Ford Motor Company reported first-quarter earnings that exceeded Wall Street’s expectations, generating $40.7 billion in revenue and an adjusted earnings per share (EPS) of $0.49.
However, the company announced it would suspend its full-year guidance, primarily due to uncertainty surrounding new automotive tariffs proposed by the Trump administration.
This decision comes in the wake of rival General Motors’ recent adjustment of its financial outlook, leaving investors eager for clarity from Ford’s leadership.
Ford Surpasses Q1 Expectations Despite Uncertainty Over New Tariffs
The new tariffs, which include a 25% duty on imported vehicles and parts, are projected to cost Ford approximately $2.5 billion, with an expected net adverse impact on adjusted earnings before interest and taxes (EBIT) of around $1.5 billion for 2025.
CEO Jim Farley characterized the situation as an “opportunity for Ford,” citing the company’s robust domestic manufacturing footprint compared to competitors like GM, who depend more heavily on imports.
In terms of operational performance, Ford’s divisions showed mixed results. Ford Pro, its commercial and software business, generated an impressive EBIT of $1.3 billion, while Ford Blue, focused on gas-powered vehicles, reported $96 million.
Conversely, the Model e division, responsible for electric vehicles, recorded an EBIT loss of $849 million amid ongoing efforts to refine gross margins and strategically invest in battery technology and next-generation products.
Despite the challenges faced by Model e, Ford’s new EV models in Europe contributed to increased revenue, with products like the electric Explorer and Capri driving interest.
The automaker has extended its “From America, For America” promotional campaign, which now offers employee pricing on many 2024 and 2025 models through July 4. As Ford plans to host an annual meeting on May 8, further details on its EV strategies and plans to navigate the tariff landscape are anticipated.