Ford Flags $2B Tariff Headwind, Slashes Full-Year Outlook; But Bulls See Opportunity In EV Expansion

Retail chatter around Ford Motor jumped on Wednesday after the company said tariffs will reduce earnings by $2 billion this year, adding pressure to margins and forcing a downward revision of its full-year forecast.

President and CEO Jim Farley said during the second quarter (Q2) earnings call that tariffs are expected to be a “net headwind of about $2 billion”, adding that Ford is actively working with U.S. policymakers to prevent customers and workers from being “disadvantaged by policy change.” 

The announcement comes as the automaker reinstated its 2025 guidance, which was suspended in May due to tariff uncertainty.

Ford now expects full-year adjusted EBIT of $6.5 billion to $7.5 billion, down from its earlier February projection of $7 billion to $8.5 billion. The updated outlook includes the $2 billion tariff drag, which is composed of $3 billion in gross impacts, partially offset by $1 billion in recovery actions.

The company posted record Q2 revenue of $50.2 billion, up 5% year over year, but still reported a net loss of $36 million, citing special charges tied to the cancellation of a three-row electric SUV and a $570 million recall. 

Adjusted earnings per share fell 21% to $0.37, beating Koyfin’s analyst estimates of $0.33.

Farley maintained confidence in Ford’s strategic direction, citing recent trade agreements with Japan, Europe, and potentially South Korea as tailwinds that “make our strategy even more compelling.” 

He said Ford continues to push for a “single durable national emission standard” and highlighted progress on reducing regulatory compliance costs.

“In fact, our commitments to purchase CO₂ credits have already been reduced nearly $1.5 billion,” Farley noted, adding that reforms currently under consideration could unlock “multi-billion-dollar opportunities” over the next two years, especially within the Ford Blue division, which has borne the bulk of emissions-related costs.

Segment results revealed mixed performance. Ford Blue posted EBIT of $661 million, down from $1.17 billion a year ago due to tariff-related costs and lower F-150 volumes. 

Ford Model e, the EV division, saw its loss widen to $1.3 billion, pressured by tariffs and ramp-up costs at its new Marshall, Michigan battery plant. Ford Pro, the commercial vehicle unit, was a standout, reporting $2.3 billion in EBIT and 11% revenue growth, supported by growing paid software subscriptions.

On Stocktwits, retail sentiment for Ford was ‘extremely bullish’ amid ‘high’ message volume.

One user noted that Ford’s earnings call sounded bullish, highlighting the company’s efforts to revamp its EV production line and open a new battery plant as a move to better compete with Chinese EV makers globally. 

They also pointed out that the CEO signaled more positive updates on EVs and manufacturing could be coming in the next couple of weeks.

Another user suggested that any dip in Ford’s stock might be short-lived, drawing a comparison to General Motors’ recent post-earnings slide and quick rebound. 

Ford’s stock has risen 12.6% so far in 2025.

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