Ford Reports Q1 2025 Financial Results with Revenue Decline and Caution on Outlook

Ford Motor Company reported its financial results for the first quarter of 2025, revealing a total revenue of $40.7 billion, a decrease of 5% from $42.8 billion in the same period last year. The company's net income attributable to Ford was $471 million, down from $1.3 billion in the first quarter of 2024. This decline in profitability was reflected in the diluted earnings per share, which fell to $0.12 from $0.33 year-over-year. The adjusted EBIT for the quarter was $1.02 billion, significantly lower than the $2.76 billion reported in the prior year.

The filing highlighted several operational changes and strategic developments. Ford's revenue from its Ford Blue segment, which focuses on traditional internal combustion engine vehicles, decreased to $21 billion, while the Ford Model e segment, dedicated to electric vehicles, saw a revenue increase to $1.24 billion, driven by new product launches. However, the Ford Pro segment, which serves commercial customers, experienced a revenue drop to $15.2 billion, attributed to planned production downtime and reduced fleet pricing. The company also noted a significant increase in its inventory levels, which rose to $17.9 billion from $14.9 billion at the end of 2024.

In terms of operational metrics, Ford's total cash, cash equivalents, and marketable securities stood at $35.4 billion as of March 31, 2025. The company maintained a strong liquidity position, with $27.1 billion in cash and $45.3 billion in total liquidity. However, the company’s adjusted free cash flow was negative $1.5 billion, reflecting challenges in managing working capital and capital expenditures, which were $1.8 billion for the quarter. The company also reported a decrease in its employee headcount, reflecting ongoing restructuring efforts.

Looking ahead, Ford expressed caution regarding its outlook, particularly due to uncertainties surrounding trade policies and tariffs, which are expected to have a gross adverse adjusted EBIT impact of approximately $2.5 billion for the full year. The company has suspended its full-year guidance for adjusted EBIT and adjusted free cash flow, citing the potential for industry-wide supply chain disruptions and the impact of tariffs on production costs. Ford's management emphasized the need to adapt its strategies in response to evolving market conditions, particularly in the electric vehicle sector, where adoption rates have been slower than anticipated.