Ford Beats Q1 Earnings Expectations but Suspends 2025 Outlook Over Tariff Concerns

Ford Beats Q1 Earnings Expectations but Suspends 2025 Outlook Over Tariff Concerns

Ford Motor Company (NYSE: F) reported better-than-expected first-quarter results but sent a wave of concern through the market after it suspended its full-year outlook, citing rising uncertainty around auto tariffs and potential supply chain disruptions.

For Q1, Ford posted adjusted earnings per share (EPS) of $0.14, beating analysts’ expectations of a $0.01 loss. However, EPS was still down 71% year-over-year. Revenue for the quarter came in at $40.7 billion, down 5% from a year earlier but ahead of the $38.49 billion estimate from Visible Alpha.

The automaker warned that it anticipates a $1.5 billion hit to adjusted EBIT (earnings before interest and taxes) for the year, directly linked to rising tariff-related costs and what it described as the “potential for industrywide supply chain disruption.” As a result, Ford withdrew its full-year financial guidance, increasing investor uncertainty.

Ford shares dropped roughly 3% in after-hours trading, and the stock is now down nearly 20% over the past 12 months.

The news comes just days after General Motors (GM) slashed its own 2025 outlook, forecasting a $4 billion to $5 billion profit hit due to similar tariff concerns. While both Ford and GM manufacture most of their vehicles in the United States, a significant portion of the components they use are sourced from overseas—leaving them vulnerable to global trade tensions and rising import costs.

Bottom Line:

While Ford outperformed expectations in Q1, its decision to suspend forward guidance reflects a growing sense of caution across the auto industry amid geopolitical and economic uncertainty.