Ford Motor (F) earnings Q2 2025

Ford Motor reported second-quarter revenue that beat expectations Wednesday, and reinstated its full-year guidance, which includes an estimated net $2 billion hit from tariffs.

The automaker suspended its full-year guidance in May due to President Donald Trump’s auto tariffs. At that time, Ford predicted a $2.5 billion impact from tariffs this year but said it would be able to offset $1 billion of that total through mitigation efforts.

Its new estimate reflects a total $3 billion hit from tariffs, but the company still estimates it can offset $1 billion of that.

The company’s stock dropped more than 3% during after-hours trading.

Chief Financial Officer Sherry House said on a call with the media that Ford has been in “near-daily communications” with the Trump administration and has been having “constructive conversations.” She said steel and aluminum tariffs have been a focus.

She said Ford has seen price increases in the retail segment of about 1% and said she expects that increase to hold for the rest of the year.

The new guidance includes adjusted earnings before interest and taxes of $6.5 billion to $7.5 billion, lower than the pre-tariff range it issued in February of $7 billion to $8.5 billion. Its adjusted free cash flow is estimated to be $3.5 billion to $4.5 billion, in line with the prior guidance. It also expects capital spending of about $9 billion versus the earlier range of $8 billion to $9 billion. 

“We make about 80% of our vehicles [in the U.S.], but we still import parts from all over the world, and that’s the opportunity to work with the administration. And they are very committed to supporting companies like Ford that have committed to the U.S. manufacturing base,” CEO Jim Farley said on CNBC’s “Closing Bell: Overtime.”

Trump’s 25% tariffs on imported vehicles and many auto parts remain in effect. While the Trump administration has announced some country-specific deals and made changes to its auto-related levies — including reimbursing automakers for some U.S. parts and reducing the “stacking” of tariffs on one another for the industry — automakers are still grappling with the tariff-induced effect on their bottom lines.

Farley said this spring that those changes were helpful, but more actions were needed.

Ford’s estimated tariff impact is notably less than what its crosstown rival General Motors predicts, as Ford has a larger U.S. footprint and imports fewer vehicles than GM. Last week, GM reiterated that it expects $4 billion to $5 billion in tariff impacts in 2025. In the second quarter alone, GM said it saw a $1.1 billion hit.

Here’s how the company performed in the second quarter, compared with average estimates compiled by LSEG:

• Earnings per share: 37 cents adjusted. It was not immediately clear if that was comparable to the 33 cents expected.
• Automotive revenue: $46.94 billion vs. $43.21 billion expected

For the second quarter, Ford reported total revenue, including its finance business, of $50.2 billion, a 5% increase from…