Ford has recently released its financial results for the second quarter of 2025, showing a net loss of $36 million. This loss can be attributed to special charges and the cancellation costs associated with the electric vehicle program. Despite this setback, Ford reported a total revenue of $50.2 billion for the quarter, which represents a 5% increase from the same period in 2024.
The company’s adjusted earnings before interest and taxes (EBIT) for the quarter stood at $2.14 billion, compared to $2.8 billion in the second quarter of the previous year. Ford also experienced $0.8 billion in adverse tariff-related impacts during this period.
Looking ahead, Ford has revised its full-year 2025 outlook, now expecting an adjusted EBIT of $6.5 billion to $7.5 billion, including approximately $2 billion in net “tariff-related headwinds.” The company aims to generate $3.5 billion to $4.5 billion in adjusted free cash flow. These revised projections take into account the strong performance across Ford’s divisions and continued cost improvements.
The net tariff-related headwind is estimated to result in a $3 billion gross adverse EBIT impact, partially mitigated by $1 billion from recovery actions. Ford’s operational cash flow for the quarter was significant, amounting to $6.3 billion, with an adjusted free cash flow of $2.8 billion.
By the end of the quarter, Ford’s cash reserves stood at $28.4 billion, with liquidity totaling $46.6 billion. The company also announced a regular dividend of 15 cents per share for the third quarter, to be paid on September 2nd to shareholders on record as of August 11th.
Ford Pro reported $2.3 billion in EBIT with a 12.3% margin on $18.8 billion in revenue. The software and services segment significantly contributed to Ford Pro’s EBIT, with paid subscriptions growing 24% year-over-year to 757,000.
However, Ford’s EV division, Model e, faced challenges in the second quarter, reporting an EBIT loss of $1.3 billion. This marked an increase in losses of $179 million from the same period in the previous year. The results were impacted by net tariff-related expenses, investments in electric vehicles, and costs from the launch of a new battery plant in Marshall, Michigan.
Ford Blue posted $661 million in EBIT, showcasing profitable market share gains and higher net pricing. However, these gains were offset by tariff-related issues and a 3% decline in segment revenue to $25.8 billion.
Ford Credit’s performance was notable, with an 88% increase in Q2 earnings before taxes compared to the prior year. Ford CFO Sherry House emphasized the company’s focus on cost improvement and strengthening its balance sheet to enable investments in areas of strength.
In conclusion, Ford is committed to remaking itself into a higher-growth, higher-margin, and more durable business. The company is allocating capital strategically to compete, win, and grow in the evolving automotive industry landscape.
