Ford Motor 2025 Q1 Earnings Misses Targets as Net Income Declines 64.5%

Ford Motor (F) reported its fiscal 2025 Q1 earnings on May 05th, 2025. The company's results fell short of expectations, with revenue declining by 5.0% year-over-year to $40.66 billion, missing the analyst forecast of $44.06 billion. Earnings per share also underperformed, dropping to $0.12 from $0.33 in the previous year, compared to the expected EPS of $0.47. Ford Motor suspended its full-year EBIT guidance due to tariff-related uncertainties, maintaining an adjusted EBIT range of $7 billion to $8.5 billion, excluding tariff impacts.

Revenue
Ford Motor reported a decrease in total revenue for Q1 2025, with the Company excluding Ford Credit generating $37.42 billion, while Ford Credit contributed $3.24 billion. The combined total revenue amounted to $40.66 billion, reflecting a 5.0% decline from the previous year.

Earnings/Net Income
Ford Motor's earnings per share significantly declined, falling by 63.6% to $0.12 in Q1 2025 from $0.33 in Q1 2024. Similarly, net income decreased by 64.5%, reaching $473 million compared to the prior year's $1.33 billion. This suggests a challenging quarter for the company's profitability.

Post-Earnings Price Action Review
Ford Motor's stock price demonstrated a positive correlation with earnings report metrics, particularly in the short term. Revenue figures showed a 3-Day win rate of 52.11%, indicating a tendency for the stock to rise following earnings announcements. Net income also influenced stock movement positively, albeit slightly less than revenue, with a 3-Day win rate of 51.96%. EPS, however, showed a diminishing impact over longer periods, with a 30-Day win rate of only 46.56%. While short-term effects are favorable, the stock's performance tends to be more variable in the longer term.

CEO Commentary
Jim Farley, President and CEO of Ford Motor Company, emphasized the company's strong underlying business performance, stating, "We beat our original expectation for the quarter" and highlighted best first-quarter US pickup sales in over 20 years. He acknowledged challenges related to tariffs, estimating a gross impact of $2.5 billion, which led to the suspension of full-year guidance. Farley expressed optimism about Ford's position, asserting, "It puts us in the pole position," and noted the importance of US manufacturing capacity, stating that Ford's US footprint provides a significant competitive advantage in the evolving market landscape.

Guidance
Ford Motor Company has suspended its full-year 2025 EBIT guidance due to tariff-related uncertainties but maintains an adjusted EBIT range expectation of $7 billion to $8.5 billion, excluding tariff impacts. The company estimates a gross adverse EBIT impact of $2.5 billion and a net adverse EBIT impact of approximately $1.5 billion for the full year 2025. Ford aims for $1 billion in net cost improvements this year, excluding tariffs, and will reassess guidance during the Q2 earnings call.

Additional News
Ford Motor Company announced a second-quarter regular dividend of 15 cents per share on April 28, 2025, reinforcing its commitment to shareholder returns despite uncertainties. Additionally, Ford declared key leadership changes, with Lincoln’s Dianne Craig retiring after a 38-year career, and Joaquin Nuno-Whelan stepping in to lead Global Lincoln. On March 14, 2025, Ford appointed Michael Aragon to head Integrated Services, focusing on creating customer experiences powered by software and services, as part of its Ford+ plan for growth.