TLDR
- Ford posts record revenue but tariffs drive Q2 loss and stock dip.
- Ford’s EV bets grow, but tariffs and costs dent Model e earnings.
- Ford Pro powers profits; tariff woes drag down overall performance.
- Ford’s strong cash flow softens the blow of a $36M quarterly loss.
- Tariff hits stall Ford’s Q2 despite gains in Pro and Credit units.
Ford Motor Company’s stock ended July 30 down 1.90% at $10.87 and dropped another 3.49% after hours. The decline followed a mixed second-quarter earnings report that included record revenue but also a net loss.
Net Tariff Costs Lead to Earnings Miss Despite Revenue Record
Ford reported second-quarter revenue of $50.2 billion, marking a 5% increase year-over-year and outpacing wholesale growth. However, the company recorded a net loss of $36 million, largely due to one-time charges and tariff-related impacts. Adjusted EBIT reached $2.1 billion, though $0.8 billion in adverse net tariff costs offset broader gains.
Ford Motor Co., $F, Q2-25 Results:
📊 Adj. EPS: $0.37 🟢
💰 Revenue: $50.2B 🟢
📈 Net Loss: $36M
🔎 Despite record revenue of $50.2B, Ford posted a net loss due to $1.3B in special items and tariff impacts. pic.twitter.com/tK8KHP8zp8— EarningsTime (@Earnings_Time) July 30, 2025
The company cited expenses from a discontinued EV program and a field service action as key reasons for the loss. In contrast, cash from operations stood strong at $6.3 billion, while adjusted free cash flow totaled $2.8 billion. With $28.4 billion in cash and $46.6 billion in liquidity, Ford maintained a solid balance sheet.
Ford’s CFO confirmed ongoing cost improvements despite the tariff pressures, highlighting continued efforts to close material cost gaps. The company improved margins in key business units and committed to ongoing strategic investments. Management also declared a 15-cent regular dividend for the third quarter.
Ford Pro Drives Profits, Model e Faces Tariff Headwinds
Ford Pro generated $2.3 billion in EBIT, achieving a 12.3% margin on $18.8 billion in revenue, driven by software and services growth. Paid subscriptions in Ford Pro climbed 24% year-over-year to 757,000, reflecting rising demand for its commercial offerings. The segment continues to benefit from its distinct market position.
Ford Model e posted a $1.3 billion EBIT loss, a $179 million increase from last year’s second quarter. Revenue in the EV segment doubled to $2.4 billion, boosted by strategic investments and product expansion. However, tariff impacts and costs from its new Michigan battery plant dragged down results.
Despite the losses, Ford emphasized operating leverage gains in its first-generation EVs like the Mustang Mach-E and F-150 Lightning. Segment results would have improved without the steep tariff costs impacting battery and material sourcing. Ford remains focused on refining costs and ramping next-gen EV production.
Ford Blue and Ford Credit Add Strength, Full-Year Outlook Reinstated
Ford Blue posted $661 million in EBIT as it gained market share and improved net pricing. But a 3% decline in segment revenue and last year’s favorable comparison created a year-over-year dip. Tariff headwinds also reduced net gains despite operational efficiency improvements.
Ford Credit saw a strong quarter with earnings before taxes of $645 million, marking an 88% increase year-over-year. The division contributed solidly to Ford’s overall performance and helped offset manufacturing and EV pressures. Ford noted this as evidence of growing resilience in its financial services arm.
The automaker reinstated full-year 2025 guidance with adjusted EBIT between $6.5 billion and $7.5 billion. Expected adjusted free cash flow is set between $3.5 billion and $4.5 billion, with $9 billion in capital expenditures. Tariff impacts are expected to remain at around $2 billion, partially offset by $1 billion in recovery actions.
