0000037996-25-000147
SEC filingFord's Q2 2025 net loss of $36M was driven by $1.3B in special items, masking a 4.3% adjusted EBIT margin.
In the second quarter of 2025, Ford reported a net loss attributable to the company of $36 million, a dramatic swing from net income of $1.83 billion in the same period last year. The decline was driven by $1.3 billion in pre-tax special item charges, including a $571 million fuel injector field service action, $308 million in expenses from the cancellation of an all-electric three-row SUV program, and $394 million in equity method investment impairments and asset write-downs. Revenue rose 5% year-over-year to $50.2 billion, but the GAAP net income margin fell to negative 0.1% from 3.8%. On an adjusted basis, Company adjusted EBIT declined 22% to $2.14 billion, with adjusted EBIT margin contracting 150 basis points to 4.3%. Diluted EPS was a loss of $0.01, compared to earnings of $0.46 a year ago; adjusted diluted EPS was $0.37, down from $0.47.
Ford Blue segment EBIT fell 43% to $661 million on a 3% revenue decline to $25.8 billion, as lower wholesale volumes (down 6%) and unfavorable exchange more than offset cost reductions and favorable net pricing. Ford Model e EBIT loss widened to $1.33 billion (negative 56.4% margin) despite a 131% surge in wholesales to 60,000 units, driven by tariff-related costs, volume-related manufacturing costs, and adverse net pricing. Ford Pro remained the profit engine with EBIT of $2.32 billion (12.3% margin), down $244 million year-over-year, as higher volume from daily rental and Transit family vehicles was offset by unfavorable fleet pricing and tariff costs. Ford Credit delivered a standout performance, with EBT rising 88% to $645 million, driven by higher financing margin and a favorable derivative market valuation adjustment, partially offset by an accrual related to a UK dealer commission review.
For full-year 2025, management guided adjusted EBIT of $6.5 billion to $7.5 billion and adjusted free cash flow of $3.5 billion to $4.5 billion, with capital spending of about $9 billion. The outlook assumes U.S. industry sales of 16.0-16.5 million units, flat industry pricing, a net cost improvement of $1 billion (excluding tariffs), and a net tariff headwind of about $2 billion (gross adverse impact of $3 billion offset by $1 billion in recovery actions). The company noted that tariffs implemented to date have caused significant disruption and increased costs, and that sustained tariffs would have a significant adverse effect on the automotive industry and Ford. Ford also highlighted ongoing adjustments to its EV strategy, including the cancellation of an all-electric three-row SUV program, and expects to incur additional expenses and cash expenditures of about $1.5 billion related to that cancellation.
As of June 30, 2025, Ford held $23.0B in cash and cash equivalents and $14.5B in marketable securities, totaling $37.5B. Total debt stood at $157.7B ($20.3B Company excluding Ford Credit, $137.4B Ford Credit). Equity attributable to Ford was $45.1B. Inventories increased to $17.3B from $14.95B at year-end 2024, driven by higher in-transit and in-plant stock. Deferred revenue (primarily extended service contracts) was $5.8B. The current ratio (current assets/current liabilities) was 1.10, reflecting a strong liquidity position.
Note 18 details warranties and guarantees. Warranty and field service action obligations totaled $16.2B as of June 30, 2025, up from $14.0B at year-end, including a $571M charge in Q2 for a fuel injector field service action. Financial guarantees had a maximum potential payment of $5.4B, with a carrying value of $109M. Additionally, Ford guarantees its 50% share of BOSK’s DOE loan; as of June 30, total capital contributions to BOSK were $2.6B against a $6.6B commitment. No other explicit purchase commitments were disclosed beyond these guarantees and warranty accruals.
Ford allocated $3.9B to capital spending in the first half (4.3% of revenue), down from $4.2B in the prior year. Dividends totaled $1.8B, with a quarterly regular dividend of $0.15 per share and a supplemental $0.15 paid in Q1. No share repurchases occurred during the first half, compared to $244M in the prior-year period. Net debt change was -$5.5B, primarily driven by $24.8B in long-term debt repayments partially offset by $20.5B in issuances. Ford Credit’s debt structure remains stable, with $137.4B total debt and fair value approximating $139.1B.
In Q2 2025, Ford Pro led segment profitability with $2.3B EBIT and a 12.3% margin, driven by strong commercial vehicle demand. Ford Blue generated $661M EBIT (1.7% margin), reflecting lower volumes and pricing pressures. Ford Model e posted a $1.3B EBIT loss, widened from a $1.15B loss a year ago, as EV investments and low scale weigh on results. Ford Credit’s EBT rose to $645M from $343M, aided by higher financing and leasing income. Geographic mix not detailed at segment level, but Ford Pro operates in North America and Europe, Ford Blue globally, and Ford Model e in select markets. Total company external revenue grew 4.9% YoY, with Ford Model e revenue doubling as EV sales ramp.