Ford Motor Company (NYSE:F) shares were little changed on Thursday as the automaker reported mixed earnings for the second quarter and reinstated its full-year guidance, projecting a $2 billion hit from global tariffs.
The company posted a record $50.2 billion in revenue for Q2, ahead of estimates of $44.14 billion. This included automotive revenue of $46.94 billion, above estimates of $43.21 billion.
Earnings per share were $0.37, above the $0.33 expected.
However, the company reported a net loss of $36 million for the quarter, attributed to special charges related to a field service action and previously cancelled EV program.
“We recorded our fourth consecutive quarter of year-over-year cost improvement, excluding the impact of tariffs, building on progress we made last year when we closed roughly $1.5 billion of our competitive cost gap in material cost,” Ford CFO Sherry House said in a statement.
“Our balance sheet keeps getting stronger, further enabling our ability to invest in areas of strength.”
For 2025 guidance, Ford expects adjusted EBIT of $6.5 billion to $7.5 billion, adjusted free cash flow of $3.5 billion to $4.5 billion, capital spending of about $9 billion, and a net tariff-related headwind of about $2 billion.
The company in February had initially provided adjusted EBIT guidance of $7 billion to $8.5 billion.
Analysts at Bank of America attributed the Q2 beat to strong volumes and better pricing, but noted that foreign exchange was a $400 million headwind.
“We are encouraged by the solid performance in the quarter,” they wrote. “The guidance of $6.5 billion to $7.5 billion gives us more confidence that Ford will be able to print results largely consistent with what we saw in Q2.”
They see some risks to Q4 results, which they wrote appear to be the big question mark for the broader auto industry.
“Q4 largely overlaps with model year 2026 rollout, which could bring additional costs for consumers already challenged by affordability issues,” they wrote. “However, we think that Ford's large production footprint in the US is a major positive versus competitors and should help the company maintain relatively stable pricing.”