Ford (F) Stock: Pulls Guidance And Issues $1.5 Billion Hit Warning From Tariffs

TLDR

Ford stock at $10.26, up 0.84% in early trading on May 3 Q1 EPS beat at $0.14 but down from $0.49 last year Tariffs to cost Ford $1.5B in 2025 adjusted EBIT EV unit losses projected at up to $5.5B this year Guidance pulled; next earnings due July 22-28, 2025

Ford Motor Company (NYSE: F) stock gained 2.11% to $10.39 in early trading on May 3, even after the automaker suspended its full-year guidance due to tariff uncertainty. Ford warned that the new 25% tariffs on automotive imports under President Trump’s policy will shave $1.5 billion off its 2025 adjusted earnings, prompting the company to pull its forecast. Shares still gained, as Q1 results came in ahead of Wall Street estimates.

Ford (F)

Q1 Beats, But Profits Slide

Ford reported first-quarter earnings per share (EPS) of 14 cents, far surpassing the analysts’ 2-cent estimate. However, this marked a sharp drop from 49 cents per share a year earlier. Net income fell to $471 million, down from $1.3 billion a year ago.

Ford Says Tariffs Will Cost Company $1.5 Billion in 2025: Ford Motor also reported a sharp drop in profits in the first three months of the year. (gift article) https://t.co/4gyEPrW3pe

— Mike (@half_witt) May 6, 2025

Revenue dipped 5% year-over-year to $40.7 billion but beat expectations of around $36 billion. Consumers rushed to purchase vehicles amid tariff concerns, helping Ford’s top line. Still, the impact of rising costs and production disruptions weighed on profit margins.

Tariffs Force Ford to Withdraw Guidance

The Detroit automaker had previously projected 2025 EBIT between $7.0 billion and $8.5 billion, but that outlook excluded tariffs. The $1.5 billion hit from tariffs, coupled with supply chain disruptions and retaliatory measures from China and other nations, led Ford to suspend its forecast until conditions stabilize.

CFO Sherry House noted Ford remains on track operationally, excluding the tariff effects. Rivals like General Motors cut guidance to reflect the new reality, while Stellantis also suspended its forecast.

Morningstar’s analyst called Ford’s withdrawal bold but understandable given the high degree of uncertainty. Investors have favored Ford over GM because of its larger U.S. production footprint; 79% of Ford’s U.S. sales are domestically assembled, versus 53% for GM.

EV Struggles Deepen

Ford’s challenges go beyond tariffs. Its electric vehicle and software division continues to bleed money, with projected losses of up to $5.5 billion in 2025. The company has already absorbed more than $10 billion in EV losses since 2023.

Ford recently scrapped its costly FNV4 EV architecture project to save capital, highlighting the automaker’s pivot toward financial discipline amid mounting pressures.

Among divisions, the profitable Ford Pro commercial segment saw Q1 revenue drop 16% to $15.2 billion, while gasoline-powered vehicle sales brought in $21 billion. The Model e division, which includes EV and software operations, recorded just $1.2 billion in revenue for the quarter.

Despite headwinds, Ford maintains an attractive forward dividend yield of 7.37%, with its next ex-dividend date on May 12. The company’s next earnings report is expected between July 22 and 28.

 

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