Ford reports Q2 earnings beat but takes $800M tariff hit
Ford Q2 2025 Earnings Press Release
Ford Reports Second Quarter 2025 Financial Results
• Second-quarter revenue reached a record $50.2 billion; incurred a net loss of $36 million as a result of special items
• Adjusted EBIT was $2.1 billion, including $0.8 billion of adverse net tariff-related impacts; operating cash flow was $6.3 billion, adjusted free cash flow was $2.8 billion
• Company declares a third quarter regular dividend of 15 cents per share
• Reinstated full-year 2025 guidance includes adjusted EBIT of $6.5 billion to $7.5 billion, adjusted free cash flow of $3.5 billion to $4.5 billion, capital spending of about $9 billion, and a net tariff-related headwind of about $2 billion
So lots of reading into things-Here is a transcript from the earnings call:
https://www.investing.com/news/transcripts/earnings-call-transcript-fords-q2-2025-earnings-surpass-expectations-93CH-4161537
Is the single line that everyone is reading into
It’s a little confusing depending on which source one reads. Some sources report Ford is revealing plans, not a vehicle, though a meeting for just that doesn’t make much sense IMO. Not competing in mass market against South Korean and Japanese brands, but rather sticking to trucks and SUVs seems even more significant to me. So much for low-cost vehicles, particularly cars. Should listen to earnings call for full context but will just wait until 11th.
https://electrek.co/2025/07/30/ford-says-breakthrough-evs-coming-to-the-us/
I have my expectations set really low on this-I hope they can pull it off.
IMO for it to be successful, it needs to hit the following:
Starting price around 30K
300 mile range no more then 40K
Offer the same usability as the Escape/Maverick and look good
Even with that I wonder how strong the demand will be with all the changes with EV credits etc recently.
Maybe the Cybertruck has eased the thoughts of radical design, anything after that angled paradox
is going to look respectable. I’m changing my POV to cautious but wonder if America is now ready…
Not a model T moment, I’d call it more like a Taurus moment, different enough to swat the competition.
Or both, depending on who you ask. The problem with radical designs is that they can be polarizing, so some may love it while others hate it. The fact that Farley can’t predict reaction suggests to me it’s quite unusual. Let’s hope majority like it.