Ford Model e losses widen despite doubling revenue in Q2/2025

Ford’s electric vehicle division, Ford Model e, recorded a second-quarter EBIT loss of $1.3 billion in 2025, according to the company’s financial results. Despite this, revenue for the segment doubled year-on-year to $2.4 billion, driven by increased sales volumes and growing momentum behind its electrification strategy.

The EBIT loss for the EV segment in Q2 was $179 million deeper than in the same period last year and reflects a combination of tariff-related costs, strategic investment in next-generation EVs, and expenses tied to the startup of Ford’s new battery manufacturing facility in Marshall, Michigan. In the first half of 2025, Model e’s total losses amounted to approximately $2.2 billion.

The Ford Model e segment saw wholesale volumes rise from 26,000 to 60,000 units year-over-year, a 128% increase. Revenue for the first half of 2025 climbed 184% to $3.6 billion. While EBIT for first-generation EVs—the Mustang Mach-E and F-150 Lightning—was flat year-over-year when excluding tariff impacts, Ford highlighted improvements in operating leverage and cost reductions.

“Ford Pro is a unique competitive advantage driving both top and bottom-line growth […] and we continue to improve the efficiency of our Ford Model e business,” said Ford CEO Jim Farley. “We have scheduled an event on Aug. 11 in Kentucky where we will share more about our plans to design and build breakthrough electric vehicles in America.”

Ford Model e’s EBIT margin improved to -56.4% in Q2 2025, compared to -99.9% in Q2 2024. This gain, while still deeply negative, marks a significant shift as the company aims to narrow losses through scaling and product refinement.

Company-wide, Ford reported a net loss of $36 million for the quarter on record revenue of $50.2 billion, up 5% year-over-year. Adjusted EBIT for the quarter stood at $2.1 billion, including $800 million in net tariff-related impacts. Operating cash flow reached $6.3 billion, with adjusted free cash flow at $2.8 billion.

Ford reaffirmed its commitment to investing in electrification, maintaining capital spending guidance at approximately $9 billion for 2025. CFO Sherry House said, “Our balance sheet keeps getting stronger, further enabling our ability to invest in areas of strength. We are remaking Ford into a higher-growth, higher-margin and more durable business.”

For the full year, Ford now expects adjusted EBIT between $6.5 billion and $7.5 billion and adjusted free cash flow of $3.5 billion to $4.5 billion. While the latter remains unchanged compared to what the carmaker communicated in February, the outlook for the adjusted EBIT has been reduced from initially 7 – 8.5 billion dollars to now 6.5 – 7.5 billion dollars. Moreover, the company confirmed that the net tariff-related headwind for 2025 is expected to total around $2 billion.

The Model e division EBIT has always been in the red. In its annual review of 2024, Ford stated that it did not expect a turnaround for 2025 either. According to the annual forecast presented at the time, the division was expected to make a loss of USD 5 to 5.5 billion this year. Nevertheless, as mentioned above, the carmaker plans to give further details about its upcoming electric vehicle initiatives at an event in the US state of Kentucky on 11 August. 

ford.com (earnings presentation; PDF), ford.com (press release; PDF)