Ford Faces Uncertain 2025 Outlook Amid Tariffs Ahead of Q1 Earnings Report

DETROIT – Ford Motor is set to report its first-quarter earnings after the markets close Monday, but investor focus is expected to be more on the automaker’s 2025 guidance and impact of President Donald Trump’s ongoing auto tariffs than on the quarterly results.

Impact of Auto Tariffs

The tariffs, including 25% levies on imported vehicles and many parts, have created growing uncertainty for the automotive industry. The instability has caused Wall Street analysts to downgrade many automotive stocks, including Ford.

Expected Earnings

Here’s what Wall Street expects, based on average analysts’ estimates:

• Earnings per share: 2 cents adjusted
• Automotive revenue: $36.21 billion
  Those results would mark a 9.2% decrease in revenue compared with a year earlier and a 96% dive in adjusted earnings per share. Ford’s first quarter of 2024 included $39.89 billion in automotive revenue, net income of $1.33 billion, and adjusted earnings before interest and taxes of $2.76 billion.

Manufacturing Plans

The Detroit automaker has stopped exporting vehicles to China as a result of the tariffs, but Ford has not publicly announced any significant changes to its North American manufacturing plans.

Financial Impact

Ford CEO Jim Farley on Wednesday declined to detail any financial impact the tariffs are expected to have on the company or whether it planned to pull its 2025 guidance.
Ford’s 2025 forecast from February called for adjusted earnings before interest and taxes, or EBIT, of $7 billion to $8.5 billion; adjusted free cash flow of $3.5 billion to $4.5 billion; and capital expenditures between $8 billion and $9 billion.

Comparison with General Motors

Ford crosstown rival General Motors last week lowered its 2025 financial guidance to include an expected $4 billion to $5 billion impact as a result of the tariffs.

Conclusion

The upcoming earnings report from Ford Motor is highly anticipated, with investors eagerly waiting to see how the company will navigate the challenges posed by the ongoing auto tariffs. The impact of these tariffs on the automotive industry as a whole is still uncertain, and Ford’s guidance for 2025 will be closely watched for any signs of how the company plans to mitigate their effects.

FAQs

Q: What is the expected earnings per share for Ford Motor in the first quarter?
A: The expected earnings per share is 2 cents adjusted.
Q: How much is the automotive revenue expected to be?
A: The expected automotive revenue is $36.21 billion.
Q: What is the impact of the tariffs on Ford’s manufacturing plans?
A: Ford has stopped exporting vehicles to China as a result of the tariffs, but has not announced any significant changes to its North American manufacturing plans.
Q: How does Ford’s 2025 forecast compare to General Motors’?
A: Ford’s 2025 forecast includes adjusted earnings before interest and taxes of $7 billion to $8.5 billion, while General Motors expects an impact of $4 billion to $5 billion as a result of the tariffs.