Ford (F) reported better-than-expected first quarter results but pulled its full-year guidance as President Trump’s auto tariffs could have “significant impacts” on the bottom line.
Ford said in a statement that while its business is strong and “tracking within” its previous adjusted EBIT (earnings before interest and taxes) range of $7 billion to $8.5 billion pre-tariffs, auto import and parts tariffs will have a “net adverse” impact of $1.5 billion in adjusted EBIT for 2025. Ford said it would withdraw its prior projection given the added risks.
Ford stock dropped 2% in after-hours trade following the announcement.
“Given material near-term risks, especially the potential for industrywide supply chain disruption impacting production, the potential for future or increased tariffs in the US, changes in the implementation of tariffs including tariff offsets, retaliatory tariffs and other restrictions by other governments and the potential related market impacts, and finally policy uncertainties associated with tax and emissions policy, the company is suspending guidance,” the company said in a statement.
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Underscoring the deep concerns over tariff policy, Ford added: “These are substantial industry risks, which could have significant impacts on financial results, and that make updating full year guidance challenging right now given the potential range of outcomes.”
Trump’s 25% tariff on foreign auto imports will likely not hurt Ford as much as its rivals because 80% of Ford’s vehicle sales in the US are built domestically, but that, coupled with the added pressure of 25% parts, is pressuring Ford’s results going forward.
Looking forward, all eyes will be on Ford’s 2025 profit guidance. Ford didn’t pull its guidance when Trump adjusted auto parts tariffs to include some offsets, but CEO Jim Farley is expected to reveal updated metrics on Monday.
Last week, GM announced it would take a $4 billion to $5 billion tariff hit to its full-year EBIT earnings, with CFO Paul Jacobson adding $2 billion of that would come from importing vehicles into the US and the balance from auto parts imports.
For the quarter, Ford reported revenue of $40.7 billion, topping estimates of $36.75 billion per Bloomberg consensus, but below the $42.8 billion reported a year ago.
Ford’s adjusted EPS came in at $0.14, better than the ($0.04) loss expected, with adjusted EBIT reaching $1 billion vs $308 million expected. Ford said planned downtime, unfavorable fleet pricing, volume decline, and adverse F/X pricing hit the bottom line.
