Ford Motor Co. reported stronger-than-expected first-quarter earnings but saw its stock fall in after-hours trading due to a warning about a significant profit hit from tariffs. The company posted an adjusted operating profit of $1 billion, or 14 cents per share, on revenue of $40.7 billion. This beat Wall Street estimates of $171 million in profit and break-even earnings on $38 billion in sales.
Despite this beat, Ford’s stock declined 2.7% to $9.90 in after-hours trading. CFO Sherry House said the company is “focusing on managing what we can control,” noting improvements in Ford’s core business. However, due to potential tariff impacts, Ford has suspended its full-year financial guidance, projecting a $1.5 billion reduction in operating profit from the new trade levies.
Ford is considered better positioned than most traditional automakers to absorb U.S. auto tariffs, with over 80% of its domestic vehicle sales being U.S.-assembled. Strategies to mitigate tariff costs include using bonded carriers for imports and halting exports to China. 
Still, the financial impact is notable. The projected $1.5 billion loss is about 19% of Ford’s previous guidance midpoint of $7.8 billion in annual operating profit. For comparison, General Motors revised its guidance due to a $4 billion–$5 billion hit from tariffs, lowering its expected operating profit by 23%.
Ford had cautioned in February that the first quarter would be relatively weak due to fewer wholesale sales and a less favorable product mix. However, strong dealer demand, partly driven by efforts to get ahead of tariffs, boosted sales and helped the company surpass expectations.
Currently, about 50% of new vehicles sold in the U.S. are imports, subject to 25% tariffs. Ford only imports around 20% of the cars it sells domestically, but it, like other automakers, still faces costs from tariffs on imported parts.
While recent policy changes by President Trump reduced overlapping tariffs and slightly eased burdens on imported parts, the overall impact on the industry remains substantial. Ford’s management is expected to update its financial outlook in the summer.
Ford shares are up 4% in 2025, outperforming competitors. In contrast, GM stock is down 15% and Stellantis has declined 27%.
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