DETROIT – Ford Motor is preparing to announce its first-quarter earnings following the close of markets on Monday. Analysts suggest that while attention will be on the quarterly figures, the primary focus will be on the company’s guidance for 2025 and the ramifications of President Donald Trump’s ongoing tariffs on the automotive sector.
The tariffs, which impose a 25% tax on imported vehicles and various parts, have raised considerable uncertainty within the automotive industry. This instability has prompted Wall Street analysts to lower their projections for numerous automotive stocks, including those of Ford.
According to average estimates compiled by LSEG, Wall Street anticipates the following:
- Earnings per share: 2 cents adjusted
- Automotive revenue: $36.21 billion
If these projections hold true, they would indicate a 9.2% drop in revenue compared to the same period last year, alongside a staggering 96% decrease in adjusted earnings per share. In its first quarter of 2024, Ford recorded $39.89 billion in automotive revenue, a net income of $1.33 billion, and adjusted earnings before interest and taxes of $2.76 billion.
As a direct consequence of the tariffs, Ford has halted its vehicle exports to China. However, the company has yet to announce any significant changes to its manufacturing strategies in North America.
On Wednesday, Ford CEO Jim Farley refrained from disclosing potential financial impacts stemming from the tariffs, nor did he indicate any intention to revise the company’s 2025 guidance.
Ford’s forecast from February estimated adjusted earnings before interest and taxes (EBIT) to range from $7 billion to $8.5 billion, with adjusted free cash flow projected between $3.5 billion and $4.5 billion, and capital expenditures anticipated to fall between $8 billion and $9 billion.
In a related development, Ford’s rival, General Motors, announced last week a revision to its 2025 financial guidance, now expecting a $4 billion to $5 billion impact due to the tariffs.
This news is developing. Please check back for further updates.
