Key Takeaways
- Ford exceeded earnings and revenue forecasts as its commercial vehicle unit posted strong sales.
- The automaker reinstated its 2025 guidance after suspending it in May because of tariff uncertainty.
- Ford now sees tariffs will cost $2 billion this year, up from its previous estimate of $1.5 billion.
Ford Motor (F) shares advanced modestly as the automaker posted better-than-expected results, although it lowered its guidance as it sees tariff impacts to be greater than previously thought.
Ford reported second-quarter adjusted earnings per share (EPS) of $0.37, with revenue growing 5% year-over-year to $50.18 billion. Both exceeded Visible Alpha estimates.
The results were driven by an 11% increase in sales to $18.8 billion at Ford Pro, its commercial vehicle division. Sales at its electric vehicle segment, Ford Model e, jumped 184% to $2.4 billion. However, sales at the Ford Blue unit, which includes internal combustion engine vehicles such as its popular F-Series trucks, Bronco, and Mustang, were down 3% to $25.8 billion.
CFO Sherry House said the management was “remaking Ford into a higher-growth, higher-margin and more durable business—and allocating capital where we can compete, win and grow.”
However, the company noted that it anticipates the full-year costs of tariffs will be $3 billion, although it said mitigation efforts will reduce that effect by $1 billion. In its Q1 report, it explained that it was looking for $2.5 billion in tariff expenses with a $1 billion offset. At that time, it said that because of tariff uncertainty, it was withdrawing its previous 2025 outlook of adjusted EBIT of $7.0 billion to $8.5 billion. Ford now is looking for adjusted EBIT of $6.5 billion to $7.5 billion.
Shares of Ford Motor, which rose 1.5% in recent trading, are up about 11% this year.
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