Ford Motor Company reported better-than-expected second-quarter revenue and reinstated its full-year guidance despite a significant tariff hit. The company expects an estimated net $2 billion impact from tariffs, with adjusted earnings before interest and taxes of $6.5 billion to $7.5 billion, lower than the pre-tariff range.
The new guidance includes a 3% decline in revenue for Ford’s traditional “Blue” operations and a loss of $1.33 billion for its electric vehicle business. However, CEO Jim Farley said that the company is adapting its EV strategy amid changing policies under the Trump administration, and expects to outpace competitors who are already fully loaded with their EVs.
Ford’s stock dropped over 3% during after-hours trading, but the company remains committed to supporting US manufacturing and working with the Trump administration. CFO Sherry House said that Ford has been in “near-daily communications” with the administration and is seeking constructive conversations on steel and aluminum tariffs.
The new guidance also includes capital spending of around $9 billion and expects free cash flow of $3.5 billion to $4.5 billion, in line with prior guidance. Despite the tariff impact, Ford’s estimated tariff-related impacts are notably less than those of its crosstown rival General Motors, which predicts a $4 billion to $5 billion hit.
Ford’s strong sales for the second quarter totaled 612,095 vehicles, a 14.2% increase from a year ago, with electrified vehicle sales up 6.6%. The company is working to reduce the cost of recalls and improve its EV strategy in response to changing policies under the Trump administration.
Source: https://www.cnbc.com/2025/07/30/ford-motor-f-earnings-q2-2025.html