Ford Has to Cut Dividend
Briefly

Ford Motor Co. had a dismal quarter, suspending its 2025 guidance due to uncertainty around tariffs and reporting a significant loss in adjusted EBIT, which is expected to be $1.5 billion lower than anticipated. Revenue fell to $40.7 billion and earnings per share plummeted from $33 to $0.12. Although the electric vehicle segment's losses decreased, the overall performance led to a sell-off, with shares down 20% year-on-year. Analysts express skepticism toward Ford’s future prospects amid increased competition and expected tariff costs, resulting in downgrades from notable firms like Goldman Sachs.
Ford Motor Co. reported disappointing earnings, suspending its 2025 guidance due to uncertainty around tariffs, with significant drops in revenue and adjusted EBIT.
CFO Sherry House stated the Ford+ plan is showing results, aiming for a higher growth, higher margin, and more capital efficient business, despite poor investor reception.
Ford faces a significant earnings risk from tariffs, even as its production remains strong in America, underscoring the struggles of U.S. automakers amid economic pressures.
Goldman Sachs downgraded Ford to Neutral, citing difficult cyclical dynamics, including tougher competition, declining consumer demand, and anticipated costs due to new tariffs.
Read at 24/7 Wall St.
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