10-QPeriod: Q1 FY2025

FORD MOTOR CO Quarterly Report for Q1 Ended Mar 31, 2025

Filed May 6, 2025For Securities:FF-PCF-PDF-PB

Summary

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 million, 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 billion 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.

Financial Highlights

50 data points
Beta

Revenue

$40.66B

13.5% Gross Margin

Net Income

$473.00M

1.2% Net Margin

EPS (Diluted)

$0.12

Total Assets

$284.54B

Cash & Equivalents

$20.86B

Free Cash Flow

$3.68B

Financial Statements
Beta
Revenue$40.66B
Cost of Revenue$35.19B
Gross Profit$5.47B
SG&A Expenses$2.43B
Operating Expenses$40.34B
Operating Income$319.00M
Net Income$473.00M
EPS (Basic)$0.12
EPS (Diluted)$0.12
Shares Outstanding (Basic)3.97B
Shares Outstanding (Diluted)4.01B

Key Highlights

  • 1Net income attributable to Ford Motor Company decreased significantly to $471 million in Q1 2025, down from $1,332 million in Q1 2024.
  • 2Total revenues declined to $40.7 billion in Q1 2025 from $42.8 billion in Q1 2024.
  • 3Ford Pro segment EBIT decreased by $1.7 billion year-over-year, largely due to lower volume/mix and fleet pricing pressures.
  • 4Ford Blue segment EBIT saw a substantial decrease of $805 million, impacted by lower volume, unfavorable exchange rates, and tariff costs.
  • 5Ford Model e segment improved its EBIT loss by $478 million, driven by favorable net pricing and lower material costs.
  • 6Ford Credit segment's EBT increased by $254 million, primarily due to higher financing margins and favorable volume/mix.
  • 7The company suspended its full-year 2025 financial guidance due to material near-term risks, including trade policy uncertainties and EV market dynamics.

Frequently Asked Questions

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.

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.

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.

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.