Ford's Q2 2025 earnings show strong performance, but tariffs expected to slow down sales

Ford published its Q2 earnings for this year, and the company beat analysts' expectations, recording $50.02 billion in revenue, way more than the predicted $43.75 billion. That's 5% year-on-year growth.

However, despite the revenue growth, Ford still posted a $36 million net loss. One of the main offenders is the company's Model E EV business, which lost $1.3 billion in Q2. Ford attributes that to "field service actions and expenses related to previously announced cancellations of an electric vehicle program", the newly imposed import tariffs by the Trump Administration and the investments in the upcoming EV battery plant in Michigan.

In contrast to the 31% EV sales drop, the total vehicle sales rose by 14%. The Mach-E recall and the changeover to the 2025 F-150 Lightning model year contributed to the poor EV sales.

Still, since Ford launched the Capri and the all-electric Explorer in Europe, the revenue from EV sales doubled to $2.4 billion.

Looking ahead, Ford warns that profits will take a hit due to the increasing costs from tariffs, even though Ford is the least impacted US company after Tesla. Ford imports only about 21% of its vehicles from outside the US and expects a $2.5 billion reduction in cash flow. GM, for example, imports 46% of its vehicles to the US, resulting in an impact of $4-5 billion.

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