Ford takes $800M tariff hit, raised FY25 tariff headwind to $2B

Ford (NYSE:F) shares are struggling in after-hours trading as a significant hit from U.S. trade tariffs undermined otherwise solid second quarter results.

The automaker recorded a tariff impact of $800M during the quarter and now anticipates a headwind of $2B for the year, an increase from the prior estimate of a $1.5B cost. This ultimately led Ford (NYSE:F) to adjust its EBIT guidance for the rest of FY25 to be between $6.5B to $7.5B from prior guidance of $7B to $8.5B, though still straddling the consensus estimate of $6.84B.

Reinstated guidance also includes adjusted free cash flow of $3.5B to $4.5B and capital spending of ~$9B, all of which assumes a tariff impact of $2B.

For the reported quarter, Ford (NYSE:F) earned a profit of $0.37 per share, down 10 cents from a year ago, but 4 cents better than expected. Total revenue increased 5% to $50.2B versus $42.47B estimates. As a result of increased import tariffs, adjusted free cash flow declined $400M to $2.8B.

The outsized tariff cost contributed to an unadjusted loss of $0.01 per share from a profit of $0.46 in the same quarter last year. Wall Street expected a GAAP profit of $0.31.

By nameplate, Ford Blue revenue decreased 3% to $25.8B with an EBIT margin of 2.6%, down 180 basis points from last year.

Ford Model e realized a 105% increase in revenue to $2.4B with a negative EBIT margin of 56.4%.

In the company’s Pro segment, revenue increased 11% to $18.8B, while EBIT margin narrowed 270 basis points to 12.3%.

Ford (F) shares are down more than 4%.