Ford reinstates full-year outlook, including $2 billion tariff hit

In this articleF your favorite stocksCREATE FREE ACCOUNTThe Ford display is seen at the New York International Auto Show on April 16, 2025.Danielle DeVries | CNBCFord Motor reported second-quarter revenue that beat expectations Wednesday and reinstated its full-year guidance, which includes an estimated net $2 billion hit from tariffs.The automaker susp its full-year guidance in May due to President Donald Trump's auto tariffs

At that time, Ford predicted a $2.5 billion impact from tariffs this year but said it would be able to offset $1 billion of that total through mitigation efforts.Its new estimate reflects a total $3 billion hit from tariffs, but the company still estimates it can offset $1 billion of that.CFO Sherry House said on a call with the media that Ford has been in "near-daily communications" with the Trump administration and has been having "constructive conversations." She said steel and aluminum tariffs have been a focus.She said Ford has seen price increases in the retail segment of 1% and said she expects that increase to hold for the rest of the year.The new guidance includes adjusted earnings before interest and taxes of $6.5 billion to $7.5 billion, lower than the pre-tariff range it issued in February of $7 billion to $8.5 billion

It also expects capital spending of $9 billion versus the earlier range of $8 billion to $9 billion. "Our second-quarter performance shows the power of the Ford+ [turnaround] plan and continued execution on cost and quality," CEO Jim Farley said in a statement.Trump's 25% tariffs on imported vehicles and many auto parts remain in effect

While the Trump administration has announced some country-specific deals and made changes to its auto-related levies — including reimbursing automakers for some U.S. parts and reducing the "stacking" of tariffs on one another for the industry — automakers are still grappling with the tariff-induced effect on their bottom lines.Farley said this spring that those changes were helpful, but more actions were needed.Ford's estimated tariff impact is notably less than what its crosstown rival General Motors predicts, as Ford has a larger U.S. foot and imports fewer vehicles than GM

In the second quarter alone, GM said it saw a $1.1 billion hit.Here's how the company performed in the second quarter, compared with average estimates compiled by LSEG:Earnings per : 37 cents adjusted

It was not immediately if that was comparable to the 33 cents expectedAutomotive revenue: $46.94 billion vs. $43.21 billion expectedFor the second quarter, Ford reported total revenue, including its finance , of $50.2 billion, a 5% increase from $47.81 billion in the second quarter of 2024

Wall Street analysts were expecting $1.89 billion, according to StreetAccount.The automaker reported a net loss of $36 million related to "special charges" from a field service action and expenses from the cancellation of a previously announced electric vehicle gram

Its net income for the same period last year was $1.83 billion.This month, the automaker announced a recall of more than 694,000 crossover SUVs, which Ford said at the time would cost the company $570 million and would be reflected in its second-quarter results

House said on a call with reporters that the $570 million charge is included in those "special charges," impacting the net loss.Ford's traditional "Blue" operations reported a 3% decline in revenue and EBIT of $661 million, less than the $1.17 billion in the same period in 2024

On the media call, House called its "" commercial the company's "growth engine." That segment saw a revenue increase of 11%

Ford's "Model e" electric vehicle lost $1.33 billion in the second quarter compared with a loss of $1.15 billion in 2024.Ford saw strong sales for the second quarter of 2025, totaling 612,095 vehicles, or a 14.2% increase from a year ago