Ford (F) reported Q2 2025 earnings on Wednesday, beating high and backside line expectations. Regardless of the income progress, Ford is warning income will take successful because of Trump’s tariffs. We can even study Ford’s plans to construct “breakthrough” EVs within the US very quickly.
Ford Q2 2025 earnings preview
After suspending full-year steering in Might, Ford warned that it anticipated to take a $2.5 billion hit from Trump’s auto tariffs.
Provided that Ford builds extra automobiles within the US than any main automaker, exterior of Tesla, it’s anticipated to see much less of an impression from the 25% tariff on imports.
Ford imports nearly 21% of the automobiles it sells within the US. As 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.
In contrast to GM, Ford breaks down earnings into three models, together with Mannequin e, its electrical automobile enterprise. Ford’s Mannequin e posted a virtually $1 billion loss within the first quarter, however new EVs rolling out in Europe boosted income.
Though Ford’s automobile gross sales rose 14% to over 612,000 in Q2, EV gross sales dropped 31% to simply 16,438. Ford spokesperson Martin Gunsberg instructed Electrek that each the Mustang Mach-E and F-150 Lightning have been impacted by the changeover to the 2025 mannequin 12 months and the Mach-E recall.
In accordance with Estimize, Wall Road expects Ford to publish second-quarter EPS of $0.33 on income of $43.75 billion.
Enhancing prices and extra EV information to come back
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 as a consequence of a “discipline service motion and bills associated to a beforehand introduced cancellation of an electrical automobile program.” It additionally incurred an $800 million loss as a consequence of 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. Via 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 automobiles in America.”
Farley mentioned on the corporate’s earnings name that Ford shouldn’t 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 — vans 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 anticipated to be a mid-size pickup truck, set to reach in 2027.
Examine again for more information from Ford’s Q2 2025 earnings name. We are going to preserve you up to date with the most recent.
