Strong segments and record revenue bolster Ford Motor shares after earnings report
Ford Motor Company posted a record Q2 2025 revenue, maintained its full-year forecast, and signalled the resilience of its key business segments despite the impact of tariffs, losses in its EV division, and one-off expenses.
Ford Motor Company (NYSE: F) reported record Q2 2025 revenue of 50.2 billion USD and reaffirmed its full-year guidance, expecting adjusted EBIT in the range of 6.5–7.5 billion USD. Operationally, the Ford Pro segment delivered strong profitability, generating approximately 2.3 billion USD in EBIT with a margin of 12.3%, while Model e doubled its revenue to 2.4 billion USD, yet still reported an EBIT loss of 1.3 billion USD.
Overall, the financial results were under pressure. Tariffs reduced quarterly profit by 800 million USD, and the full-year estimate of their impact was raised to 3 billion USD. Profit was also negatively affected by a 570 million USD vehicle recall and the cancellation of a new electric vehicle project, resulting in a modest GAAP net loss of 36 million USD.
Cash generation remained strong, with 6.3 billion USD from operating activities and 2.8 billion USD in adjusted free cash flow, supporting regular dividend payments.
The initial investor reaction to the report was negative, with shares opening down by 1%. The GAAP net loss and the increase in expected tariff costs to 3 billion USD heightened concerns over margins and the EV segment’s outlook, particularly given the Model e division’s loss.
However, a closer look at the report revealed that key operating segments such as Ford Pro and Ford Blue remain profitable, free cash flow is resilient, and liquidity is strong (28.4 billion USD in cash and 46.6 billion USD in total liquidity). This enables the company to maintain stable dividends and fund strategic projects. Adding to the positives, revenue hit a record 50.2 billion USD, while rising sales in the commercial segment and higher service income underscore the business’s long-term potential.
As a result, the initial short-term sell-off gave way to buying, and by the close of trading, shares had gained 2%, extending their rise in the following days.
This article covers Ford Motor Company’s business model and revenue sources, reviews the company’s quarterly results, and provides a fundamental analysis of the F ticker. It also presents expert forecasts for Ford shares in 2025, examines the stock’s recent performance, and offers a price outlook for Ford Motor Company shares in 2025.
About Ford Motor Company
Ford Motor Company was founded by Henry Ford in 1903 in the US. The company’s primary business activities involve designing, manufacturing, and marketing a wide range of vehicles, including passenger cars, trucks, SUVs, and commercial vehicles. Additionally, Ford is actively involved in the financial sector through its subsidiary, Ford Motor Credit Company, which offers car buyers leasing, lending, and other financial products.
The IPO occurred in 1956, making Ford the first automaker whose shares were traded on the New York Stock Exchange under the F ticker symbol. This opened up new opportunities for investors and facilitated the company’s continued growth and development.
Today, Ford continues to innovate in the automotive industry, focusing on electric vehicles and autonomous technologies while improving the environmental performance of its products in response to evolving market demands and existing trends.
Ford Motor Company’s main revenue streams
Ford divides its operations into key divisions and publishes financial results for each, except Ford Next, which has not yet generated income. Below are Ford’s main divisions and business areas:
- Ford Blue: traditional production of internal combustion engine vehicles (ICE) and hybrid vehicles. This represents the core of Ford’s business and includes the production and sale of classic models such as the Ford F-150, Ford Explorer, and Mustang
- Ford Pro: production of commercial vehicles and provision of related services. This division serves clients who use vehicles for business purposes
- Ford E: development and sale of electric vehicles (EVs) and innovative technologies. This department oversees models such as the Ford Mustang Mach-E and F-150 Lightning, and the development and promotion of new electric vehicle platforms
- Ford Next: developing new business models and innovative solutions beyond traditional automobile production. This unit is responsible for the research and development of autonomous driving technologies, new mobility formats, and other promising projects that may lay the foundation for the company’s further growth
- Ford Credit: the company’s financial division, which offers loan facilities to retail vehicle buyers and company dealers. The division’s operations include leasing, vehicle financing, and dealer financing for inventory replenishment
Ford Motor Company Q2 2024 report
Ford released the Q2 2024 financial results on 4 July 2024. Below are the report’s financial indicators:
- Revenue: 47.8 billion USD (+6%)
- Net profit: 1.8 billion USD (-6%)
- Earnings per share: 0.47 USD (-35%)
- EBIT: 1.2 billion USD (-48%)
- EBIT: 1.2 billion USD (-48%)
- Ford Pro revenue: 17.0 billion USD (+9%)
- EBIT: 2.6 billion USD (+8%)
- Ford Model e revenue: 1.1 billion USD (-37%)
- EBIT: -1.1 billion USD (unchanged)
- Ford Credit revenue: 3.0 billion USD (+20%)
- EBIT: 0.3 billion USD (-25%)
- Total vehicle sales: 536,050 pcs (+0.8%)
- Electric vehicles: 23,957 pcs (+61%)
- Hybrids: 53,822 pcs (+55%)
- ICE: 458,271 pcs (-0.5%)
The report shows that revenue growth was primarily driven by the Ford Pro division, which saw a 9% increase and achieved the highest margins compared to other divisions. Ford ranked second in US electric vehicle sales, behind Tesla (NASDAQ: TSLA), outperforming GM with 21,930 vehicles sold. However, unlike Tesla, Ford’s electric cars are not yet profitable, as reflected by the Ford E division’s loss of 1.1 billion USD. Consequently, Ford’s management decided to reduce production of the F-150 Lightning pickup truck and postpone 12.0 billion USD in electric vehicle development investments. Instead, the company is focusing on compact electric vehicles with higher margins. In this segment, Ford plans to compete with Tesla and the Chinese company BYD, which sells low-cost electric cars.
Ford Motor Company Q3 2024 report
Ford released its financial results for Q3 2024 on 29 October 2024. Below are the report’s key financial indicators:
- Revenue: 46.2 billion USD (+5%)
- Net profit: 0.9 billion USD (-25%)
- Earnings per share: 0.47 USD (-26%)
- EBIT: 1.6 billion USD (-5%)
- EBIT: 1.6 billion USD (-5%)
- Ford Pro revenue: 15.7 billion USD (+13%)
- EBIT: 1.8 billion USD (+9%)
- Ford E revenue: 1.2 billion USD (-33%)
- EBIT: -1.2 billion USD (compared to a loss of 1.3 billion USD a year earlier)
- Ford Credit revenue: 3.1 billion USD (+19%)
- EBIT: 0.5 billion USD (+25%)
- Total vehicle sales: 504,039 pcs (+1%)
- Electric vehicles: 23,509 pcs (+12%)
- Hybrids: 48,101 pcs (+38%)
- ICE: 432,429 pcs (-3%)
The report data shows that the company continues to face challenges with electric vehicle margins. Despite growth in EV sales, this segment remains unprofitable and requires ongoing investment, which has negatively affected net income, resulting in a 25% decline. However, the Ford Blue and Pro segments, which focus on internal combustion engine (ICE) cars and serve the commercial sector with after-sales service, are helping to mitigate these challenges. Ford Credit is another crucial division that supports the company during difficult times.
Ford Motor Company Q4 2024 report
Ford delivered its Q4 2024 financial results on 5 February 2025. Below are the report’s financial indicators:
- Revenue: 48.2 billion USD (+5%)
- Net profit: 1.8 billion USD (versus a loss of 0.5 billion USD a year earlier)
- Earnings per share: 0.45 USD (versus a loss of 0.13 USD a year earlier)
- EBIT: 1.6 billion USD (+100%)
- EBIT: 1.6 billion USD (+100%)
- Ford Pro revenue: 16.2 billion USD (+5%)
- EBIT: 1.6 billion USD (-11%)
- Ford E revenue: 1.4 billion USD (-12%)
- EBIT: -1.4 billion USD (versus a loss of 1.6 billion USD a year earlier)
- Ford Credit revenue: 3.3 billion USD (+6%)
- EBIT: 0.4 billion USD (+33%)
- Total vehicle sales: 530,660 pcs (+1%)
- Electric vehicles: 30,176 pcs (+16%)
- Hybrids: 47,082 pcs (+26%)
- ICE: 453,402 pcs (+7%)
The report reaffirmed that Ford continues to face challenges with electric vehicle margins, with the Ford E segment remaining unprofitable. However, the traditional business of selling internal combustion engine (ICE) vehicles continues to provide support.
Investors reacted negatively to the report, causing the stock price to drop by 7.5% after its release. The losses in the Ford E division were not a factor, as market participants have already accounted for its weak financial performance. Instead, concerns centred on the company’s 2025 outlook. Despite revenue growth to 48.2 billion USD and net income of 1.8 billion USD, Ford warned of a potential decline in adjusted EBIT to 7.0-8.5 billion USD in 2025, down from the 2024 figure of 10.2 billion USD. Another key concern was the possibility of a 25% import tariff on cars from Mexico and Canada, which could adversely affect Ford’s financial results, given the company’s reliance on Mexican plants for low-cost production.
Ford Motor Company Q1 2025 report
Ford published its financial results for Q1 2025 on 5 May. The key financial indicators from the report are as follows:
- Revenue: 40.7 billion USD (-5%)
- Net profit: 471 million USD (-65%)
- Earnings per share: 0.12 USD (-64%)
- EBIT: 96 million USD (-90%)
- EBIT: 96 million USD (-90%)
- Ford Pro revenue: 15.2 billion USD (+5%)
- EBIT: 1.3 billion USD (-57%)
- Ford E revenue: 1.2 billion USD (+5%)
- EBIT: -849 million USD (compared to a loss of 1.3 billion USD a year earlier)
- Ford Credit revenue: 3.2 billion USD (+6%)
- EBIT: 580 million USD (+78%)
- Total vehicle sales: 501,291 units (-2%)
- Electric vehicles: 22,550 units (+11%)
- Hybrids: 51,073 units (+33%)
- ICE: 427,668 units (-5%)
The Ford Q1 2025 report is mixed, reflecting the increasingly challenging macroeconomic environment for the automaker. Although the company exceeded analysts’ expectations by earning 471 million USD with revenue of 40.7 billion USD, this still represents a 65% decrease in net profit compared to the previous year. The 5% drop in revenue and supply chain issues, exacerbated by new US tariffs, have significantly impacted the final results. In response, Ford has suspended the publication of its annual forecast, warning of potential losses of up to 1.5 billion USD due to tariff-related costs. This is a concerning signal, particularly for investors who had counted on stable dividend yields. Amid the uncertainty, Ford might temporarily reduce or even suspend payouts.
Nevertheless, investors reacted moderately positively to the report – following its release, shares rose by 2.7%. This indicated confidence in the company’s ability to adapt, particularly as over 80% of vehicles sold in the US are assembled domestically, which mitigates the impact of tariffs.
Ford’s management expected the first half of the year to be challenging, with EBIT potentially close to zero. An improvement was anticipated in the second half through cost reductions and the launch of new models. However, the EV division remains unprofitable, with a loss of 5 to 5.5 billion USD expected for the full year 2025.
Overall, Ford demonstrated resilience, but investors face a choice: to back the company’s long-term recovery or to wait for greater clarity on tariff issues and the outlook for the EV segment.
Ford Motor Company Q2 2025 financial report
Ford released its financial results for Q2 2025 on 30 July 2025. Key figures from the report are as follows:
- Revenue: 50.18 billion USD (+5%)
- Net income: 1.50 billion USD (-21%)
- Earnings per share: 0.37 USD (-21%)
- EBIT: 661 million USD (-43%)
- EBIT: 661 million USD (-43%)
- Ford Pro revenue: 18.8 billion USD (+11%)
- EBIT: 2.31 billion USD (-10%)
- Ford Model e revenue: 2.4 billion USD (+100%)
- EBIT: -1.3 billion USD (compared with a loss of 1.15 billion USD a year earlier)
- Ford Credit revenue: 3.2 billion USD (+7%)
- EBIT: 645 million USD (+88%)
- Total vehicle sales: 612,095 units (+14%)
- Electric vehicles: 16,438 units (-31%)
- Hybrids: 66,438 units (+23%)
- Internal combustion engine (ICE) vehicles: 529,209 units (+15%)
Ford posted its Q2 2025 financial results with record revenue of 50.2 billion USD and adjusted EBIT of 2.1 billion USD, despite the adverse impact of tariffs amounting to 0.8 billion USD. On a GAAP basis, the company reported a net loss of 36 million USD, driven by special charges related to a 570 million USD vehicle recall and the cancellation of an electric vehicle program. Operating cash flow reached 6.3 billion USD, while adjusted free cash flow was 2.8 billion USD. The Board of Directors confirmed a quarterly dividend of 0.15 USD per share, payable on 2 September.
Management reinstated the full-year guidance, now expecting adjusted EBIT in the range of 6.5 to 7.5 billion USD and adjusted free cash flow between 3.5 and 4.5 billion USD, with capital expenditures around 9 billion USD. The net negative tariff impact is estimated at approximately 2 billion USD, reflecting a total effect of 3 billion USD, partly offset by cost-reduction measures of 1 billion USD.
By segment: Ford Pro recorded revenue of 18.8 billion USD with an EBIT margin of 12.3%, with paid software and service subscriptions rising 24% year-on-year to 757,000. Ford Model e revenue doubled to 2.4 billion USD, though the segment incurred an EBIT loss of 1.3 billion USD. Ford Blue reported EBIT of 661 million USD despite a 3% revenue decline.
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Key growth drivers and risk analysis for Ford Motor Company
Following the Q2 2025 earnings release, several challenges have emerged for Ford, with the main ones outlined below:
- Tariffs: they exerted greater pressure than anticipated – the company raised its estimated 2025 tariff-related costs to 3 billion USD. However, approximately 1 billion USD was partially offset by other factors, resulting in a net negative tariff impact of around 2 billion USD in the annual forecast
- Write-offs and vehicle recalls: the company recognised charges related to a major service campaign and the cancellation of an EV program. It incurred approximately 570 million USD in expenses due to the recall of around 700,000 vehicles for a fuel leakage risk. In early August, a new recall was announced that affected roughly 312,000 pickups and SUVs. Overall, Ford has set a record number of recalls in 2025 to date, placing pressure on warranty costs and reducing company margins
- Electric vehicles: the EV business remains deeply unprofitable. The Model e segment again posted a quarterly EBIT loss of 1.33 billion USD on revenue of 2.4 billion USD. Management continues to discuss the next generation and cost reductions, but the market currently prices in a multibillion-dollar loss from EVs for 2025
- Price and margin pressure: to maintain sales volumes, Ford has increasingly relied on discounts, which support revenue but erode profitability, especially in the Blue segment. Blue’s margin fell to 2.6% this quarter from 4.4% a year earlier, while Ford Pro’s margin declined to 12.3% from 15.1%.
Summary: the key issues facing Ford Motor Company are tariffs and the resulting forecast uncertainty, ongoing quality challenges with a record volume of recalls, and significant losses from first-generation electric vehicles amid strong competition and price pressure in the mass market.
The main growth drivers that could improve Ford’s financial position include:
- Ford Pro: a key profit driver, with high-margin services and software currently contributing about 17% of EBIT (TTM), paid subscriptions increasing by 24% year on year to 757,000, and average revenue per user (ARPU) also rising by 24%. This helps sustain segment margins despite pricing pressure
- Acceleration of hybrid strategy: record sales of hybrid models in H1 2025, including the Maverick Hybrid and F-150 Hybrid, provide a more margin-friendly product mix compared to fully electric vehicles
- Subscriptions and advanced driver-assistance systems (ADAS): The growing fleet of vehicles equipped with BlueCruise creates a stable stream of recurring payments, expected to increase as the number of connected vehicles expands
- Regulatory support: updated EPA standards have already reduced Ford’s need to purchase carbon credits by nearly 1.5 billion USD. According to the CEO, this could unlock multibillion-dollar profit opportunities for the Blue division over the next two years
- Cost control and capital reallocation: The company plans to save approximately 1 billion USD in 2025 through expense optimisation (excluding tariffs). Material cost savings are expected to continue into 2026. Resources are being redirected from future EV projects towards Ford Pro and services
- Ford Credit: pre-tax profit in Q2 reached 645 million USD (+88% YoY), supporting overall profitability and cash flow, which helps finance dividends and capital expenditures without an excessive debt burden. This segment is in excellent shape
- New EV strategy: a focus on an affordable next-generation platform with local production of LFP batteries in Michigan and an emphasis on compact EVs improves the chances of achieving profitability in this line
- Quality and warranty cost reduction: management notes the best quality launch of recent models in a decade, expands the use of over-the-air (OTA) updates, and implements AI to track parts and minimise recall volumes. This directly reduces warranty service costs and improves margins
Conclusion: Ford relies on growth in Ford Pro and service revenues, accelerated hybrid adoption instead of costly EVs, warranty cost reduction, and stringent cost control. This combination should help offset tariff-related headwinds and improve free cash flow in 2025–2026.
Fundamental analysis of Ford Motor Company
Ford’s Q2 2025 report reflects mixed dynamics across key indicators. The company recorded a record revenue of 50.2 billion USD and an adjusted operating profit of 2.1 billion USD. However, due to one-off expenses, it posted a small accounting loss of 36 million USD. Cash generated from core operations was strong at 6.3 billion USD, with free cash flow reaching 2.8 billion USD. For the year, the company is forecasting an operating profit of 6.5–7.5 billion USD and free cash flow of 3.5–4.5 billion USD, while maintaining the dividend at 0.15 USD per quarter.
Liquidity resilience is evident. Ford, excluding its financial division, Ford Credit, holds 28.4 billion USD in cash, with debt amounting to 20.3 billion USD, resulting in a net positive position of approximately 8.1 billion USD.
Supporting the business is the Ford Pro segment for commercial clients, which generates strong earnings and accounts for the lion’s share of profit. Cash flows from Ford Credit also help cover dividends and smooth out weaker areas. Free cash flow is sufficient to pay dividends and finance the transition to a new line of electric vehicles, even considering losses from the current generation of EVs and tariff pressures.
Risks that cannot be ignored include losses in the electric segment, increased warranty costs, and the impact of tariffs. The automotive industry is inherently cyclical, capital-intensive, and highly competitive. Therefore, having a margin of safety on the share price is important.
Conclusion: at around 11 USD per share, the stock appears neutral or slightly undervalued, assuming the company meets its free cash flow targets and maintains the high efficiency of Ford Pro. With a cautious approach to timing entry points and building in a margin of safety of 25–30%, a comfortable buying zone lies closer to 7–8 USD. For a more aggressive strategy, overlooking the cyclicality of the automotive business and focusing on cash flow, it makes sense to wait for pullbacks into the range below 9–10 USD.
Expert forecasts for Ford Motor Company stock for 2025
- Barchart: 3 out of 24 analysts rated Ford Motor Company’s shares as Strong Buy, 15 as Hold, 2 as Sell, and 4 as Strong Sell. The highest price target reaches 14 USD, with the lowest target at 8 USD
- MarketBeat: 2 out of 17 experts assigned a Buy rating, 12 recommended Hold, and 3 advised Sell. The upper price target reaches 15.50 USD, with the lowest target at 7 USD
- TipRanks: 3 out of 14 surveyed gave the shares a Buy rating, 8 recommended Hold, and 3 Sell. The upper price target reaches 14 USD, with the lowest target at 8 USD
- Stock Analysis: 1 out of 15 experts rated the shares as a Strong Buy, 1 as a Buy, 9 as a Hold, and 4 as Sell. The upper price target reaches 14 USD, with the lowest target at 7 USD
Ford Motor Company stock price forecast for 2025
On the weekly chart, Ford shares have traded within a range between 8.60 and 13.00 USD since 2022. In April 2025, the F share price briefly broke below the lower boundary of this range, resulting in a MACD convergence signalling a potential price increase. As a result, Ford shares rose by 35% from April to August. Following the quarterly earnings release, demand for the automaker’s shares remained strong, increasing the likelihood of further price appreciation. Based on the recent performance of Ford Motor Company shares, the potential price movements in 2025 are as follows:
The primary forecast for Ford Motor Company shares anticipates a rise towards the upper boundary of the sideways range at 13.00 USD. If Ford continues to demonstrate monthly vehicle sales growth and reports of new recall campaigns cease, there is a strong likelihood that resistance at 13.00 USD will be breached, with the next upside target at 19.90 USD.
An alternative scenario for the Ford Motor Company share price forecast involves a break of support at 10.60 USD. In this case, Ford shares could decline to the lower boundary of the range at 8.60 USD and continue trading sideways between 8.60 and 13.00 USD.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.