Ford Motor Co.'s Net Income Drops 102% in Q2 2025

Ford Motor Co. reported second-quarter 2025 revenue of $50.2 billion, a 5% increase from $47.8 billion in the same period last year. Despite the revenue growth, the company incurred a net loss of $36 million, a significant decline from a net income of $1.8 billion in Q2 2024, representing a 102% decrease year-over-year. The reported net loss of $0.01 per diluted share missed the analyst EPS estimate of $0.34.

Key Business Segment Performance

The company's performance was influenced by mixed results across its business segments. The Ford Pro segment demonstrated strong performance, generating $2.3 billion in EBIT with a 12.3% margin on $18.8 billion in revenue. This segment saw software and physical services contribute 17% of its EBIT on a trailing 12-month basis, with paid subscriptions growing 24% year-over-year to 757,000.

Conversely, the Ford Model e segment reported an EBIT loss of $1.3 billion, a $179 million higher loss compared to the same quarter last year. This loss was attributed to net tariff-related costs, strategic investments in next-generation electric vehicles, and expenses related to the launch of Ford's new battery plant in Marshall, Michigan. Despite the loss, the segment doubled its revenue to $2.4 billion, indicating significant growth in its top line.

Ford Blue reported $661 million in EBIT, reflecting profitable market share gains, higher net pricing, and cost improvements. However, this was largely offset by the non-recurrence of last year's F-150 stock build and tariff-related headwinds, leading to a 3% decline in segment revenue to $25.8 billion. Ford Credit also performed well, reporting $645 million in earnings before taxes, an 88% increase compared to a year ago.

Management Outlook

Looking ahead to the full year 2025, Ford now anticipates adjusted EBIT to be between $6.5 billion and $7.5 billion. This updated guidance includes an estimated net tariff-related headwind of approximately $2 billion. The company also expects to generate adjusted free cash flow between $3.5 billion and $4.5 billion, with capital expenditures projected to be around $9 billion. This guidance reflects the strong underlying first-half performance across its Ford Blue, Ford Model e, Ford Pro, and Ford Credit segments, alongside continued improvements in cost efficiency.