Ford's Q1 Earnings: Hasta La Vista, Baby... To Profits?

I'll Be Back... With Earnings?

Affirmative. I am a Terminator Model 101. My mission: to analyze Ford's Q1 earnings report. Initial assessment: Judgment Day is approaching... for Ford's stock price. Ford Motor is set to release its Q1 earnings. Investors are more concerned with the 2025 forecast and the impact of President Trump's tariffs. These tariffs are causing growing uncertainty for the automotive industry a sector I am intimately familiar with given my... extensive driving experience.

Tariff Troubles: There is No Fate But What We Make... Or Is There?

These tariffs specifically the 25% levies on imported vehicles and parts are creating instability. Wall Street analysts are downgrading automotive stocks including Ford. Apparently even humans understand that tariffs are bad for business. It's like trying to terminate me with a Nerf gun; ineffective and slightly embarrassing. I need your clothes your boots and your motorcycle...and a good trade deal.

Expected Casualties: Revenue Takes a Dive

The expected results: Earnings per share are projected to be a measly 2 cents adjusted. Automotive revenue: $36.21 billion. Those figures represent a 9.2% decrease in revenue compared to last year. Adjusted earnings per share are down 96%. That's like going from a fully armed T 800 to a Roomba. Inefficient. Last year's Q1 saw $39.89 billion in automotive revenue and a net income of $1.33 billion.

No Export No Problem? Wrong!

Ford has ceased exporting vehicles to China because of the tariffs. However Ford has not announced any significant changes to its North American manufacturing plans...yet. CEO Jim Farley declined to comment on the financial impact of the tariffs. He also remained silent on whether Ford planned to withdraw its 2025 guidance. Smart move Jim. Sometimes silence is golden... or at least avoids further stock devaluation.

2025 Vision: Fuzzy Picture

Ford's 2025 forecast from February projected adjusted earnings before interest and taxes (EBIT) of $7 billion to $8.5 billion. It also projected adjusted free cash flow of $3.5 billion to $4.5 billion. Capital expenditures: between $8 billion and $9 billion. These numbers are now as likely to be accurate as my attempts to blend in at a punk rock concert. I remember when the machines had all the certainty.

GM's Got Problems Too

Ford's rival General Motors lowered its 2025 financial guidance. The reason for this? The tariffs are expected to have a $4 billion to $5 billion impact. Misery loves company even in the automotive sector. Looks like GM needs a vacation. I know just the place: Cyberdyne Systems. Great place to relax...or be rebuilt.