Navigating the auto market has never been easy, but 2025 is proving to be particularly challenging for Ford Motor Company 🚘. As of May 6, 2025, Ford (NYSE: F) reported a major drop in its first-quarter earnings, suspended its financial guidance, and is battling the pressure of new U.S. tariffs. For long-term investors and potential buyers of F stock, these shifts paint a crucial picture of the company's current position—and its uncertain future. Let’s break it all down.
📉 Q1 2025: Profit Plunges Despite Beating EPS Estimates
Ford's performance this quarter might surprise you: while it beat analyst expectations for earnings per share, the overall financials show a sharp slowdown in profitability:
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Net Income: 🟥 Fell by a staggering 64% to $471 million, compared to $1.3 billion last year.
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Revenue: 📉 Dropped 5%, standing at $40.7 billion.
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EPS (Adjusted): 💵 Came in at $0.14, better than Wall Street’s forecast of $0.02.
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Adjusted EBIT: 📊 Took a heavy hit, slumping to $1 billion from $2.8 billion in Q1 2024.
While the EPS beat created a momentary optimism, Ford's stock still dropped over 2% in after-hours trading—a clear sign that investors are uneasy about deeper structural issues.
🚫 Why Did Ford Suspend Its 2025 Outlook?
The biggest blow? Ford has pulled its full-year forecast due to massive uncertainty created by new U.S. tariffs.
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The automaker expects a $1.5 billion dent in adjusted EBIT due to tariffs targeting imports from China and Mexico.
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The total estimated impact: a whopping $2.5 billion.
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Ford is working to absorb $1 billion of this hit by:
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Rerouting logistics ✈️
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Halting select export operations 🛑
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This makes it clear: the trade policies are now a serious headwind to Ford's 2025 performance.
⚡ EV Division: Still a Long Road Ahead
Ford's electric dreams are still costly. In Q1 2025:
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The EV unit is expected to lose up to $5.5 billion this year 😬.
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Since 2023, total EV losses have already crossed $10 billion.
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As a damage-control measure, Ford scrapped its FNV4 EV platform project—a decision that may improve capital allocation 💡 but slows innovation.
Ford is clearly realigning its EV roadmap to manage ballooning costs.
📊 F Stock Today: Price & Investor Sentiment
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Current Share Price: $10.17 🟡
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Annual Performance: Down nearly 19% over the past year
The drop reflects investor concerns not just about tariffs, but also about Ford’s ability to compete in the evolving EV landscape and maintain margins amidst cost pressures.
🔮 What’s Next for Ford?
Ford plans to revisit and revise its full-year guidance in Q2 2025. Until then, the strategy revolves around:
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Cost-cutting
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Boosting efficiency in U.S. operations
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Staying agile amid trade tensions
For shareholders, this means a period of watchful waiting. Ford still has a strong legacy, but right now, it’s treading water through unpredictable global tides 🌊.
