Ford slips as tariffs take an $800 million bite out of its earnings
Ford announced its second-quarter earnings results after the bell on Wednesday.
Despite being more shielded from tariffs than many of its rivals, with 82% of its North American vehicles built in the US, Ford says levies have cost it $800 million so far this year.
The Detroit automaker detailed the tariff-related impact in its second-quarter earnings report, released after the market closed on Wednesday. Though Ford’s seen benefits from tariff panic buying and its four-month-long employee pricing discounts, the charges are still a hit to profits. Earlier this year, Ford estimated a $1.5 billion full-year tariff impact for 2025.
On Wednesday, it upwardly revised that to “about $2 billion.”
Ford posted adjusted earnings of $0.37 per share, beating the $0.33 per share analysts polled by FactSet expected. The automaker reported a net loss of $36 million on the quarter related to one-time charges (largely attributed to the cancellation of an electric SUV). Wall Streeted expected a $1.25 billion profit.
Ford’s shares were down about 2% in after-hours trading.
Sales came in at $50.2 billion, nearly 10% better than the $45.79 billion analysts were anticipating and up 5% from last year. Earlier this month, Ford said its second-quarter unit sales had risen 14% compared to last year.
Looking ahead, Ford expects full-year earnings before interest and taxes of between $6.5 billion and $7.5 billion. The automaker previously pulled its annual outlook amid tariff uncertainty. In February, Ford had projected full-year earnings before interest and taxes of between $7 billion and $8.5 billion, though those figures did not account for sector tariffs on vehicles or auto parts.
The automaker has been issuing recalls at a level bordering on legendary this year. Through June alone, Ford issued 88 safety recalls, more than the full-year total for any other automaker, ever.
Ford’s EV losses continued to pile up, with its Model e segment losing $1.33 billion on the quarter, 15% more than last year. The division has lost $2.18 billion through the first half of this year.
