01—Abstract
Summary
Summary of the 10-Q filed May 6, 2025. Cited figures are marked; the original filing is the authoritative source.
Ford Motor Company reported a significant decrease in net income for the first quarter of 2025, with net income attributable to Ford standing at $471 milliona, down from $1,332 million in the prior year's first quarter.
This decline was primarily driven by lower EBIT in the Ford Pro and Ford Blue segments, exacerbated by factors such as planned production downtime, dealer stock reductions, unfavorable exchange rates, and tariff-related costs. Despite these challenges, the Ford Model e segment showed improvement with a reduced EBIT loss, and the Ford Credit segment experienced an increase in Earnings Before Taxes (EBT). Total revenues also saw a decrease, falling to $40.7 billionb from $42.8 billion year-over-year.
The company is navigating a complex market environment characterized by evolving electric vehicle adoption rates, pricing pressures, and ongoing trade policy uncertainties, particularly concerning tariffs. Due to these material near-term risks, Ford has suspended its full-year 2025 guidance for adjusted EBIT, adjusted free cash flow, segment EBIT, and Ford Credit EBT, signaling caution amidst ongoing market volatility.
02—Key points
Key Highlights
- Net income attributable to Ford Motor Company decreased significantly to $471 million in Q1 2025, down from $1,332 million in Q1 2024.
- Total revenues declined to $40.7 billion in Q1 2025 from $42.8 billion in Q1 2024.
- Ford Pro segment EBIT decreased by $1.7 billion year-over-year, largely due to lower volume/mix and fleet pricing pressures.
- Ford Blue segment EBIT saw a substantial decrease of $805 million, impacted by lower volume, unfavorable exchange rates, and tariff costs.
- Ford Model e segment improved its EBIT loss by $478 million, driven by favorable net pricing and lower material costs.
- Ford Credit segment's EBT increased by $254 million, primarily due to higher financing margins and favorable volume/mix.
- The company suspended its full-year 2025 financial guidance due to material near-term risks, including trade policy uncertainties and EV market dynamics.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2025, Ford Motor Co kept $0.01.
- Revenue$40.66B100.0%
- Cost of revenue−$35.19B86.5%
- Gross profit$5.47B13.5%
- Operating costs−$5.15B12.7%
- Operating income$319.0M0.8%
- Interest, other & tax$154.0M0.4%
- Net income$473.0M1.2%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed May 6, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $40.66B$42.78B | −5.0% |
| Cost of Revenue | $35.19B$36.48B | −3.5% |
| Gross Profit | $5.47B$6.30B | −13.2% |
| SG&A Expenses | $2.43B$2.38B | +2.3% |
| Operating Expenses | $40.34B$41.55B | −2.9% |
| Operating Income | $319.00M$1.23B | −74.0% |
| Net Income | $473.00M$1.33B | −64.5% |
| EPS (Basic) | $0.12$0.33 | −63.6% |
| EPS (Diluted) | $0.12$0.33 | −63.6% |
| Shares Outstanding (Basic) | 3.97B3.98B | −0.3% |
| Shares Outstanding (Diluted) | 4.01B4.02B | −0.3% |
05—Questions
Frequently Asked Questions
What caused the significant drop in net income for Ford in the first quarter of 2025?
The significant drop in net income was primarily driven by lower earnings before interest and taxes (EBIT) in the Ford Pro and Ford Blue segments. This was influenced by planned production downtime, efforts to reduce dealer inventories, adverse foreign exchange rates, and increased costs related to tariffs. While the Ford Model e segment improved its loss, and Ford Credit's EBT increased, these positive movements were not enough to offset the declines in the other segments.
Why has Ford suspended its full-year 2025 financial guidance?
Ford suspended its full-year guidance due to significant near-term risks and uncertainties. These include potential disruptions from evolving trade policies and tariffs, fluctuating electric vehicle adoption rates and pricing pressures, and broader economic and geopolitical uncertainties. The company cited the difficulty in reliably forecasting financial impacts from these factors.
How did the Ford Credit segment perform in Q1 2025?
The Ford Credit segment showed positive performance, with Earnings Before Taxes (EBT) increasing by $254 million to $580 million in Q1 2025 compared to the prior year. This improvement was driven by higher financing margins, favorable volume and mix, and a positive valuation adjustment on derivatives, partially offset by increased credit losses.
What are the main challenges Ford is facing in the current market environment?
Ford is navigating several key challenges, including lower-than-anticipated electric vehicle (EV) adoption rates leading to pricing pressures, ongoing trade policy uncertainties and tariffs impacting costs and supply chains, and the need to manage production volumes and inventory levels amidst these market dynamics. The company also faces the ongoing complexity of its transition towards electrification while maintaining profitability in its traditional segments.
06—Continue