As expected, Ford Motor Co. reported a drop in earnings and profits for the first quarter of 2025. The company also suspended its earnings guidance for the rest of the year, but did estimate the new tariffs could cost the automaker about $1.5 billion.
Ford CEO Jim Farley said the company is getting stronger, including its quality efforts.
The company posted first-quarter revenue of $40.7 billion, a 5% decrease from $42.8 billion during the same period a year ago. Officials said the slide was a result of a reduction in wholesales stemming from a planned shutdown in certain plants related to new product launches and inventory rebalancing measures.
Ford’s net income was $471 million while adjusted earnings before interest and taxes was $1.0 billion. The net income, what the company essentially made after all of its expenses, was down from $1.3 billion last year.
Silver linings
Ford’s Model e business unit lost money in the first quarter as the company continues to invest in battery infrastructure.
Despite the tough start to the year, the company said its cash flow from operations in the first quarter was $3.7 billion, which was $2.3 billion better than Q1 2024. The company touted its cost-cutting efforts as being critical to the improvement.
“We are strengthening our underlying business with significantly better quality and our third straight quarter of year-over-year cost improvement, excluding the impact of tariffs,” said Ford President and CEO Jim Farley. “Ford Pro, our largest competitive advantage, is off to a strong start to the year, gaining market share in the most profitable U.S. and European customer segments.”
In all, Ford has $27 billion in cash and $45 billion in liquidity to help it endure the impact tariffs will have on the business. Farley’s already said he expects Ford will suffer less than other automakers because it produces more vehicle in the U.S. than the competition.
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Blue Oval silos
He also noted its Ford Pro business continues to be a profit center for the automaker. It generated $1.3 billion in EBIT, good for an 8.6% margin on $15.2 billion in revenue. The unit not only turns a profit, but it continues to grow with its subscription base rising 4% in the first quarter.
Ford is now offering employee pricing to all customers through July 6 as it looks to help consumers with the tariff-based price increases.
Ford Credit reported first-quarter earnings before taxes (EBT) of $580 million, up significantly compared to a year ago. In the quarter, Ford Credit paid a $200 million distribution to its parent.
“In the first quarter, Ford Blue reported $96 million in EBIT, down from a year ago due to expected volume decline and adverse exchange,” the company reports. “Segment revenue declined 3% to $21 billion. Iconic nameplates such as F-Series and Bronco, continue to lead their respective segments.”
The automaker’s EV business unit, Ford Model e, reported a first-quarter EBIT loss of $849 million.
“The segment remains focused on improving gross margins and exercising a disciplined approach to investments in battery facilities and next-generation products,” the company said. “U.S. retail sales grew 15% compared to a year ago as the Ford Power Promise campaign gave more customers access to home chargers and standard installation.”
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