Ford Motor reported second-quarter revenue that exceeded expectations and reinstated its full-year guidance, despite ongoing challenges from tariffs imposed by the U.S. government. The automaker had suspended its guidance in May due to President Donald Trump’s tariffs on imported vehicles and auto parts, which were expected to impact earnings significantly.
Ford now estimates a total $3 billion hit from tariffs in 2025 but expects to offset $1 billion of that through mitigation efforts, an increase from its previous $2.5 billion impact forecast. The company’s stock dropped more than 3% in after-hours trading following the earnings announcement.
Chief Financial Officer Sherry House revealed that Ford has maintained nearly daily communications with the Trump administration, focusing on tariff-related issues, particularly steel and aluminum. Ford has seen about a 1% price increase in its retail segment, which House expects to continue through the year.
The company’s updated guidance projects adjusted earnings before interest and taxes (EBIT) between $6.5 billion and $7.5 billion, down from the pre-tariff February forecast of $7 billion to $8.5 billion. Adjusted free cash flow is expected to range from $3.5 billion to $4.5 billion, consistent with previous estimates. Capital spending is forecasted at about $9 billion, slightly above earlier projections.
CEO Jim Farley highlighted that while Ford manufactures about 80% of its vehicles in the U.S., it still imports parts globally, underscoring the importance of working with the administration. Ford faces ongoing tariffs, despite some relief measures and country-specific agreements.
In the second quarter, Ford reported total revenue of $50.2 billion, up 5% from $47.81 billion a year earlier. Automotive revenue was $46.94 billion, beating analyst expectations. Adjusted EBIT came in at $2.14 billion, including an $800 million tariff-related impact, above the $1.89 billion forecast.
Ford posted a net loss of $36 million due to $570 million in special charges tied to a massive recall of over 694,000 SUVs and the cancellation of an electric vehicle program. The company’s traditional operations saw a 3% revenue decline, while its commercial “Pro” segment grew 11%.
Ford’s electric vehicle division reported a loss of $1.33 billion, wider than the previous year’s $1.15 billion loss. Sales for the quarter reached 612,095 vehicles, a 14.2% increase, with electrified vehicle sales up 6.6%. Pure EV sales fell 31.4%, but hybrids increased 23.5%.
Executives noted ongoing EV strategy adjustments amid shifting regulations, including the impending expiration of EV tax credits and potential rollback of emissions standards. Ford’s stock has gained about 9% year to date.
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