unaudited) Cash flows from operating activities Net income/(loss) $ 444 $ 1,229 Depreciation and tooling amortization 3,747 3,748 Other amortization (929) (891) Disposition of investment in BOSK non-cash charges (Note 16) — 2,930 Provision for credit and insurance losses 323 359 Pension and other postretirement employee benefits (“OPEB”) expense/(income) (Note 11) 187 (27) Equity method investment (earnings)/losses and impairments in excess of dividends received 261 (107) Foreign currency adjustments 62 (224) Net realized and unrealized (gains)/losses on cash equivalents, marketable securities, and other investments (Note 4) (43) (4) Stock compensation 275 211 Provision for/(Benefit from) deferred income taxes 212 (881) Decrease/(Increase) in finance receivables (wholesale and other) 2,927 1,217 Decrease/(Increase) in accounts receivable and other assets (3,500) (1,249) Decrease/(Increase) in inventory (1,476) (1,713) Increase/(Decrease) in accounts payable and accrued and other liabilities 7,293 577 Other 213 486 Net cash provided by/(used in) operating activities 9,996 5,661 Cash flows from investing activities Capital spending (3,906) (4,758) Acquisitions of finance receivables and operating leases (24,438) (25,196) Collections of finance receivables and operating leases 22,542 23,598 Purchases of marketable securities and other investments (4,440) (3,134) Sales and maturities of marketable securities and other investments 5,593 5,432 Settlements of derivatives (104) 83 Returns of capital from equity method investments (Note 16) 1,700 — Other 42 (43) Net cash provided by/(used in) investing activities (3,011) (4,018) Cash flows from financing activities Cash payments for dividends and dividend equivalents (1,793) (1,206) Purchases of common stock — (311) Net changes in short-term debt (1,110) (1,755) Proceeds from issuance of long-term debt 20,469 24,464 Payments of long-term debt (24,828) (27,364) Other (146) (198) Net cash provided by/(used in) financing activities (7,408) (6,370) Effect of exchange rate changes on cash, cash equivalents, and restricted cash 483 (127) Net increase/(decrease) in cash, cash equivalents, and restricted cash $ 60 $ (4,854) Cash, cash equivalents, and restricted cash at beginning of period (Note 7) $ 23,190 $ 23,750 Net increase/(decrease) in cash, cash equivalents, and restricted cash 60 (4,854) Cash, cash equivalents, and restricted cash at end of period (Note 7) $ 23,250 $ 18,896 The accompanying notes are part of the consolidated financial statements. 5 Item 1. Financial Statements (Continued) FORD MOTOR COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EQUITY (in millions, unaudited) Equity Attributable to Ford Motor Company Capital Stock Cap. in Excess of Par Value of Stock Retained Earnings Accumulated Other Comprehensive Income/(Loss) (Note 15) Treasury Stock Total Equity Attributable to Non-controlling Interests Total Equity Balance at December 31, 2024 $ 42 $ 23,502 $ 33,740 $ (9,639) $ (2,810) $ 44,835 $ 23 $ 44,858 Net income/(loss) — — 471 — — 471 2 473 Other comprehensive income/(loss), net — — — 481 — 481 — 481 Common Stock issued (a) — 60 — — — 60 — 60 Treasury stock/other — — — — — — — — Dividends and dividend equivalents declared ($0.30 per share) (b) — — (1,212) — — (1,212) — (1,212) Balance at March 31, 2025 $ 42 $ 23,562 $ 32,999 $ (9,158) $ (2,810) $ 44,635 $ 25 $ 44,660 Net income/(loss) — — (36) — — (36) 7 (29) Other comprehensive income/(loss), net — — — 916 — 916 (1) 915 Common Stock issued (a) — 153 — — — 153 — 153 Treasury stock/other — — — — — — — — Dividends and dividend equivalents declared ($0.15 per share) (b) — — (611) — — (611) (7) (618) Balance at June 30, 2025 $ 42 $ 23,715 $ 32,352 $ (8,242) $ (2,810) $ 45,057 $ 24 $ 45,081 Balance at December 31, 2025 $ 42 $ 23,922 $ 22,508 $ (7,710) $ (2,810) $ 35,952 $ 28 $ 35,980 Net income/(loss) — — 2,548 — — 2,548 3 2,551 Other comprehensive income/(loss), net — — — (170) — (170) — (170) Common Stock issued (a) 1 (7) — — — (6) — (6) Treasury stock/other — (31) — — (229) (260) — (260) Dividends and dividend equivalents declared ($0.15 per share) (b) — — (611) — — (611) — (611) Balance at March 31, 2026 $ 43 $ 23,884 $ 24,445 $ (7,880) $ (3,039) $ 37,453 $ 31 $ 37,484 Net income/(loss) — — (1,327) — — (1,327) 5 (1,322) Other comprehensive income/(loss), net — — — 108 — 108 — 108 Common Stock issued (a) — 95 — — — 95 — 95 Treasury stock/other — — — — — — — — Dividends and dividend equivalents declared ($0.15 per share) (b) — — (610) — — (610) — (610) Balance at June 30, 2026 $ 43 $ 23,979 $ 22,508 $ (7,772) $ (3,039) $ 35,719 $ 36 $ 35,755 __________ (a)Includes the effect of share-based compensation. (b)Dividends and dividend equivalents declared for Common and Class B Stock. In the first quarter of 2025, in addition to a regular dividend of $0.15 per share, we declared a supplemental dividend of $0.15 per share. The accompanying notes are part of the consolidated financial statements. 6 Item 1. Financial Statements (Continued) FORD MOTOR COMPANY AND SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS Table of Contents Footnote Page Note 1 Presentation 8 Note 2 New Accounting Standards 8 Note 3 Revenue 9 Note 4 Other Income/(Loss) 10 Note 5 Income Taxes 11 Note 6 Capital Stock and Earnings/(Loss) Per Share 11 Note 7 Cash, Cash Equivalents, and Marketable Securities 12 Note 8 Ford Credit Finance Receivables and Allowance for Credit Losses 14 Note 9 Inventories 17 Note 10 Other Liabilities and Deferred Revenue 18 Note 11 Retirement Benefits 19 Note 12 Debt 20 Note 13 Derivative Financial Instruments and Hedging Activities 22 Note 14 Employee Separation Actions and Exit and Disposal Activities 24 Note 15 Accumulated Other Comprehensive Income/(Loss) 25 Note 16 Variable Interest Entities 26 Note 17 Commitments and Contingencies 27 Note 18 Segment Information 30 7 Item 1. Financial Statements (Continued) FORD MOTOR COMPANY AND SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS NOTE 1. PRESENTATION For purposes of this report, “Ford,” the “Company,” “we,” “our,” “us,” or similar references mean Ford Motor Company, our consolidated subsidiaries, and our consolidated VIEs of which we are the primary beneficiary, unless the context requires otherwise. We also make reference to Ford Motor Credit Company LLC, herein referred to as Ford Credit. Our consolidated financial statements are presented in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information, instructions to the Quarterly Report on Form 10-Q, and Rule 10-01 of Regulation S-X. We reclassified certain prior year amounts in our consolidated financial statements to conform to the current year presentation. In the opinion of management, these unaudited financial statements include all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of our results of operations and financial condition for the periods, and at the dates, presented. The results for interim periods are not necessarily indicative of results that may be expected for any other interim period or for the full year. Reference should be made to the financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2025 (“2025 Form 10-K Report”). NOTE 2. NEW ACCOUNTING STANDARDS Adoption of New Accounting Standards Accounting Standards Updates (“ASUs”) adopted during 2026 had no material effect on our consolidated financial statements or financial statement disclosures. Accounting Standards Issued But Not Yet Adopted ASU 2024-03, Disaggregation of Income Statement Expenses (“DISE”). In November 2024, the Financial Accounting Standards Board (“FASB”) issued a new accounting standard to improve the disclosures about an entity’s expenses and address requests from investors for more detailed information about the types of expenses included in commonly presented expense captions. The new standard is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, with retrospective application permitted. We are assessing the effect on our consolidated financial statement disclosures; however, adoption will not affect our consolidated income statements, balance sheets, or statements of cash flows. ASU 2026-02, Environmental Credits and Environmental Credit Obligations. In May 2026, the FASB issued a new accounting standard to provide guidance on the recognition, measurement, presentation, and disclosure of environmental credits and environmental credit obligations. The new standard is effective for interim and annual reporting periods beginning after December 15, 2027, with retrospective application required. We are assessing the effect on our consolidated financial statements and financial statement disclosures. All other ASUs issued but not yet adopted were assessed and determined to be not applicable or are not expected to have a material effect on our consolidated financial statements or financial statement disclosures. 8 Item 1. Financial Statements (Continued) FORD MOTOR COMPANY AND SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS NOTE 3. REVENUE The following tables disaggregate our revenue by major source for the periods ended June 30 (in millions): Second Quarter 2025 Company excluding Ford Credit Ford Credit Consolidated Vehicles, parts, and accessories $ 45,202 $ — $ 45,202 Used vehicles 780 — 780 Services and other revenue (a) 884 19 903 Revenues from sales and services 46,866 19 46,885 Leasing income 77 1,176 1,253 Financing income — 2,008 2,008 Insurance income — 38 38 Total revenues $ 46,943 $ 3,241 $ 50,184 Second Quarter 2026 Company excluding Ford Credit Ford Credit Consolidated Vehicles, parts, and accessories $ 42,736 $ — $ 42,736 Used vehicles 1,103 — 1,103 Services and other revenue (a) 972 18 990 Revenues from sales and services 44,811 18 44,829 Leasing income 80 1,374 1,454 Financing income — 1,974 1,974 Insurance income — 39 39 Total revenues $ 44,891 $ 3,405 $ 48,296 First Half 2025 Company excluding Ford Credit Ford Credit Consolidated Vehicles, parts, and accessories $ 81,069 $ — $ 81,069 Used vehicles 1,465 — 1,465 Services and other revenue (a) 1,687 37 1,724 Revenues from sales and services 84,221 37 84,258 Leasing income 144 2,307 2,451 Financing income — 4,054 4,054 Insurance income — 80 80 Total revenues $ 84,365 $ 6,478 $ 90,843 First Half 2026 Company excluding Ford Credit Ford Credit Consolidated Vehicles, parts, and accessories $ 80,380 $ — $ 80,380 Used vehicles 2,250 — 2,250 Services and other revenue (a) 1,925 41 1,966 Revenues from sales and services 84,555 41 84,596 Leasing income 155 2,720 2,875 Financing income — 3,997 3,997 Insurance income — 81 81 Total revenues $ 84,710 $ 6,839 $ 91,549 __________ (a)Includes extended service contract revenue. 9 Item 1. Financial Statements (Continued) FORD MOTOR COMPANY AND SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS NOTE 3. REVENUE (Continued) The amount of consideration we receive and revenue we recognize on our vehicles, parts, and accessories varies with changes in return rights, marketing incentives we offer to our customers and their customers, and other pricing adjustments. Estimates of marketing incentives and other pricing adjustments are based on our expectation of retail and fleet sales volumes, mix of products to be sold, competitor actions, and incentive programs to be offered. Customer acceptance of products and programs, as well as other market conditions, will affect these estimates. As a result of changes in our estimate of variable consideration (e.g., marketing incentives), we recorded an increase related to revenue recognized in prior periods of $90 million and $197 million in the second quarter of 2025 and 2026, respectively. We had a balance of $6.2 billion and $6.4 billion of unearned revenue associated primarily with outstanding extended service contracts reported in Other liabilities and deferred revenue at December 31, 2025 and June 30, 2026, respectively. We expect to recognize approximately $1.0 billion of the unearned amount in the remainder of 2026, $1.7 billion in 2027, and $3.7 billion thereafter. We recognized $516 million and $575 million of unearned amounts from prior years as revenue during the second quarter of 2025 and 2026, respectively, and $1.0 billion and $1.2 billion in the first half of 2025 and 2026, respectively. Amounts paid to dealers to obtain extended service contracts are deferred and recorded as Other assets. Our deferred cost balances were $307 million and $295 million as of December 31, 2025 and June 30, 2026, respectively. We recognized $22 million and $33 million of amortization during the second quarter of 2025 and 2026, respectively, and $52 million and $60 million in the first half of 2025 and 2026, respectively. NOTE 4. OTHER INCOME/(LOSS) The amounts included in Other income/(loss), net for the periods ended June 30 were as follows (in millions): Second Quarter First Half 2025 2026 2025 2026 Net periodic pension and OPEB income/(cost), excluding service cost (Note 11) $ 14 $ (11) $ 25 $ 227 Investment-related interest income 368 293 719 609 Interest income/(expense) on income taxes 1 (8) (16) (12) Realized and unrealized gains/(losses) on cash equivalents, marketable securities, and other investments 11 (2) 43 4 Gains/(Losses) on changes in investments in affiliates 1 8 8 5 Royalty income 107 98 214 209 Other 75 71 80 180 Total $ 577 $ 449 $ 1,073 $ 1,222 10 Item 1. Financial Statements (Continued) FORD MOTOR COMPANY AND SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS NOTE 5. INCOME TAXES For interim tax reporting, we estimate one single effective tax rate for tax jurisdictions not subject to a valuation allowance, which is applied to the year-to-date ordinary income/(loss). Tax effects of significant unusual or infrequently occurring items are excluded from the estimated annual effective tax rate calculation and recognized in the interim period in which they occur. 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. The first half rate was also driven by a benefit resulting from a tax law change in the United Kingdom. NOTE 6. CAPITAL STOCK AND EARNINGS/(LOSS) PER SHARE Earnings/(Loss) Per Share Attributable to Ford Motor Company Common and Class B Stock Basic and diluted earnings/(loss) per share were calculated using the following (in millions): Second Quarter First Half 2025 2026 2025 2026 Net income/(loss) attributable to Ford Motor Company $ (36) $ (1,327) $ 435 $ 1,221 Basic and Diluted Shares Basic shares (average shares outstanding) 3,980 3,987 3,974 3,989 Net dilutive options, unvested restricted stock units, and unvested restricted stock shares (a) — — 44 80 Diluted shares 3,980 3,987 4,018 4,069 _________ (a)In the second quarter of 2025 and 2026, there were 45 million and 79 million shares, respectively, excluded from the calculation of diluted earnings/(loss) per share, due to their anti-dilutive effect. 11 Item 1. Financial Statements (Continued) FORD MOTOR COMPANY AND SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS NOTE 7. CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES The fair values of cash, cash equivalents, and marketable securities were as follows (in millions): December 31, 2025 Fair Value Level Company excluding Ford Credit Ford Credit Consolidated Cash and cash equivalents U.S. government 1 $ 1,649 $ 70 $ 1,719 U.S. government agencies 2 610 400 1,010 Non-U.S. government and agencies 2 1,300 1,082 2,382 Corporate debt 2 1,404 780 2,184 Total marketable securities classified as cash equivalents 4,963 2,332 7,295 Cash, time deposits, and money market funds 9,123 6,938 16,061 Total cash and cash equivalents $ 14,086 $ 9,270 $ 23,356 Marketable securities U.S. government 1 $ 3,817 $ 224 $ 4,041 U.S. government agencies 2 1,319 — 1,319 Non-U.S. government and agencies 2 2,043 91 2,134 Corporate debt 2 6,755 269 7,024 Other marketable securities 2 413 200 613 Total marketable securities $ 14,347 $ 784 $ 15,131 Restricted cash $ 251 $ 107 $ 358 Cash, cash equivalents, and restricted cash - held for sale $ 36 $ — $ 36 June 30, 2026 Fair Value Level Company excluding Ford Credit Ford Credit Consolidated Cash and cash equivalents U.S. government 1 $ 200 $ 84 $ 284 U.S. government agencies 2 335 — 335 Non-U.S. government and agencies 2 850 642 1,492 Corporate debt 2 366 772 1,138 Total marketable securities classified as cash equivalents 1,751 1,498 3,249 Cash, time deposits, and money market funds 8,426 6,928 15,354 Total cash and cash equivalents $ 10,177 $ 8,426 $ 18,603 Marketable securities U.S. government 1 $ 2,902 $ 227 $ 3,129 U.S. government agencies 2 910 — 910 Non-U.S. government and agencies 2 1,832 93 1,925 Corporate debt 2 5,927 269 6,196 Other marketable securities 2 372 199 571 Total marketable securities $ 11,943 $ 788 $ 12,731 Restricted cash $ 187 $ 106 $ 293 Cash, cash equivalents, and restricted cash - held for sale $ — $ — $ — 12 Item 1. Financial Statements (Continued) FORD MOTOR COMPANY AND SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS NOTE 7. CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES (Continued) The cash equivalents and marketable securities accounted for as available-for-sale (“AFS”) securities were as follows (in millions): December 31, 2025 Fair Value of Securities with Contractual Maturities Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Within 1 Year After 1 Year through 5 Years After 5 Years Company excluding Ford Credit U.S. government $ 3,724 $ 25 $ (2) $ 3,747 $ 356 $ 3,391 $ — U.S. government agencies 1,358 6 (8) 1,356 460 892 4 Non-U.S. government and agencies 1,958 12 (8) 1,962 553 1,400 9 Corporate debt 8,065 65 (1) 8,129 2,925 5,200 4 Other marketable securities 385 3 — 388 2 357 29 Total $ 15,490 $ 111 $ (19) $ 15,582 $ 4,296 $ 11,240 $ 46 June 30, 2026 Fair Value of Securities with Contractual Maturities Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Within 1 Year After 1 Year through 5 Years After 5 Years Company excluding Ford Credit U.S. government $ 2,842 $ 1 $ (16) $ 2,827 $ 272 $ 2,545 $ 10 U.S. government agencies 920 — (11) 909 172 737 — Non-U.S. government and agencies 1,842 2 (15) 1,829 382 1,447 — Corporate debt 6,272 17 (24) 6,265 796 5,400 69 Other marketable securities 335 1 (1) 335 — 295 40 Total $ 12,211 $ 21 $ (67) $ 12,165 $ 1,622 $ 10,424 $ 119 Sales proceeds and gross realized gains/losses from the sale of AFS securities for the periods ended June 30 were as follows (in millions): Second Quarter First Half 2025 2026 2025 2026 Company excluding Ford Credit Sales proceeds $ 992 $ 1,212 $ 3,441 $ 3,820 Gross realized gains 4 5 9 15 Gross realized losses 1 1 4 2 We determine credit losses on AFS debt securities using the specific identification method. During the first half of 2026, we did not recognize any credit losses. Unrealized losses on securities are due to changes in interest rates and market liquidity. Cash, Cash Equivalents, and Restricted Cash Cash, cash equivalents, and restricted cash, as reported on our consolidated statements of cash flows, were as follows (in millions): December 31, 2025 June 30, 2026 Cash and cash equivalents $ 23,356 $ 18,603 Restricted cash (a) 358 293 Cash, cash equivalents, and restricted cash - held for sale 36 — Total cash, cash equivalents, and restricted cash $ 23,750 $ 18,896 __________ (a)Included in Other assets in the non-current assets section of our consolidated balance sheets. 13 Item 1. Financial Statements (Continued) FORD MOTOR COMPANY AND SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS NOTE 8. FORD CREDIT FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES Ford Credit manages finance receivables as “consumer” and “non-consumer” portfolios. The receivables are generally secured by the vehicles, inventory, or other property being financed. Finance receivables are recorded at the time of origination or purchase at fair value and are subsequently reported at amortized cost, net of any allowance for credit losses. For all finance receivables, Ford Credit defines “past due” as any payment, including principal and interest, that is at least 31 days past the contractual due date. Ford Credit finance receivables, net were as follows (in millions): December 31, 2025 June 30, 2026 Consumer Retail installment contracts, gross $ 80,467 $ 77,504 Finance leases, gross 9,274 8,890 Retail financing, gross 89,741 86,394 Unearned interest supplements (4,486) (3,934) Consumer finance receivables 85,255 82,460 Non-Consumer Dealer financing 26,235 23,377 Non-Consumer finance receivables 26,235 23,377 Total recorded investment $ 111,490 $ 105,837 Recorded investment in finance receivables $ 111,490 $ 105,837 Allowance for credit losses (911) (968) Total finance receivables, net $ 110,579 $ 104,869 Current portion $ 49,130 $ 45,451 Non-current portion 61,449 59,418 Total finance receivables, net $ 110,579 $ 104,869 Net finance receivables subject to fair value (a) $ 101,822 $ 96,525 Fair value (b) 102,499 96,645 __________ (a)Net finance receivables subject to fair value exclude finance leases. (b)The fair value of finance receivables is categorized within Level 3 of the fair value hierarchy. Ford Credit’s finance leases are comprised of sales-type and direct financing leases. Financing revenue from finance leases for the second quarter of 2025 and 2026 was $148 million and $152 million, respectively, and for the first half of 2025 and 2026 was $285 million and $307 million, respectively, and is included in Ford Credit revenues on our consolidated income statements. At December 31, 2025 and June 30, 2026, accrued interest was $314 million and $286 million, respectively, which we report in Other assets in the current assets section of our consolidated balance sheets. Included in the recorded investment in finance receivables at December 31, 2025 and June 30, 2026 were consumer receivables of $43.8 billion and $42.5 billion, respectively, and non-consumer receivables of $20.3 billion and $19.0 billion, respectively, (including Ford Blue, Ford Model e, and Ford Pro receivables sold to Ford Credit, which we report in Trade and other receivables) that have been sold for legal purposes in securitization transactions but continue to be reported in our consolidated financial statements. The receivables are available only for payment of the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions; they are not available to pay the other obligations or the claims of Ford Credit’s other creditors. Ford Credit holds the right to receive the excess cash flows not needed to pay the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions. 14 Item 1. Financial Statements (Continued) FORD MOTOR COMPANY AND SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS NOTE 8. FORD CREDIT FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued) Credit Quality Consumer Portfolio. Credit quality ratings for consumer receivables are based on aging. Receivables over 60 days past due are in intensified collection status. The credit quality analysis of consumer receivables at December 31, 2025 and gross charge-offs during the year ended December 31, 2025 were as follows (in millions): Amortized Cost Basis by Origination Year Prior to 2021 2021 2022 2023 2024 2025 Total Percent Consumer 31 - 60 days past due $ 61 $ 65 $ 139 $ 228 $ 275 $ 166 $ 934 1.1 % Greater than 60 days past due 21 24 51 75 89 60 320 0.4 Total past due 82 89 190 303 364 226 1,254 1.5 Current 1,139 2,206 6,290 15,071 26,716 32,579 84,001 98.5 Total $ 1,221 $ 2,295 $ 6,480 $ 15,374 $ 27,080 $ 32,805 $ 85,255 100.0 % Gross charge-offs $ 54 $ 54 $ 124 $ 187 $ 205 $ 42 $ 666 The credit quality analysis of consumer receivables at June 30, 2026 and gross charge-offs during the first half of 2026 were as follows (in millions): Amortized Cost Basis by Origination Year Prior to 2022 2022 2023 2024 2025 2026 Total Percent Consumer 31 - 60 days past due $ 74 $ 99 $ 175 $ 233 $ 199 $ 52 $ 832 1.0 % Greater than 60 days past due 30 39 62 84 71 13 299 0.4 Total past due 104 138 237 317 270 65 1,131 1.4 Current 1,729 4,190 10,927 21,871 28,152 14,460 81,329 98.6 Total $ 1,833 $ 4,328 $ 11,164 $ 22,188 $ 28,422 $ 14,525 $ 82,460 100.0 % Gross charge-offs $ 32 $ 47 $ 83 $ 114 $ 79 $ 3 $ 358 Non-Consumer Portfolio. The credit quality of dealer financing receivables is evaluated based on Ford Credit’s internal dealer risk rating analysis. Ford Credit uses a proprietary model to assign each dealer a risk rating. This model uses historical dealer performance data to identify key factors about a dealer that are considered most significant in predicting a dealer’s ability to meet its financial obligations. Ford Credit also considers numerous other financial and qualitative factors of the dealer’s operations, including capitalization and leverage, liquidity and cash flow, profitability, and credit history with Ford Credit and other creditors. Dealers are assigned to one of four groups according to risk ratings as follows: •Group I – strong to superior financial metrics •Group II – fair to favorable financial metrics •Group III – marginal to weak financial metrics •Group IV – poor financial metrics, including dealers classified as uncollectible Ford Credit generally suspends credit lines and extends no further funding to dealers classified in Group IV. 15 Item 1. Financial Statements (Continued) FORD MOTOR COMPANY AND SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS NOTE 8. FORD CREDIT FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued) The credit quality analysis of dealer financing receivables at December 31, 2025 and gross charge-offs during the year ended December 31, 2025 were as follows (in millions): Amortized Cost Basis by Origination Year Wholesale Loans Dealer Loans Prior to 2021 2021 2022 2023 2024 2025 Total Total Percent Group I $ 269 $ 68 $ 31 $ 149 $ 78 $ 268 $ 863 $ 20,608 $ 21,471 81.8 % Group II 25 8 4 33 46 44 160 3,979 4,139 15.8 Group III 1 — — 2 1 11 15 584 599 2.3 Group IV — — — — — 2 2 24 26 0.1 Total (a) $ 295 $ 76 $ 35 $ 184 $ 125 $ 325 $ 1,040 $ 25,195 $ 26,235 100.0 % Gross charge-offs $ — $ — $ — $ 1 $ — $ — $ 1 $ 10 $ 11 __________ (a)Total past due dealer financing receivables at December 31, 2025 were $8 million. The credit quality analysis of dealer financing receivables at June 30, 2026 and gross charge-offs during the first half of 2026 were as follows (in millions): Amortized Cost Basis by Origination Year Wholesale Loans Dealer Loans Prior to 2022 2022 2023 2024 2025 2026 Total Total Percent Group I $ 280 $ 28 $ 138 $ 78 $ 166 $ 149 $ 839 $ 18,111 $ 18,950 81.1 % Group II 34 3 34 47 24 29 171 3,554 3,725 15.9 Group III 6 — — 1 1 6 14 659 673 2.9 Group IV — — — — 1 — 1 28 29 0.1 Total (a) $ 320 $ 31 $ 172 $ 126 $ 192 $ 184 $ 1,025 $ 22,352 $ 23,377 100.0 % Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ 5 $ 5 __________ (a)Total past due dealer financing receivables at June 30, 2026 were $8 million. Allowance for Credit Losses The allowance for credit losses represents an estimate of the lifetime expected credit losses inherent in finance receivables as of the balance sheet date. The adequacy of the allowance for credit losses is assessed quarterly. Adjustments to the allowance for credit losses are made by recording charges to Ford Credit interest, operating, and other expenses on our consolidated income statements. The uncollectible portion of a finance receivable is charged to the allowance for credit losses at the earlier of when an account is deemed to be uncollectible or when an account is 120 days delinquent, taking into consideration the financial condition of the customer or borrower, the value of the collateral, recourse to guarantors, and other factors. Charge-offs on finance receivables include uncollected amounts related to principal, interest, late fees, and other allowable charges. Recoveries on finance receivables previously charged off as uncollectible are credited to the allowance for credit losses. In the event Ford Credit repossesses the collateral, the receivable is charged off and the collateral is recorded at its estimated fair value less costs to sell and reported in Other assets on our consolidated balance sheets. 16 Item 1. Financial Statements (Continued) FORD MOTOR COMPANY AND SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS NOTE 8. FORD CREDIT FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued) An analysis of the allowance for credit losses related to finance receivables for the periods ended June 30 was as follows (in millions): Second Quarter 2025 First Half 2025 Consumer Non-Consumer Total Consumer Non-Consumer Total Allowance for credit losses Beginning balance $ 872 $ 9 $ 881 $ 860 $ 4 $ 864 Charge-offs (147) (13) (160) (313) (14) (327) Recoveries 45 — 45 85 — 85 Provision for credit losses 105 9 114 240 14 254 Other (a) 10 — 10 13 1 14 Ending balance $ 885 $ 5 $ 890 $ 885 $ 5 $ 890 Second Quarter 2026 First Half 2026 Consumer Non-Consumer Total Consumer Non-Consumer Total Allowance for credit losses Beginning balance $ 929 $ 8 $ 937 $ 902 $ 9 $ 911 Charge-offs (161) — (161) (358) (5) (363) Recoveries 48 4 52 94 5 99 Provision for credit losses 147 3 150 316 6 322 Other (a) (10) — (10) (1) — (1) Ending balance $ 953 $ 15 $ 968 $ 953 $ 15 $ 968 __________ (a) Includes gains/(losses) on unguaranteed residuals on retail balloon and finance lease receivables as well as amounts related to foreign currency translation adjustments. NOTE 9. INVENTORIES Inventories were as follows (in millions): December 31, 2025 June 30, 2026 Raw materials, work-in-process, and supplies $ 6,020 $ 6,458 Finished products 9,265 10,488 Total inventories $ 15,285 $ 16,946 17 Item 1. Financial Statements (Continued) FORD MOTOR COMPANY AND SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS NOTE 10. OTHER LIABILITIES AND DEFERRED REVENUE Other liabilities and deferred revenue were as follows (in millions): December 31, 2025 June 30, 2026 Current Dealer and dealers’ customer allowances and claims $ 15,293 $ 14,357 Deferred revenue 4,489 4,242 Employee benefit plans 3,507 2,510 Accrued interest 1,453 1,458 Operating lease liabilities 567 551 OPEB (a) 331 328 Pension (a) 228 227 Other (b) 5,911 5,911 Total current other liabilities and deferred revenue $ 31,779 $ 29,584 Non-current Dealer and dealers’ customer allowances and claims $ 12,136 $ 12,759 Deferred revenue 5,360 5,513 OPEB (a) 4,031 3,930 Pension (a) 3,701 3,508 Operating lease liabilities 1,835 1,778 Employee benefit plans 792 832 Other (b) 3,047 2,245 Total non-current other liabilities and deferred revenue $ 30,902 $ 30,565 __________ (a)Balances at June 30, 2026 reflect pension and OPEB liabilities at December 31, 2025, updated for: service and interest cost; expected return on assets; curtailments, settlements, and associated interim remeasurement (where applicable); separation expense; actual benefit payments; and cash contributions. For plans without interim remeasurement, the discount rate and rate of expected return assumptions are unchanged from year-end 2025. Included in Other assets are pension assets of $3.7 billion and $4.2 billion at December 31, 2025 and June 30, 2026, respectively. (b)Includes current derivative liabilities of $0.5 billion at both December 31, 2025 and June 30, 2026. Includes non-current derivative liabilities of $0.5 billion at both December 31, 2025 and June 30, 2026 (see Note 13). 18 Item 1. Financial Statements (Continued) FORD MOTOR COMPANY AND SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS NOTE 11. RETIREMENT BENEFITS Defined Benefit Plans - Expense The pre-tax net periodic benefit cost/(income) for our defined benefit pension and OPEB plans for the periods ended June 30 were as follows (in millions): Second Quarter 2025 2026 Pension Benefits OPEB Pension Benefits OPEB U.S. Plans Non-U.S. Plans Worldwide U.S. Plans Non-U.S. Plans Worldwide Service cost $ 52 $ 50 $ 5 $ 53 $ 40 $ 5 Interest cost 393 238 55 353 252 49 Expected return on assets (457) (289) — (449) (293) — Amortization of prior service costs/(credits) 22 6 2 22 6 3 Net remeasurement (gain)/loss — — — — 54 — Separation costs/other 5 11 — — 10 — Settlements and curtailments — — — — 4 — Net periodic benefit cost/(income) $ 15 $ 16 $ 62 $ (21) $ 73 $ 57 First Half 2025 2026 Pension Benefits OPEB Pension Benefits OPEB U.S. Plans Non-U.S. Plans Worldwide U.S. Plans Non-U.S. Plans Worldwide Service cost $ 104 $ 98 $ 10 $ 106 $ 84 $ 10 Interest cost 786 462 110 706 500 99 Expected return on assets (913) (567) — (898) (588) — Amortization of prior service costs/(credits) 44 12 4 44 12 5 Net remeasurement (gain)/loss — (10) — — (189) — Separation costs/other 12 35 — — 63 — Settlements and curtailments — — — — 19 — Net periodic benefit cost/(income) $ 33 $ 30 $ 124 $ (42) $ (99) $ 114 The service cost component is included in Cost of sales and Selling, administrative, and other expenses. Other components of net periodic benefit cost/(income) are included in Other income/(loss), net on our consolidated income statements. Pension Plan Contributions During 2026, we continue to expect to contribute about $550 million of cash to our global funded pension plans. We also expect to make about $400 million of benefit payments to participants in unfunded plans. In the first half of 2026, we contributed $326 million to our global funded pension plans and made $181 million of benefit payments to participants in unfunded plans. 19 Item 1. Financial Statements (Continued) FORD MOTOR COMPANY AND SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS NOTE 12. DEBT The carrying value of Company debt excluding Ford Credit and Ford Credit debt was as follows (in millions): December 31, 2025 June 30, 2026 Company excluding Ford Credit Debt payable within one year Short-term $ 1,355 $ 1,505 Long-term debt payable within one year Public unsecured debt securities 1,672 1,672 U.K. Export Finance Program — 992 Convertible notes (a) 2,300 — Other debt (including finance leases) (b) 226 222 Unamortized (discount)/premium and issuance costs (3) (10) Total debt payable within one year 5,550 4,381 Long-term debt payable after one year Public unsecured debt securities 13,087 13,087 U.S. Department of Energy Loan — 3,805 U.K. Export Finance Program 2,355 1,323 Other debt (including finance leases) (b) 1,210 1,279 Unamortized (discount)/premium and issuance costs (283) (256) Total long-term debt payable after one year 16,369 19,238 Total Company excluding Ford Credit $ 21,919 $ 23,619 Fair value of Company debt excluding Ford Credit (c) $ 21,640 $ 23,191 Ford Credit Debt payable within one year Short-term $ 18,350 $ 16,260 Long-term payable within one year Unsecured debt 13,625 12,426 Asset-backed debt 19,831 18,321 Unamortized (discount)/premium and issuance costs (18) (18) Fair value adjustments (d) (36) (33) Total debt payable within one year 51,752 46,956 Long-term debt payable after one year Unsecured debt 52,357 54,881 Asset-backed debt 37,741 36,254 Unamortized (discount)/premium and issuance costs (229) (234) Fair value adjustments (d) (204) (509) Total long-term debt payable after one year 89,665 90,392 Total Ford Credit $ 141,417 $ 137,348 Fair value of Ford Credit debt (c) $ 144,213 $ 139,545 __________ (a)On March 16, 2026, we settled the principal amount of our $2.3 billion 0.00% Convertible Senior Notes in cash and issued 6.6 million shares of Ford Common Stock held as treasury stock to settle the conversion premium, which were subsequently repurchased as part of our anti-dilutive share repurchase program. (b)At December 31, 2025 and June 30, 2026, long-term finance leases payable within one year were $136 million and $134 million, respectively, and long-term finance leases payable after one year were $754 million and $849 million, respectively. (c)At December 31, 2025 and June 30, 2026, the fair value of debt includes $1.4 billion and $1.5 billion of Company excluding Ford Credit short-term debt, respectively, and $16.4 billion and $14.9 billion of Ford Credit short-term debt, respectively, carried at cost, which approximates fair value. All other debt is categorized within Level 2 of the fair value hierarchy. (d)These adjustments are related to hedging activity and include discontinued hedging relationship adjustments of $(319) million and $(207) million at December 31, 2025 and June 30, 2026, respectively. The carrying value of hedged debt was $41.7 billion and $44.9 billion at December 31, 2025 and June 30, 2026, respectively. 20 Item 1. Financial Statements (Continued) FORD MOTOR COMPANY AND SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS NOTE 12. DEBT (Continued) U.S. Department of Energy Loan In May 2026, we and the U.S. Department of Energy (“DOE”) entered into a Loan Arrangement and Reimbursement Agreement (the “Ford DOE Loan Agreement”), and we assumed from BlueOval SK, LLC (“BOSK”), our former joint venture, all obligations under a $3.8 billion promissory note payable to the DOE for advances previously made to BOSK. The advances were made for the construction of one of two plants in Kentucky that we acquired from BOSK upon the closing of the BOSK Joint Venture Disposition Agreement (“JVDA”). See Note 16 for more information on the BOSK JVDA. The two Kentucky plants we acquired from BOSK are subject to existing liens in favor of the DOE. Under the terms of the Ford DOE Loan Agreement, the interest rate for the loan is 4.814% per annum. Quarterly interest only payments are required through January 15, 2030, with quarterly principal and interest payments required commencing on April 15, 2030 through July 15, 2040, the final maturity date. The Ford DOE Loan Agreement also contains covenants substantially similar to those in our existing Credit Agreement dated as of December 15, 2006 (as amended and restated, amended, supplemented, or otherwise modified from time to time), including a liquidity covenant requiring that we not permit Available Liquidity (as defined in the Ford DOE Loan Agreement) to be less than $4.0 billion. 21 Item 1. Financial Statements (Continued) FORD MOTOR COMPANY AND SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS NOTE 13. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES In the normal course of business, our operations are exposed to global market risks, including the effect of changes in foreign currency exchange rates, certain commodity prices, and interest rates. To manage these risks, we enter into derivative and nonderivative contracts and have elected to apply hedge accounting to certain of these instruments. Derivatives that are designated in hedging relationships are evaluated for effectiveness using regression analysis at the time they are designated and throughout the hedge period. Some derivatives do not qualify for hedge accounting; for others, we elect not to apply hedge accounting. Income Effect of Derivative Financial Instruments The gains/(losses), by hedge designation, reported in income for the periods ended June 30 were as follows (in millions): Second Quarter First Half Cash flow hedges 2025 2026 2025 2026 Reclassified from AOCI to Cost of sales Foreign currency exchange contracts (a) $ 21 $ 9 $ 95 $ (3) Commodity contracts (b) (1) 59 10 87 Fair value hedges Interest rate contracts Net interest settlements and accruals on hedging instruments (44) (7) (92) (14) Fair value changes on hedging instruments 235 (187) 564 (365) Fair value changes on hedged debt (219) 186 (543) 356 Cross-currency interest rate swap contracts Net interest settlements and accruals on hedging instruments (18) (14) (43) (26) Fair value changes on hedging instruments 358 (37) 504 (240) Fair value changes on hedged debt (339) 29 (475) 233 Derivatives not designated as hedging instruments Foreign currency exchange contracts (c) (69) (2) (9) (36) Cross-currency interest rate swap contracts 246 16 348 (74) Interest rate contracts (18) 1 (63) 92 Commodity contracts 11 (13) 22 28 Total $ 163 $ 40 $ 318 $ 38 __________ (a)For the second quarter and first half of 2025, a $527 million loss and a $605 million loss, respectively, were reported in Other comprehensive income/(loss), net of tax. For the second quarter and first half of 2026, a $93 million gain and a $229 million gain, respectively, were reported in Other comprehensive income/(loss), net of tax (b)For the second quarter and first half of 2025, a $12 million gain and an $8 million gain, respectively, were reported in Other comprehensive income/(loss), net of tax. For the second quarter and first half of 2026, a $38 million loss and a $40 million gain, respectively, were reported in Other comprehensive income/(loss), net of tax. (c)For the second quarter and first half of 2025, a $56 million gain and a $126 million gain, respectively, were reported in Cost of sales, and a $125 million loss and a $135 million loss, respectively, were reported in Other income/(loss), net. For the second quarter and first half of 2026, a $49 million loss and a $112 million loss, respectively, were reported in Cost of sales, and a $47 million gain and a $76 million gain, respectively, were reported in Other income/(loss), net. 22 Item 1. Financial Statements (Continued) FORD MOTOR COMPANY AND SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS NOTE 13. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Continued) Balance Sheet Effect of Derivative Financial Instruments Derivative assets and liabilities are reported on our consolidated balance sheets at fair value and are presented on a gross basis. The notional amounts of the derivative instruments do not necessarily represent amounts exchanged by the parties and are not a direct measure of our financial exposure. We also enter into master agreements with counterparties that may allow for netting of exposures in the event of default or breach of the counterparty agreement. Collateral represents cash received or paid under reciprocal arrangements that we have entered into with our derivative counterparties, which we do not use to offset our derivative assets and liabilities. The fair value of our derivative instruments and the associated notional amounts were as follows (in millions): December 31, 2025 June 30, 2026 Notional Fair Value of Assets Fair Value of Liabilities Notional Fair Value of Assets Fair Value of Liabilities Cash flow hedges Foreign currency exchange contracts $ 17,750 $ 98 $ 114 $ 14,383 $ 268 $ 100 Commodity contracts 940 122 — 1,049 84 15 Fair value hedges Interest rate contracts 18,582 374 220 22,422 170 336 Cross-currency interest rate swap contracts 4,158 383 5 6,330 234 72 Derivatives not designated as hedging instruments Foreign currency exchange contracts 24,934 150 180 21,855 175 248 Cross-currency interest rate swap contracts 7,121 379 28 5,406 204 13 Interest rate contracts 87,293 364 619 84,868 411 432 Commodity contracts 803 56 1 977 53 31 Total derivative financial instruments, gross (a) (b) $ 161,581 $ 1,926 $ 1,167 $ 157,290 $ 1,599 $ 1,247 Current portion $ 634 $ 643 $ 593 $ 788 Non-current portion 1,292 524 1,006 459 Total derivative financial instruments, gross $ 1,926 $ 1,167 $ 1,599 $ 1,247 __________ (a)At December 31, 2025 and June 30, 2026, we held collateral of $5 million and $4 million, respectively, and we posted collateral of $102 million and $90 million, respectively. (b)At December 31, 2025 and June 30, 2026, the fair value of assets and liabilities available for counterparty netting was $814 million and $855 million, respectively. All derivatives are categorized within Level 2 of the fair value hierarchy. Nonderivative Hedging Instruments In the first quarter of 2026, we designated a foreign-denominated debt issuance as a net investment hedge to manage the foreign currency risk of a portion of our investment in a foreign subsidiary with a non-U.S. dollar functional currency. The designated balance of $831 million at June 30, 2026 is reported in Ford Credit debt on our consolidated balance sheets. The cumulative foreign currency remeasurement gains and losses on the designated debt are recorded in Accumulated other comprehensive income/(loss), offsetting translation adjustments on the investment. Upon the sale or substantial liquidation of our investment in the foreign subsidiary, the gains and losses are reclassified to Other income/(loss), net. For the second quarter and first half of 2026, an $8 million gain and a $36 million gain, respectively, were recognized in Foreign currency translation, a component of Other comprehensive income/(loss), net of tax, and no amount was reclassified to income. 23 Item 1. Financial Statements (Continued) FORD MOTOR COMPANY AND SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS NOTE 14. EMPLOYEE SEPARATION ACTIONS AND EXIT AND DISPOSAL ACTIVITIES We generally record costs associated with voluntary separations at the time of employee acceptance. We generally record costs associated with involuntary separation programs when management has approved the plan for separation, the affected employees are identified, and it is unlikely that actions required to complete the separation plan will change significantly. Costs associated with benefits that are contingent on the employee continuing to provide service are accrued over the required service period. Company excluding Ford Credit Employee separation actions and exit and disposal activities include employee separation costs, facility and other asset-related charges (e.g., impairment, accelerated depreciation), dealer and supplier payments, other statutory and contractual obligations, and other expenses, which are recorded in Cost of sales and Selling, administrative, and other expenses. The following table summarizes the activities (primarily hourly and salaried worker separation programs in Europe, which are expected to be substantially complete by the end of 2027) for the periods ended June 30, which are recorded in Other liabilities and deferred revenue (in millions): Second Quarter First Half 2025 2026 2025 2026 Beginning balance $ 999 $ 1,029 $ 1,098 $ 1,457 Changes in accruals (a) 51 27 98 395 Payments (67) (125) (245) (895) Foreign currency translation and other 67 (7) 99 (33) Ending balance $ 1,050 $ 924 $ 1,050 $ 924 __________ (a)Excludes pension costs of $11 million and $14 million in the second quarter of 2025 and 2026, respectively, and $35 million and $82 million in the first half of 2025 and 2026, respectively. We estimate that we will incur total charges in 2026 that range between $500 million and $1 billion related to initiated actions, primarily attributable to employee separations; some charges are related to plans that are subject to negotiations with a works council, union, or other social partner. In addition, we continue to review our global businesses and may take additional restructuring actions where a path to sustained profitability is not feasible. 24 Item 1. Financial Statements (Continued) FORD MOTOR COMPANY AND SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS NOTE 15. ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) The changes in the balances for each component of accumulated other comprehensive income/(loss) attributable to Ford Motor Company for the periods ended June 30 were as follows (in millions): Second Quarter First Half 2025 2026 2025 2026 Foreign currency translation Beginning balance $ (6,378) $ (5,135) $ (6,899) $ (4,878) Gains/(Losses) on foreign currency translation 1,229 106 1,726 (187) Less: Tax/(Tax benefit) (a) (44) (14) (72) (45) Net gains/(losses) on foreign currency translation 1,273 120 1,798 (142) (Gains)/Losses reclassified from AOCI to net income (b) — 2 (4) 7 Other comprehensive income/(loss), net of tax (c) 1,273 122 1,794 (135) Ending balance $ (5,105) $ (5,013) $ (5,105) $ (5,013) Marketable securities Beginning balance $ 17 $ 12 $ (50) $ 81 Gains/(Losses) on available for sale securities 51 (48) 139 (130) Less: Tax/(Tax benefit) 13 (12) 32 (31) Net gains/(losses) on available for sale securities 38 (36) 107 (99) (Gains)/Losses reclassified from AOCI to net income (3) (4) (5) (13) Less: Tax/(Tax benefit) (1) (1) (1) (4) Net (gains)/losses reclassified from AOCI to net income (b) (2) (3) (4) (9) Other comprehensive income/(loss), net of tax 36 (39) 103 (108) Ending balance $ 53 $ (27) $ 53 $ (27) Derivative instruments Beginning balance $ 148 $ 93 $ 277 $ (38) Gains/(Losses) on derivative instruments (515) 65 (597) 258 Less: Tax/(Tax benefit) (120) 12 (139) 62 Net gains/(losses) on derivative instruments (395) 53 (458) 196 (Gains)/Losses reclassified from AOCI to net income (20) (68) (105) (84) Less: Tax/(Tax benefit) (5) (16) (24) (20) Net (gains)/losses reclassified from AOCI to net income (d) (15) (52) (81) (64) Other comprehensive income/(loss), net of tax (410) 1 (539) 132 Ending balance $ (262) $ 94 $ (262) $ 94 Pension and other postretirement benefits Beginning balance $ (2,945) $ (2,850) $ (2,967) $ (2,875) Amortization and recognition of prior service costs/(credits) 30 31 60 61 Less: Tax/(Tax benefit) 8 9 15 16 Net prior service costs/(credits) reclassified from AOCI to net income 22 22 45 45 Translation affect on non-U.S. plans (5) 2 (6) 4 Other comprehensive income/(loss), net of tax 17 24 39 49 Ending balance $ (2,928) $ (2,826) $ (2,928) $ (2,826) Total AOCI ending balance at June 30 $ (8,242) $ (7,772) $ (8,242) $ (7,772) __________ (a)We do not recognize deferred taxes for a majority of the foreign currency translation gains and losses because we do not anticipate reversal in the foreseeable future. However, we have made elections to tax certain non-U.S. operations simultaneously in U.S. tax returns, and have recorded deferred taxes for temporary differences that will reverse, independent of repatriation plans, in U.S. tax returns. Taxes or tax benefits resulting from foreign currency translation of the temporary differences are recorded in Other comprehensive income/(loss), net of tax. (b)Reclassified to Other income/(loss), net. (c)Excludes a $1 million loss related to noncontrolling interests in 2025. (d)Reclassified to Cost of sales. During the next twelve months, we expect to reclassify an existing net gain on cash flow hedges of $184 million (see Note 13). 25 Item 1. Financial Statements (Continued) FORD MOTOR COMPANY AND SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS NOTE 16. VARIABLE INTEREST ENTITIES Certain of our affiliates are VIEs in which we are not the primary beneficiary. Our maximum exposure to any potential losses associated with these unconsolidated affiliates is limited to our equity investments, accounts receivable, loans, and guarantees and was $5.2 billion and $275 million at December 31, 2025 and June 30, 2026, respectively. The guarantee exposure is related to certain debt at our unconsolidated affiliates, which includes amounts outstanding as well as potential future draws up to a maximum amount of $4.9 billion and $0 at December 31, 2025 and June 30, 2026, respectively, related to certain obligations of our VIEs (see Note 17). The decrease in maximum exposure from December 31, 2025 is primarily related to BOSK, which is no longer a VIE of Ford, as discussed below. In July 2022, Ford, SK On Co., Ltd. (“SK On”), and SK Battery America, Inc. (“SKBA,” a wholly owned subsidiary of SK On) completed the creation of BOSK, a 50/50 joint venture formed to build and operate an EV battery plant in Tennessee and two EV battery plants in Kentucky to supply batteries to Ford and Ford affiliates. Upon its formation, BOSK was a VIE of which we were not the primary beneficiary, and we used the equity method of accounting for our investment. In December 2024, BOSK entered into a loan agreement with the DOE of up to $9.6 billion (the “BOSK DOE Loan”). In conjunction with the loan agreement, Ford agreed to guarantee its 50% share of BOSK’s payment obligations under the BOSK DOE Loan. After its draws on the BOSK DOE Loan, BOSK distributed $3.1 billion (including $1.7 billion in the first half of 2025) to Ford as returns of capital. In December 2025, Ford, SK On, SKBA, and BOSK entered into a Joint Venture Disposition Agreement (“JVDA”), and in May 2026, closing on the transactions contemplated by the JVDA occurred. Upon closing, Ford’s membership interest in BOSK was redeemed in full, Ford’s obligation to make further capital contributions to BOSK was terminated, and Ford was released from its 50% guarantee of BOSK’s payment obligations under the BOSK DOE Loan. We also acquired from BOSK assets with a fair value of $0.9 billion, including two plants located in Kentucky and related fixed assets, received cash of $0.1 billion, and assumed certain liabilities, including a $3.8 billion promissory note payable to DOE related to the Kentucky plant for which advances were made under the BOSK DOE Loan. (For more information on Ford’s DOE loan, see Note 12.) The acquisition of the Kentucky plants and the related fixed assets and the assumption of debt represent non-cash investing and financing activities. During the second quarter of 2026, we recognized charges of $2.9 billion in Equity in net income/(loss) of affiliated companies reflecting the amount by which the value of the liabilities assumed exceeded the value of the assets acquired in exchange for the redemption of our interest in BOSK. We also recognized charges of $0.7 billion in Cost of sales related to settlement of pre-existing claims of $0.5 billion and a non-cash write down of fixed assets of $0.2 billion. 26 Item 1. Financial Statements (Continued) FORD MOTOR COMPANY AND SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS NOTE 17. COMMITMENTS AND CONTINGENCIES Commitments and contingencies primarily consist of guarantees and indemnifications, litigation and claims, and warranty and field service actions. Guarantees and Indemnifications Financial Guarantees. Financial guarantees and indemnifications are recorded at fair value at their inception. Subsequent to initial recognition, the guarantee liability is adjusted at each reporting period to reflect the current estimate of expected payments resulting from possible default events over the remaining life of the guarantee. The maximum potential payments for financial guarantees were $5.4 billion and $0.4 billion at December 31, 2025 and June 30, 2026, respectively. See Note 16 for additional information. The carrying value of recorded liabilities related to financial guarantees was $92 million at December 31, 2025 and de minimis at June 30, 2026. Our financial guarantees consist of debt and lease obligations of certain joint ventures, as well as certain financial obligations of outside third parties, including suppliers, to support our business and economic growth. Expiration dates vary through 2034, and guarantees will terminate on payment and/or cancellation of the underlying obligation. A payment by us would be triggered by failure of the joint venture or other third party to fulfill its obligation covered by the guarantee. In some circumstances, we are entitled to recover from a third party amounts paid by us under the guarantee. Non-Financial Guarantees. Non-financial guarantees and indemnifications are recorded at fair value at their inception. We regularly review our performance risk under these arrangements, and in the event it becomes probable we will be required to perform under a guarantee or indemnity, the probable amount of payment is recorded. The maximum potential payments and carrying values of recorded liabilities related to non-financial guarantees were de minimis at both December 31, 2025 and June 30, 2026. In the ordinary course of business, we execute contracts involving indemnifications standard in the industry and indemnifications specific to a transaction, such as the sale of a business. These indemnifications might include and are not limited to claims relating to any of the following: environmental, tax, and shareholder matters; intellectual property rights; power generation contracts; governmental regulations and employment-related matters; dealer, supplier, and other commercial contractual relationships; and financial matters, such as securitizations. Performance under these indemnities generally would be triggered by a breach of contract claim brought by a counterparty, including a joint venture or alliance partner, or a third-party claim. While some of these indemnifications are limited in nature, many of them do not limit potential payment. Therefore, we are unable to estimate a maximum amount of future payments that could result from claims made under these unlimited indemnities. 27 Item 1. Financial Statements (Continued) FORD MOTOR COMPANY AND SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS NOTE 17. COMMITMENTS AND CONTINGENCIES (Continued) Litigation and Claims Various legal actions, proceedings, and claims (generally, “matters”) are pending or may be instituted or asserted against us. These include, but are not limited to, matters arising out of alleged defects in our products; product warranties; governmental regulations relating to safety, emissions, and fuel economy or other matters; government incentives; tax matters, including trade and customs; alleged illegal acts resulting in fines or penalties; financial services; employment-related matters; dealer, supplier, and other contractual relationships; intellectual property rights; environmental matters; shareholder or investor matters; and financial reporting matters. Certain of the pending legal actions are, or purport to be, class actions. Some of the matters involve or may involve claims for compensatory, punitive, or antitrust or other treble damages that are significant, or demands for field service actions, environmental remediation programs, sanctions, loss of government incentives, assessments, or other relief, which, if granted, would require significant expenditures. The extent of our financial exposure to these matters is difficult to estimate. Many matters do not specify a dollar amount for damages, and many others specify only a jurisdictional minimum. To the extent an amount is asserted, our historical experience suggests that in most instances the amount asserted is not a reliable indicator of the ultimate outcome. We accrue for matters when losses are deemed probable and reasonably estimable. In evaluating matters for accrual and disclosure purposes, we take into consideration factors such as our historical experience with matters of a similar nature, the specific facts and circumstances asserted, the likelihood that we will prevail, and the severity of any potential loss. We reevaluate and update our accruals as matters progress over time. For the majority of matters, which generally arise out of alleged defects in our products, we establish an accrual based on our extensive historical experience with similar matters. We do not believe there is a reasonably possible outcome materially in excess of our accrual for these matters. For the remaining matters, where our historical experience with similar matters is of more limited value (i.e., “non-pattern matters”), we evaluate the matters primarily based on the individual facts and circumstances. For non-pattern matters, we evaluate whether there is a reasonable possibility of a material loss in excess of any accrual that can be estimated. Our estimate of reasonably possible loss in excess of our accruals for all material matters currently reflects indirect tax and regulatory matters, for which we estimate the aggregate risk to be a range of up to about $0.4 billion. As noted, the litigation process is subject to many uncertainties, and the outcome of individual matters is not predictable with assurance. Our assessments are based on our knowledge and experience, but the ultimate outcome of any matter could require payment substantially in excess of the amount that we have accrued and/or disclosed. 28 Item 1. Financial Statements (Continued) FORD MOTOR COMPANY AND SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS NOTE 17. COMMITMENTS AND CONTINGENCIES (Continued) Warranty and Field Service Actions We accrue the estimated cost of both base warranty coverages and field service actions at the time of sale. We establish our estimate of base warranty obligations using a patterned estimation model, using historical information regarding the nature, frequency, and average cost of claims for each vehicle line by model year. We establish our estimates of field service action obligations using a patterned estimation model, using historical information regarding the nature, frequency, severity, and average cost of claims for each model year. In addition, from time to time, we issue extended warranties at our expense, the estimated cost of which is accrued at the time of issuance. Warranty and field service action obligations are reported in Other liabilities and deferred revenue. We reevaluate the adequacy of our accruals on a regular basis. We recognize the benefit from a recovery of the costs associated with our warranty and field service actions when specifics of the recovery have been agreed with our supplier and the amount of recovery is virtually certain. Recoveries are reported in Trade and other receivables, net and Other assets. The estimate of our future warranty and field service action costs, net of estimated supplier recoveries, for the periods ended June 30 was as follows (in millions): First Half 2025 2026 Beginning balance $ 14,032 $ 17,190 Payments made during the period (2,801) (3,031) Changes in accrual related to warranties issued during the period 3,351 2,939 Changes in accrual related to pre-existing warranties 1,586 475 Foreign currency translation and other 69 (2) Ending balance $ 16,237 $ 17,571 Changes to our estimated costs are reported as changes in accrual related to pre-existing warranties in the table above. In addition, our estimate of reasonably possible costs in excess of our accruals for material field service actions and customer satisfaction actions is a range of up to about $2.0 billion in the aggregate. 29 Item 1. Financial Statements (Continued) FORD MOTOR COMPANY AND SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS NOTE 18. SEGMENT INFORMATION We report segment information consistent with the way our chief operating decision maker (“CODM”), our President and Chief Executive Officer, evaluates the operating results and performance of the Company. Accordingly, we analyze the results of our business through the following segments: Ford Blue, Ford Model e, Ford Pro, and Ford Credit. Below is a description of our reportable segments and other activities. Ford Blue Segment Ford Blue primarily includes the sale of Ford and Lincoln internal combustion engine (“ICE”) and hybrid (excluding extended range electric vehicles (“EREVs”)) vehicles, service parts, accessories, and digital services for retail customers, together with the associated costs of development, manufacture, and distribution of the vehicles, parts, accessories, and services. This segment focuses on developing Ford and Lincoln ICE and hybrid vehicles. Additionally, this segment provides hardware engineering and manufacturing capabilities to Ford Model e and manufactures vehicles on behalf of Ford Pro and, in certain cases, Ford Model e. Ford Blue also includes: •All sales for markets not presently in scope for Ford Model e or Ford Pro (as further described below) •In markets outside of the United States and Canada, sales to commercial, government, and rental customers of ICE and hybrid vehicles not considered core to Ford Pro •Sales of EVs, including EREVs, by our unconsolidated affiliates in China •All sales of vehicles manufactured and sold to other OEMs Ford Model e Segment Ford Model e primarily includes the sale of our EVs (including EREVs), service parts, accessories, and digital services for retail customers, together with the associated costs of development, manufacture, and distribution of the vehicles, parts, accessories, and services. This segment focuses on developing EV and digital vehicle technologies, as well as software development. Additionally, this segment provides software and connected vehicle technologies on behalf of the enterprise and manufactures certain EVs, including for Ford Pro. Ford Model e operates in North America, Europe, and China. Ford Model e also includes EV and related sales not considered core to Ford Pro to commercial, government, and rental customers in Europe, China, and Mexico. Ford Model e also includes our battery energy storage systems business, including the associated costs of development, manufacture, sales, and distribution of these systems and services. Ford Pro Segment Ford Pro primarily includes the sale of Ford and Lincoln vehicles, service parts, accessories, and services for commercial, government, and rental customers. Included in this segment are sales of all core Ford Pro vehicles, such as Super Duty and the Transit range of vans in North America and Europe and all sales of Ranger in Europe. In the United States and Canada, Ford Pro also includes all vehicle sales to commercial, government, and rental customers. This segment focuses on selling ICE, hybrid, and electric vehicles and providing digital and physical services to optimize and maintain fleets, including telematics and EV charging solutions. This segment reflects external sales of vehicles produced by Ford Blue and Ford Model e, and the costs (including intersegment markup) associated with acquiring vehicles for sale and providing services are reflected in this segment. Ford Pro operates in North America and Europe. Ford Credit Segment The Ford Credit segment is comprised of the Ford Credit business on a consolidated basis, which is primarily vehicle-related financing and leasing activities. 30 Item 1. Financial Statements (Continued) FORD MOTOR COMPANY AND SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS NOTE 18. SEGMENT INFORMATION (Continued) Corporate Other Corporate Other primarily includes corporate governance expenses, past service pension and OPEB income and expense, interest income (excluding Ford Credit interest income and interest earned on our extended service contract portfolio) and realized and unrealized gains and losses on our cash, cash equivalents, and marketable securities, and foreign exchange derivatives gains and losses associated with intercompany lending. Corporate governance expenses are primarily administrative, delivering benefit on behalf of the global enterprise, that are not allocated to operating segments. These include expenses related to setting and directing global policy, providing oversight and stewardship, and promoting the Company’s interests. Corporate Other assets include: cash, cash equivalents, and marketable securities; tax-related assets; defined benefit pension plan net assets; and other assets managed centrally. Interest on Debt Interest on Debt is presented as a separate reconciling item and consists of interest expense on Company debt excluding Ford Credit. Special Items Special items are presented as a separate reconciling item. They consist of (i) pension and OPEB remeasurement gains and losses, (ii) significant personnel expenses, supplier- and dealer-related costs, and facility-related charges stemming from our efforts to match production capacity and cost structure to market demand and changing model mix, and (iii) other items that we do not generally consider to be indicative of earnings from ongoing operating activities. Our management excludes these items from its review of the results of the operating segments for purposes of measuring segment profitability and allocating resources. We also report these special items separately to help investors track amounts related to these activities and to allow investors analyzing our results to identify certain infrequent significant items that they may wish to exclude when analyzing operating results. CODM Evaluation of the Business When we report segment earnings before interest and taxes (“Segment EBIT”) for each of the Ford Blue, Ford Model e, and Ford Pro segments, it consists of the earnings for the particular segment and does not include interest and taxes. Ford Credit segment earnings include interest and exclude taxes (“Segment EBT”). Each segment’s EBIT/EBT also excludes the results reported in Corporate Other and Special Items. For the Ford Blue, Ford Model e, and Ford Pro segments, our CODM reviews Segment EBIT and Segment EBIT margin, as well as market share, revenue, and wholesale volume to evaluate performance and allocate resources, predominately in the budgeting, planning, and forecasting processes. For Segment EBIT, our CODM reviews the year-over-year change in EBIT, sequential change in EBIT, and change in EBIT from internal forecasts/budgets. Revenue and certain of our costs, such as material costs, generally vary directly with changes in volume and mix of vehicles. As a result, our CODM reviews the effect of changes in volume and mix, exchange, and net pricing and cost categories (at constant volume and mix and/or exchange) on EBIT. For the Ford Credit segment, our CODM reviews Segment EBT to evaluate performance and allocate resources. Expense information is provided to and reviewed by the CODM on a consolidated basis to evaluate cost efficiency and company level performance. 31 Item 1. Financial Statements (Continued) FORD MOTOR COMPANY AND SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS NOTE 18. SEGMENT INFORMATION (Continued) Segment Revenue, Cost, and Asset Principles for Ford Blue, Ford Model e, and Ford Pro External vehicle and digital services revenue is generally vehicle-specific and included in the segment responsible for the external vehicle sale. A majority of parts and accessories revenue and cost is attributed to customer sales channels or vehicle lines based on recent end-customer sales and is included in the respective segment. In the normal course of business, Ford Blue, Ford Model e, and Ford Pro transact between segments and cooperate to leverage synergies, including developing and manufacturing vehicles on behalf of another segment. When one segment produces a vehicle that is sold externally by another segment, an intersegment transaction occurs. The producing segment will report intersegment revenue to recoup the costs associated with the unit produced. This includes material cost, labor and overhead (including depreciation and amortization), inbound freight, and an intersegment markup. The intersegment markup amount is set to deliver a competitive return to the producing segment for its manufacturing and distribution service. Costs are reflected in the associated segment externally reporting the vehicle sale, as detailed in the table below: Income Statement Elements Examples Segment Reporting Costs specific to a particular vehicle Bill of material cost and initial warranty accrual Reported in the segment externally selling the vehicle Costs identifiable by product line Manufacturing and logistics costs, depreciation & amortization expense, direct research & development costs Typically identifiable to the product line or production location. Reported in the segment externally selling the vehicle, based on relative volume Shared costs Selling, general & administrative expense, and indirect/cross product line research & development costs Typically shared across all segments, generally based on relative volume. Certain costs clearly linked to a segment are reported in the specific segment Intersegment markup costs for intersegment vehicle transactions Contract manufacturing and distribution fees Reported in the segment externally selling the vehicle, for each applicable vehicle transaction Assets are reported in each segment, aligned to the appropriate operational responsibility. Manufacturing assets, e.g., our plants and the machinery and equipment therein, are included in our Ford Blue and Ford Model e segments. Manufacturing assets producing only, or primarily, EVs and related components are reflected in Ford Model e. Manufacturing assets that support the production of ICE and hybrid vehicles, including those producing ICE and electric vehicles in the same facility, are included in Ford Blue. Company-owned vendor tooling dedicated to producing EV parts is reported in Ford Model e. Purchased regulatory credit compliance assets are reported in Ford Blue. There are no Ford manufacturing, Company-owned vendor tooling, or regulatory credit compliance assets reported in Ford Pro. Depreciation and amortization expense is reflected on the basis of production volume. Regulatory compliance credit expense is allocated by vehicle line between the Ford Blue and Ford Pro segments. Regardless of the segment reporting the asset, the related expenses are reported in the segment that reports the external vehicle sale. Equity in net income/(loss) of affiliated companies is included in Income/(Loss) before income taxes, based primarily on which segment the entity supports or has the majority of the entity’s purchases or sales. The table below shows the segment reporting for our most significant unconsolidated entities: Ford Blue Ford Model e Ford Pro ∘ Changan Ford Automobile Corporation, Ltd. (“CAF”) ∘ None ∘ Ford Otomotiv Sanayi Anonim Sirketi (“Ford Otosan”) ∘ Jiangling Motors Corporation, Ltd. (“JMC”) ∘ AutoAlliance (Thailand) Co., Ltd. (“AAT”) 32 Item 1. Financial Statements (Continued) FORD MOTOR COMPANY AND SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS NOTE 18. 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 Second Quarter 2025 External revenues $ 25,784 $ 2,357 $ 18,797 $ 3,241 $ 5 $ 50,184 Intersegment revenues (b) 13,527 192 — — (13,719) — Total revenues $ 39,311 $ 2,549 $ 18,797 $ 3,241 $ (13,714) $ 50,184 Other segment items (c) 38,650 3,878 16,479 2,596 Segment EBIT/EBT $ 661 $ (1,329) $ 2,318 $ 645 $ 2,295 Reconciliation of Segment EBIT/EBT Unallocated amounts: Corporate Other (155) Interest on debt (excludes $1,759 of Ford Credit interest on debt) (297) Special items (d) (1,302) Income/(Loss) before income taxes $ 541 Other Segment Disclosures Depreciation and tooling amortization $ 764 $ 154 $ 349 $ 615 $ 17 $ 1,899 Investment-related interest income 50 1 15 91 211 368 Equity in net income/(loss) of affiliated companies 52 (17) 96 13 (394) (250) Cash outflow for capital spending 1,063 952 16 34 23 2,088 Total assets 64,141 16,304 4,566 157,804 49,910 292,725 Second Quarter 2026 External revenues $ 26,068 $ 1,026 $ 17,790 $ 3,405 $ 7 $ 48,296 Intersegment revenues (b) 11,453 103 — — (11,556) — Total revenues $ 37,521 $ 1,129 $ 17,790 $ 3,405 $ (11,549) $ 48,296 Other segment items (c) 36,386 2,048 16,072 2,648 Segment EBIT/EBT $ 1,135 $ (919) $ 1,718 $ 757 $ 2,691 Reconciliation of Segment EBIT/EBT Unallocated amounts: Corporate Other (188) Interest on debt (excludes $1,693 of Ford Credit interest on debt) (357) Special items (e) (4,179) Income/(Loss) before income taxes $ (2,033) Other Segment Disclosures Depreciation and tooling amortization $ 753 $ 48 $ 337 $ 705 $ 22 $ 1,865 Investment-related interest income 52 — 18 73 150 293 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 33 Item 1. Financial Statements (Continued) FORD MOTOR COMPANY AND SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS NOTE 18. 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) (585) 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) (707) 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. Eliminations include intersegment transactions occurring in the ordinary course of business. (b)Intersegment revenues only reflect finished vehicle transactions between Ford Blue, Ford Model e, and Ford Pro where there is an intersegment markup and are recognized at the time of the intersegment transaction. (c)Other segment items for the Ford Blue, Ford Model e, and Ford Pro segments primarily includes material costs, manufacturing costs, warranty coverages and field service action costs, freight and distribution costs, vehicle and software engineering costs, spending-related costs, advertising and sales promotions costs, and administrative, information technology, and selling costs. Other segment items for the Ford Credit segment primarily includes interest expense and depreciation. (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. 34