Ford Rated Top 2026 Buy as SUV Sales Jump 33% and Mustang Up 54%
Bank of America named Ford a top auto stock for 2026, citing regulatory rollbacks that favor high-margin trucks and SUVs. Ford’s February EV sales plunged 38% year-over-year while combustion vehicle volume dipped 0.1%, with Explorer up 33%, Expedition 26%, Mustang 54%; Q4 revenue was $45.9B (-5%) and EPS $0.13.
1. BofA Buy Recommendation for Ford
Bank of America named Ford among its top auto stocks for 2026 based on expectations that regulatory rollbacks on greenhouse gas and fuel economy standards will enable stronger profitability from high-margin trucks and SUVs.
2. February 2026 Sales Breakdown
Ford’s total February sales fell 5.5% year-over-year, driven by a 38% decline in EV unit sales to 14,132, while combustion engine vehicle deliveries dipped only 0.1%. SUV models Explorer and Expedition posted gains of 33% and 26% respectively, and Mustang sales surged 54%, with fewer than 10% of total units being electric vehicles.
3. Q4 2025 Financial Results
In the fourth quarter of 2025, Ford reported $45.9 billion in revenue, down 5% year-over-year, and non-GAAP EPS of $0.13, missing consensus by $0.06. The company generated $3.5 billion in adjusted free cash flow for the full year and ended 2025 with $29 billion in cash.
4. Impact of Regulatory Shift
The rollback of CAFE and GHG standards reduces compliance costs and penalties, allowing Ford to shift production focus back to its most profitable trucks and SUVs, while scaling back less profitable electric vehicle investments.