Ford Model E saw rising losses despite a doubling of sales
Ford, the American automotive giant, reported its Q2 2025 financial results, revealing a net loss of $36 million on record revenue of $50.2 billion, marking a 5% increase from the previous year. Despite the Q2 EBIT loss of $1.3 billion (approximately €1.1 billion), the company remains steadfast in its commitment to electrification.
Operating cash flow for Q2 2025 stood at $6.3 billion, and adjusted free cash flow was $2.8 billion. For the full year, Ford now expects an adjusted EBIT of between 6.5 and 7.5 billion USD and an adjusted free cash flow of 3.5 to 4.5 billion USD.
The electric segment, while incurring an electric segment's EBIT loss of $179 million higher than the same period last year, showed signs of improvement. The electric segment's EBIT margin improved significantly, from -99.9% in Q2 2024 to -56.4% in Q2 2025.
Ford's Model e saw a 128% increase in wholesale volume, selling more electric vehicles in Q2 2025 than in the entire first half of the previous year. The total net impact of tariffs for 2025 is expected to be around two billion USD.
Despite the near-term challenges, Ford maintains roughly $9 billion in capital spending for 2025. This commitment to long-term EV development is underscored by the company's expectation of an adjusted EBIT of $6.5 to $7.5 billion for the year.
Ford's focus on electrification is evident in its upcoming initiatives. The company plans to unveil details about a new "breakthrough" electric vehicle and a low-cost EV platform at an event in Kentucky on August 11, 2025. This initiative is aimed at introducing more affordable electric vehicles, including a mid-size pickup truck expected by 2027, built on a new low-cost platform designed for both retail and commercial customers with personalized digital features.
CEO Jim Farley likened this strategic shift towards more accessible electric mobility to a new "Model T moment" for the company. Despite the widening operating losses of $1.3 billion in Q2 2025, driven by tariffs, launch costs at a new battery plant in Marshall, Michigan, and intense market competition, Ford remains optimistic about its future in the electric vehicle market.
Ford's CFO, John Lawler, stated that the company is transforming into a more growth-oriented, margin-rich, and sustainable company. Ford Pro, a division focused on commercial vehicles, is seen as a competitive advantage driving revenue and profit growth.
The upcoming EV lineup is expected to face stiff competition from rivals such as Tesla’s budget Model Y, GM’s Chevy Bolt revival, and Slate Auto’s low-cost pickup, all slated to debut by 2026-2027. The new EV platform, led by former Tesla executive Alan Clarke and experts from Tesla, Rivian, Apple, and Lucid Motors, aims to compete aggressively in this intensifying market.
Ford's segment revenue more than doubled to $2.4 billion (€2.1 billion) in Q2 2025 compared to the previous year, and first-half 2025 revenue grew 184% to $3.6 billion. The company will share more about its plans to develop and build groundbreaking electric vehicles in America on August 11.
The electric segment's revenue growth, as shown by a near 184% increase in first-half 2025 revenue compared to the previous year, indicates a significant shift towards the automotive industry's emerging finance sector focused on transportation and specifically, electrification. Ford's upcoming EV platform, with experts from various automotive and tech giants, is expected to compete in the finance-intensive transportation industry, aiming to offer affordable options like a mid-size pickup truck by 2027.
