Ford (F) announced a strong first-quarter performance, exceeding market predictions on both revenue and earnings per share. Despite President Trump’s imposition of auto tariffs, Ford has announced that it will suspend its full-year guidance. Ford’s first-quarter 2025 earnings: A detailed analysis.
Ford Q1 2025 earnings preview
As General Motors trimmed its full-year financial guidance last week, the market is eagerly awaiting Ford’s potential response.
Ford’s earlier 2025 forecast envisioned earnings before interest and taxes (EBIT) within the range of $7 billion to $8.5 billion, alongside capital expenditures projected at between $8 billion and $9 billion.
The gravest threat currently facing the global economy stems from Trump’s latest protectionist move: the imposition of a 25% tariff on imported vehicles and their constituent parts, effectively stifling international trade. As Ford manufactures a greater proportion of vehicles domestically compared to many other major automakers, excluding Tesla, it’s unlikely to witness a significant impact.
Ford CEO Jim Farley described the scenario as “a possibility” during an interview last week, noting that the company has a “completely different footprint” and unique leverage when it comes to tariffs.
Ford imports roughly 21 percent of the automobiles it sells within the United States, whereas General Motors imports approximately 46 percent. Wall Street anticipates Ford’s first-quarter earnings per share (EPS) to come in at $0.00, alongside revenues of approximately $38.02 billion.
The corporation reviews its quarterly earnings across all three business segments: Ford Blue (gasoline-powered vehicles), Model e (electric vehicles), and Ford Pro (industrial and software solutions).
During the fourth quarter, Ford’s electric vehicle division, Model e, suffered a further loss of $1.4 billion, while both Profit and Blue reported an adjusted earnings before interest and taxes (EBIT) of $1.6 billion.
Monetary breakdown
Ford exceeded Wall Street expectations, announcing a robust first-quarter profit of $40.7 billion, accompanied by an adjusted earnings per share (EPS) of 0.49.
- Revenue of $40.7 billion exceeds expectations by $2.68 billion, a significant deviation from the projected $38.02 billion.
- : $0.49 vs $0.0 anticipated.
The corporation reported an adjusted EBIT of $1 billion, a significant 63% decrease compared to the first quarter of 2024. Ford reported a significant $200 million impairment to its first-quarter EBIT, largely attributed to the increased costs stemming from tariffs, particularly within the Ford Blue and Ford Professional segments.
Ford’s Professional segment generated a strong EBIT of $1.3 billion, while the Blue division delivered a respectable $96 million, although the Mannequin e segment struggled with an EBIT loss of $849 million.
The corporation focuses intently on enhancing gross margin performance while “practicing a disciplined approach to investments in battery infrastructure and next-generation products.” Despite still reporting a nearly $1 billion loss, this represents a significant $500 million improvement from Q1 2024.
Ford attributed a surge in Mustang Mach-E sales to the introduction of new electric models in Europe, including the Explorer and Capri.
The corporation launched its “Energy Promise” initiative, offering a complimentary dwelling charger alongside multiple incentives, thereby fueling demand in the US market.
Ford has temporarily suspended its guidance on full-year adjusted earnings before interest and taxes (EBIT) due to ongoing uncertainty surrounding tariffs, having initially forecast a range of $7 billion to $8.5 billion.
Ford estimates the full-year gross impact of tariffs to be approximately $2.5 billion. The company anticipates an adverse impact on its earnings before interest and taxes, after adjusting for tariffs, of approximately $1.5 billion over the 12-month period ending in 2025.
Ford expanded its “Built for America” marketing initiative last week. Get exclusive deals on the latest 2024 and 2025 fashion collections at discounted prices for workers – this limited-time offer ends on July 4, so don’t miss out!
Ford’s first-quarter earnings conference call will provide additional insight into the company’s performance and strategy. The call is scheduled to take place on April 25th, at 9:00 AM ET, where CEO Jim Farley and CFO John Lawler will discuss financial results and answer questions from investors. Ford is set to host its annual meeting on Thursday, May 8, where further details on its electric vehicle plans are expected to be revealed, as well as strategies for navigating the newly implemented tariffs.
