Ford Reports First Quarterly Loss Since 2023 Amid $800 Million Tariff Hit.

Ford reported a net loss of $29 million, its first quarterly loss since 2023, due to an $800 million tariff hit. The company's finance chief, Sherry House, said that Ford has been clear that it should not be disadvantaged as the most American automaker.

Ford Motor Company (F) reported strong second-quarter earnings, surpassing analyst expectations, but the impact of tariffs remains a significant headwind. The automaker's adjusted earnings per share (EPS) of $0.37 beat the $0.33 estimate, while revenue of $50.2 billion exceeded the $44.14 billion consensus, up 5% year-over-year [1].

However, Ford's CFO Sherry House revealed that the company's net tariff-related headwind for the year is now expected to be about $2 billion, up from the previous $1 billion estimate. This increase is due to a $800 million tariff hit in Q2 alone, which was partially offset by $1 billion of mitigation efforts [1].

The tariff exposure has led Ford to adjust its full-year adjusted EBIT guidance to $6.5 billion to $7.5 billion, down from the previous $7.0 billion to $8.5 billion. The company also expects full-year adjusted free cash flow in a range of $3.5 billion to $4.5 billion, with capital expenditures of about $9 billion [1].

Ford's sales in the US saw a 14% increase in Q2, driven by strong demand for gas-powered vehicles and hybrids, while electric vehicle (EV) sales declined by 31% [1]. The company's "employee pricing for all" strategy was a significant driver of sales gains.

Despite the tariff challenges, Ford remains committed to its Ford+ plan, which divides its business into three units: Ford Blue, Ford Model e, and Ford Pro. Ford Blue reported $25.8 billion in revenue and $661 million in EBIT, while Ford Model e saw $2.4 billion in revenue but incurred a loss of $1.329 billion in EBIT. Ford Pro posted $18.8 billion in revenue and $2.318 billion in EBIT [1].

In other news, the White House has released a new list of tariff rates against nearly 70 countries, including Brazil, Israel, and South Africa. The revised rates will take effect next week, with notable increases for Iceland (15%), Israel (17%), South Africa (30%), Switzerland (39%), Taiwan (20%), and Vietnam (20%) [2].

References:
[1] https://finance.yahoo.com/news/ford-reports-q2-earnings-beat-but-takes-800m-tariff-hit-200716165.html
[2] https://nypost.com/2025/07/31/us-news/white-house-releases-new-tariff-rates-for-dozens-of-countries/