Ford (F) reported Q2 2025 earnings on Wednesday, beating high and backside line expectations. Regardless of the income progress, Ford is warning earnings will take successful because of Trump’s tariffs. We will even study Ford’s plans to construct “breakthrough” EVs within the US very quickly.
Ford Q2 2025 earnings preview
After suspending full-year steerage in Might, Ford warned that it anticipated to take a $2.5 billion hit from Trump’s auto tariffs.
On condition that Ford builds extra autos within the US than any main automaker, outdoors of Tesla, it’s anticipated to see much less of an impression from the 25% tariff on imports.
Ford imports nearly 21% of the autos it sells within the US. Compared, crosstown rival GM imports round 46%. GM introduced final week that the tariffs value it an additional $1.1 billion within the second quarter. For the total 12 months, GM nonetheless expects a $4 billion to $5 billion impression.
Not like GM, Ford breaks down earnings into three models, together with Mannequin e, its electrical car enterprise. Ford’s Mannequin e posted an almost $1 billion loss within the first quarter, however new EVs rolling out in Europe boosted income.
Though Ford’s car gross sales rose 14% to over 612,000 in Q2, EV gross sales dropped 31% to only 16,438. Ford spokesperson Martin Gunsberg informed Elecrektrek that each the Mustang Mach-E and F-150 Lightning had been impacted by the changeover to the 2025 mannequin 12 months and the Mach-E recall.
Based on EstimizeWall Road expects Ford to submit second-quarter EPS of $0.33 on income of $43.75 billion.
Bettering prices and extra EV information to return
Ford beat earnings estimates posting second quarter income a report $50.02 billion in income, up 5% YOY and an adjusted EPS of $0.37.
- Ford Q2 2025 Income: $50.02 billion vs $43.75 billion anticipated
- Ford Q2 2025 adjusted EPS: $0.37 vs $0.33 anticipated
Regardless of the upper income, Ford posted a $36 million web loss, which was attributable to a “area service motion and bills associated to a beforehand introduced cancellation of an electrical car program.” It additionally incurred an $800 million loss attributable to tariffs within the quarter.
Ford Professional continues to drive each high and bottom-line progress with high-margin income streams from software program and providers.
Its Mannequin e EV enterprise, alternatively, misplaced one other $1.3 billion within the second quarter. By way of the primary half of the 12 months, Mannequin e has now misplaced $2.2 billion.
Ford attributed the upper losses to tariff-related prices and investments in launching its new EV battery plant in Michigan.
After launching new EVs in Europe, just like the Capri and electrical Explorer, Mannequin e’s income doubled to $2.4 billion. Mustang Mach-E and F-150 Lightning materials prices additionally improved within the quarter.
Ford now expects full-year adjusted EBIT of $6.5 billion to $7.5 billion, together with a $2 billion hit from tariffs. That’s down from the $7 billion to $8.5 billion it beforehand forecasted.
The corporate will partially offset a $3 billion gross adjusted EBIT impression, partially offset by $1 billion in restoration actions.
CEO Jim Farley introduced an occasion on August 11 in Kentucky, the place Ford will share extra particulars about its “plans to design and construct breakthrough electrical autos in America.”
Farley mentioned on the corporate’s earnings name that Ford will not be trying to compete with South Korean and Japanese manufacturers within the mass market EV house, however slightly what the corporate is understood for greatest — vehicles and SUVs. The corporate will make the most of LFP batteries manufactured in Michigan to scale back prices.
The primary electrical mannequin constructed on Ford’s new platform is predicted to be a mid-size pickup truck, set to reach in 2027.
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