Ford's Q1 2025 Earnings Beat Revenue Expectations Despite Tariff Pressures and Supply Chain Challenges
Ford Motor Company has reported its first-quarter 2025 earnings. Despite beating revenue expectations, the automaker's stock fell in premarket trading due to tariff pressures and supply chain challenges. Ford also suspended its 2025 financial guidance.
Ford's automotive revenue in Q1 2025 was $37.42 billion, surpassing analysts' estimates. However, total revenue decreased by 5% year over year to $40.7 billion. Ford Pro's revenue also dropped by 16% to $15.2 billion in the same period.
The company's net income for the quarter was $471 million, a significant 64% decrease from Q1 2024. Ford Blue's earnings before interest and taxes (EBIT) fell by 90% to $96 million. Despite these setbacks, Ford reported adjusted earnings per share (EPS) of 14 cents, exceeding Wall Street's expectations of 2 cents. Model e also narrowed its losses to $849 million, a substantial improvement from the $1.33 billion loss in Q1 2024.
Ford's stock price fell nearly 2.6% in premarket trading on Tuesday, adding to the 19% decline over the past year. The company has attributed these challenges to tariff pressures and supply chain issues. Ford expects a $2.5 billion tariff impact in 2025, with an anticipated $1.5 billion hit to EBIT. The CEO and CFO are now focusing on strategies to mitigate these impacts.
