Ford beats on Q1 earnings but pulls guidance as tariffs could have 'significant' impact on bottom line

Tue, May 6, 2025, 9:48 AM 4 min read

Ford (F) reported better-than-expected first quarter results but pulled its full-year guidance as President Trump's auto tariffs could have "significant impacts" on the bottom line.

The Big Three automaker said that while its business is strong and "tracking within" its previous adjusted EBIT (earnings before interest and taxes) range of $7 billion to $8.5 billion pre-tariffs, auto import and parts tariffs will have a "net adverse" impact of $1.5 billion in adjusted EBIT for 2025.

The company said it would withdraw its prior projection, given the added risks. Ford stock rose in early trade on Tuesday, rebounding after trading lower in the pre-market.

"Given material near-term risks, especially the potential for industrywide supply chain disruption impacting production, the potential for future or increased tariffs in the US, changes in the implementation of tariffs including tariff offsets, retaliatory tariffs and other restrictions by other governments and the potential related market impacts, and finally policy uncertainties associated with tax and emissions policy, the company is suspending guidance," Ford said in a statement.

Underscoring the deep concerns over tariff policy, Ford added: "These are substantial industry risks, which could have significant impacts on financial results, and that make updating full year guidance challenging right now given the potential range of outcomes."

Read more: What Trump's tariffs mean for the economy and your wallet

Trump's 25% tariff on foreign auto imports will likely not hurt Ford as much as its rivals because 80% of Ford's vehicle sales in the US are built domestically, but that, coupled with the added pressure of 25% parts, is pressuring Ford's results going forward.

Last week, GM announced it would take a $4 billion to $5 billion tariff hit to its full-year EBIT earnings, with CFO Paul Jacobson adding $2 billion of that would come from importing vehicles into the US and the balance from auto parts imports, though he said GM would try to offset at least 30% of the tariff expense.

For the quarter, Ford reported revenue of $40.7 billion, topping estimates of $36.75 billion per Bloomberg consensus, but below the $42.8 billion reported a year ago.

Ford's adjusted earnings per share came in at $0.14, better than the $0.04 loss expected, with adjusted EBIT reaching $1 billion versus $308 million expected. Ford said planned downtime, unfavorable fleet pricing, volume decline, and adverse F/X pricing hit the bottom line.