After a tumultuous second quarter, Ford says it beat its second-quarter revenue expectations despite an annual $2 billion loss from tariffs. Initially, Ford had suspended its full-year guidance following tariff announcements in May. In financial parlance, that means Ford would not, as companies ordinarily do, provide a forecast of its revenue, earnings, and other estimates for the year. Following its Q2 earnings announcement, the company reinstated its full-year guidance.
Ford Stands Tall Despite Tariffs And EV Expenses
Ford also revised its full-year projections following its second-quarter earnings. The automaker believes its total hit from tariffs will total around $3 billion, but it says it should be able to offset around $1 billion of that. Ford’s new guidance adjusts gross earnings from $6.5 to $7.5 billion. However, those figures are still lower than Ford’s pre-tariff forecasts, which called for around $7 to $8.5 billion in revenue.
The automaker makes around 80 percent of its cars in the US, but costs on imported parts are also an issue for the brand, which will lead to Ford’s projected $2 billion hit this year from tariffs.
This year also marks the brand’s “fourth consecutive quarter of year-over-year cost improvement, excluding the impact of tariffs,” said Ford CFO Sherry House. The company reported a net loss totaling $36 million due to “special charges” from a field service action and expenses from the cancellation of an electric vehicle program. That’s a stark difference from the same period last year, when Ford reported $1.83 billion in net income.
Tariffs And Recalls Continue To Plague Ford
Ford’s numerous recalls also played a negative role in the brand’s Q2 results. A recent recall of the marque’s Bronco Sport and Escape vehicles totaled 694,271 cars, costing the company an estimated $570 million on its Q2 balance sheets. Currently, Trump’s 25% tariff on imported vehicles and auto parts remains in effect. The administration has announced some deals with rates lower than this, but the negative impact on Ford’s sales is present regardless of any new deals. The automaker makes around 80 percent of its cars in the US, but costs on imported parts are also an issue for the brand, which will lead to Ford’s projected $2 billion hit this year from tariffs.
TopSpeed’s Take
Ford’s recalls are costing it money, and lots of it. Combined with the impact of tariffs, it’s surprising to find the brand’s annual financial outlook so positive, though the figures are still notably down from any pre-tariff projections. While President Trump and his administration have continued to negotiate both with automakers and other nations, many high tariff rates remain in effect. Ford won’t be the only automaker taking a hit as Q2 results continue to roll in.
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