Ford Motor (F) reported better-than-expected second-quarter revenue and reinstated its full-year outlook on Wednesday, which had previously been withdrawn in May due to auto tariffs imposed by the Trump administration. The updated guidance includes a net $2 billion impact from tariffs.
The company had originally forecast a $2.5 billion tariff burden this year but anticipated mitigating $1 billion of that. Its revised estimate reflects a total $3 billion impact, with the same $1 billion in offsets.
Second-quarter total revenue, including Ford’s finance arm, came in at $50.2 billion, a 5% rise from $47.81 billion a year earlier. Automotive revenue hit $46.94 billion, beating the $43.21 billion expected, while adjusted earnings before interest and taxes (EBIT) totaled $2.14 billion, down from $2.76 billion in Q2 2024 but ahead of StreetAccount’s $1.89 billion estimate. The EBIT total includes $800 million in adverse tariff-related impacts.
Ford reported adjusted EPS of 37 cents, though it wasn’t immediately clear if this was directly comparable to the 33 cents expected by analysts. The company also posted a net loss of $36 million, attributed to “special charges” linked to a major recall and the cancellation of an electric vehicle program. That compares to net income of $1.83 billion in the same period last year.
This month, Ford issued a recall of more than 694,000 SUVs, costing an estimated $570 million, which is reflected in those special charges.
“We are not satisfied with the current level of recalls or the number of vehicles impacted. We are working to reduce the cost of these recalls,” COO Kumar Galhotra said on a call with analysts.
Despite the challenges, Ford reinstated its full-year outlook with adjusted EBIT of $6.5 billion to $7.5 billion, below the pre-tariff February range of $7 billion to $8.5 billion. Adjusted free cash flow is projected at $3.5 billion to $4.5 billion, consistent with prior guidance. Capital expenditures are expected at about $9 billion, up from an earlier range of $8 billion to $9 billion.
“We make about 80% of our vehicles [in the U.S.], but we still import parts from all over the world, and that’s the opportunity to work with the administration. And they are very committed to supporting companies like Ford that have committed to the U.S. manufacturing base,” CEO Jim Farley said on CNBC’s Closing Bell: Overtime.
CFO Sherry House noted that Ford has been in “near-daily communications” with the Trump administration, with steel and aluminum tariffs being a key focus. She said retail prices have climbed about 1%, and she expects that to hold steady through the rest of the year.
While Trump’s 25% tariffs on imported vehicles and parts remain in effect, his administration has offered some relief—such as country-specific deals, partial reimbursements, and reduced “stacking” of tariffs. Farley said these changes were helpful but “more actions were needed.”
Ford’s tariff burden remains lower than GM’s, which recently reiterated a $4 billion to $5 billion hit for 2025, including $1.1 billion in Q2 alone.
By segment, Ford’s traditional “Blue” business saw a 3% revenue decline, with EBIT of $661 million, down from $1.17 billion last year. House called Ford’s “Pro” commercial unit the company’s “growth engine,” as it saw an 11% revenue increase.
Ford’s “Model e” electric vehicle division posted a $1.33 billion loss, up from a $1.15 billion loss in Q2 2024.
Q2 2025 vehicle sales totaled 612,095, a 14.2% year-over-year increase. Electrified vehicle sales rose 6.6% to 82,886 units, with hybrid sales up 23.5% and pure EVs down 31.4%.
Executives said Ford is adapting its EV strategy as policies shift under the Trump administration. Tax credits for new and used EVs will end after Sept. 30, and the EPA plans to roll back some emissions standards.
“We are out of sync, in a good way, with our competitors who now fully loaded with all their EVs, and they’ll have to commit to them,” Farley told analysts.
Ford shares are up about 9% year-to-date, as of Wednesday’s close, though they fell more than 3% in after-hours trading.
Pump Radar
Stock Alerts