Ford Adjusts Financial Guidance for 2025 - Sigmanomics

Ford Motor Company has pulled back its financial guidance for 2025. They expect a $1.5 billion drop in adjusted earnings before interest and taxes. This is due to the changing tariffs from the Trump administration.

Prior, Ford projected year-over-year operating profit between $7.0 billion and $8.5 billion for 2025. In the first quarter of 2025, Ford reported a 64 percent drop in net income. It fell to $471 million from $1.3 billion in the same period last year. At the same time, revenue witnessed a 5 percent falloff. Despite, earnings per share of 14 cent beat analysts expectations. Since then, 25 percent import duties affecting vehicles and parts manufactured in China and Mexico has changed that.

Not to overlook, the electric and software division continue to face challenges. Projected losses to date is $5.5 billion for the year. The company has also scaled back ambitions of electric vehicle ambitions – even canceling its FNV4 project.

The FNV4 (Fully Networked Vehicle 4) project was intended to unify software across its vehicle lineup. It was aimed to centralize software functions, facilitate over-the-air (OTA) updates and reduce wiring complexities. However, several factors lead to the cancellation of FNV4. Those include complex legacy systems, escalating costs and delays, and consumer demand paired with market dynamics.

The cancellation of the FNV4 displays broader challenges facing automakers that are seeking to transition to software-defined vehicles. As the industry progresses forward, Ford’s recent experience serves as a study of challenges and opportunities in the transformation of automotive manufacturing.

Source: Shutterstock
Granite, WA, USA – January 25, 2022: Ford Raptor driving around streets and dirt backroads
photo ID: 2157256447

Technical Analysis

Ford Weekly ChartSource: Sigmanomics.com

Ford’s (NYSE: F) stock price as of May 5, 2025 is at $10.17 per share. The price marks a 2.73 percent increase year-to-date.

Technical indicators present a mixed outlook, as market participants are anticipating breakouts to establish a directional bias. The stock is currently above its 50-day simple moving average (SMA) but below the 200-day SMA. The MACD on the weekly chart shows bullish momentum. However, its low value suggests that the trend may not be very strong.

Taking a look at the weekly chart of Ford, the asset as worked its way into a descending channel. Capped by $13.00 technical level, further losses are possible. Option traders will also monitor volume. In the past 20 days, volume is approximately 139 million shares, indicating strong investor interest. With the volume trend going down, the ceiling mentioned above will likely limit price action. Weakening momentum affects the stock’s ability to break resistance.

Written by Sigmanomics team

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