Ford says it will build ‘breakthrough’ EVs in the US
Ford (F) reported Q2 2025 earnings on Wednesday, beating top and bottom line expectations. Despite the revenue growth, Ford is warning profits will take a hit thanks to Trump's tariffs. We will also learn about Ford's plans to build "breakthrough" EVs in the US very soon.
Ford Q2 2025 earnings preview
After suspending full-year guidance in May, Ford warned that it expected to take a $2.5 billion hit from Trump's auto tariffs.
Given that Ford builds more vehicles in the US than any major automaker, outside of Tesla, it's expected to see less of an impact from the 25% tariff on imports.
Ford imports just about 21% of the vehicles it sells in the US. In comparison, crosstown rival GM imports around 46%. GM announced last week that the tariffs cost it an extra $1.1 billion in the second quarter. For the full year, GM still expects a $4 billion to $5 billion impact.
Unlike GM, Ford breaks down earnings into three units, including Model e, its electric vehicle business. Ford's Model e posted a nearly $1 billion loss in the first quarter, but new EVs rolling out in Europe boosted revenue.
Although Ford's vehicle sales rose 14% to over 612,000 in Q2, EV sales dropped 31% to just 16,438. Ford spokesperson Martin Gunsberg told Electrek that both the Mustang Mach-E and F-150 Lightning were impacted by the changeover to the 2025 model year and the Mach-E recall.
Ford Mustang Mach-E (left) and F-150 Lightning (right) (Source: Ford)
According to Estimize, Wall Street expects Ford to post second-quarter EPS of $0.33 on revenue of $43.75 billion.
Improving costs and more EV news to come
Ford beat earnings estimates posting second quarter revenue a record $50.02 billion in revenue, up 5% YOY and an adjusted EPS of $0.37.
Ford Q2 2025 Revenue: $50.02 billion vs $43.75 billion expected
Ford Q2 2025 adjusted EPS: $0.37 vs $0.33 expected
Despite the higher revenue, Ford posted a $36 million net loss, which was due to a "field service action and expenses related to a previously announced cancellation of an electric vehicle program." It also incurred an $800 million loss due to tariffs in the quarter.
Ford Pro continues to drive both top and bottom-line growth with high-margin revenue streams from software and services.
Its Model e EV business, on the other hand, lost another $1.3 billion in the second quarter. Through the first half of the year, Model e has now lost $2.2 billion.
Ford Model e Q2 2025 earnings (Source: Ford)
Ford attributed the higher losses to tariff-related costs and investments in launching its new EV battery plant in Michigan.
After launching new EVs in Europe, like the Capri and electric Explorer, Model e's revenue doubled to $2.4 billion. Mustang Mach-E and F-150 Lightning material costs also improved in the quarter.
Ford's electric vehicles in Europe from left to right: Puma Gen-E, Explorer, Capri, and Mustang Mach-E (Source: Ford)
Ford now expects full-year adjusted EBIT of $6.5 billion to $7.5 billion, including a $2 billion hit from tariffs. That's down from the $7 billion to $8.5 billion it previously forecasted.
The company will partially offset a $3 billion gross adjusted EBIT impact, partially offset by $1 billion in recovery actions.
CEO Jim Farley announced an event on August 11 in Kentucky, where Ford will share more details about its "plans to design and build breakthrough electric vehicles in America."
Farley said on the company's earnings call that Ford is not looking to compete with South Korean and Japanese brands in the mass market EV space, but rather what the company is known for best — trucks and SUVs. The company will utilize LFP batteries manufactured in Michigan to reduce costs.
The first electric model built on Ford's new platform is expected to be a mid-size pickup truck, set to arrive in 2027.
Check back for more info from Ford's Q2 2025 earnings call. We will keep you updated with the latest.
