Ford Motor Company recently unveiled its first-quarter 2025 financial results, highlighting both achievements and setbacks. The company managed to exceed Wall Street expectations with an adjusted earnings per share of 14 cents. However, net income saw a significant decline of 64% year-over-year, falling from $1.3 billion to $471 million, as reported by Reuters.
Despite strong earnings performance, Ford's revenue dropped by 5% to $40.66 billion, primarily due to a 5.2% reduction in sales, according to El País. The company also announced it expects a $1.5 billion hit on its 2025 operating profits due to tariffs imposed under President Donald Trump’s trade policy. This prompted Ford to suspend its 2025 financial guidance, leaving analysts and investors to contemplate the ramifications.
In response to these challenges, Ford has made strategic operational adjustments, such as a 35% reduction in first-quarter expenses through logistics changes, as mentioned in the Financial Times. Additionally, Ford’s robust domestic manufacturing footprint remains a strategic advantage, with 79% of its U.S. sales built locally. This markedly differs from rivals like General Motors, which are projected to incur higher tariff-related costs. Although the electric vehicle sector continues to pose financial hurdles for Ford, the company persists in its efforts to manage these complexities.