Ford (F) reported better-than-expected first quarter results but pulled its full-year guidance as President Trump’s auto tariffs could have “significant impacts” on the bottom line.
Ford said in a statement that while its business is strong and “tracking within” its previous adjusted EBIT (earnings before interest and taxes) range of $7 billion to $8.5 billion pre-tariffs, auto import and parts tariffs will have a “net adverse” impact of $1.5 billion in adjusted EBIT for 2025. Ford said it would withdraw its prior projection given the added risks.
Ford stock dropped 2% in after-hours trade following the announcement.
“Given material near-term risks, especially the potential for industrywide supply chain disruption impacting production, the potential for future or increased tariffs in the US, changes in the implementation of tariffs including tariff offsets, retaliatory tariffs and other restrictions by other governments and the potential related market impacts, and finally policy uncertainties associated with tax and emissions policy, the company is suspending guidance,” the company said in a statement.
NYSE – Delayed Quote • USD
Underscoring the deep concerns over tariff policy, Ford added: “These are substantial industry risks, which could have significant impacts on financial results, and that make updating full year guidance challenging right now given the potential range of outcomes.”
Trump’s 25% tariff on foreign auto imports will likely not hurt Ford as much as its rivals because 80% of Ford’s vehicle sales in the US are built domestically, but that, coupled with the added pressure of 25% parts, is pressuring Ford’s results going forward.
Looking forward, all eyes will be on Ford’s 2025 profit guidance. Ford didn’t pull its guidance when Trump adjusted auto parts tariffs to include some offsets, but CEO Jim Farley is expected to reveal updated metrics on Monday.
Jim Farley, president and CEO of Ford, speaks at the Ford Motor Company Kentucky Truck Plant to launch the 2025 Ford Expedition on April 30, 2025, in Louisville, Ky. (AP Photo/Carolyn Kaster) · ASSOCIATED PRESS
Last week, GM announced it would take a $4 billion to $5 billion tariff hit to its full-year EBIT earnings, with CFO Paul Jacobson adding $2 billion of that would come from importing vehicles into the US and the balance from auto parts imports.
For the quarter, Ford reported revenue of $40.7 billion, topping estimates of $36.75 billion per Bloomberg consensus, but below the $42.8 billion reported a year ago.
Ford’s adjusted EPS came in at $0.14, better than the ($0.04) loss expected, with adjusted EBIT reaching $1 billion vs $308 million expected. Ford said planned downtime, unfavorable fleet pricing, volume decline, and adverse F/X pricing hit the bottom line.
Read more: The latest news and updates on Trump’s tariffs
As part of its Ford+ plan, Ford divided its business into three units: Ford Blue, for the traditional gas-powered business; Ford Model e, for the electric vehicle division; and Ford Pro, for its commercial and super-duty truck business. Last quarter, Ford reported the following:
- Ford Blue: $21.0 billion in revenue, $96 million in EBIT
- Model e: $1.2 billion in revenue, -$849 million in EBIT
- Ford Pro: $15.2 billion in revenue, $1.31 billion in EBIT
A 2025 Ford Expedition moves on an assembly line during a media tour to launch the 2025 Ford Expedition at the Ford Motor Company Kentucky Truck Plant on April 30, 2025, in Louisville, Ky. (AP Photo/Carolyn Kaster) · ASSOCIATED PRESS
Like GM, Ford saw sales gains in Q1 as customers likely bought ahead of tariffs coming online in April. Though overall sales fell 1.3% to 501,291 units due to rental fleet sale timing and cancellation of the Ford Edge, Ford retail sales jumped 5% in Q1, powered by its truck, SUV, and EV sales.
The momentum continued in April, with retail sales jumping 19%. Ford surprised rivals with its “handshake deal for America,” announcing employee pricing to all Americans for most of its vehicles earlier in the month. Ford said for the average vehicle, this could mean a discount of as much as $4,000, and the company said it extended the deal through July 4.
StockStory aims to help individual investors beat the market.
Pras Subramanian is a reporter for Yahoo Finance. You can follow him on X and on Instagram.
Read the latest financial and business news from Yahoo Finance
