What changed in this filing

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Item 1. Financial Statements

2025-07-31 compared with 2025-05-06 · 181 added, 135 removed, 494 unchanged (39% of the section changed)

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SEGMENT INFORMATION (Continued)

Key financial information for the periods ended or at March 31 was as follows (in millions):

Key financial information for the periods ended or at June 30 was as follows (in millions):

Ford Blue Ford

Model e Ford Pro Ford Credit Unallocated Amounts and Eliminations (a) Total

First Quarter 2024

First Half 2024

External revenues $ 48,424 $ 1,266 $ 35,007 $ 5,884 $ 4 $ 90,585

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Interest on debt (excludes $ 3,745 of Ford Credit interest on debt)

Special items (d) ( 873 )

Special items (g) ( 922 )

Income/(Loss) before income taxes $ 4,050

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Cash outflow for capital spending (e) 2,100 1,948 17 43 86 4,194

Total assets 61,416 15,032 3,659 148,896 45,338 274,341

First Quarter 2025

First Half 2025

External revenues $ 46,781 $ 3,599 $ 33,978 $ 6,478 $ 7 $ 90,843

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Cash outflow for capital spending (e) 2,050 1,713 23 62 58 3,906

Total assets 62,772 16,181 3,664 154,183 47,739 284,539

(a) Unallocated amounts include Corporate Other (see above description of corporate expenses and corporate assets) and Special Items.

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material costs (including commodities and components and purchased vehicles from partners), manufacturing costs (including hourly and salaried wages and fringe, and plant overhead such as utilities and taxes), warranty coverages and field service action costs (including estimated costs to repair, replace, or adjust parts on a vehicle that are defective in factory supplied materials or workmanship), freight and duty costs (including related to the receiving and shipping of components and vehicles), vehicle and software engineering and connectivity costs (including wages and fringe for personnel, prototype materials, testing, and outside services), spending-related costs (including depreciation and amortization of manufacturing and engineering assets, asset retirements, and operating leases), advertising and sales promotions costs (including costs for advertising, marketing programs, brand promotions, customer mailings and promotional events, and auto shows), and administrative, IT, and selling costs (primarily including wages and fringe for salaried personnel and purchased services).

Other segment items for the Ford Credit segment primarily consists of interest expense and depreciation.

(d) Primarily reflects restructuring actions in Europe, the extended duration of the EV program changeover at the Oakville Assembly Plant, and buyouts for hourly employees in North America.

(e) Ford Blue includes $ 223 million and $ 163 million of spending attributable to electric vehicles at shared manufacturing plants at March 31, 2024 and March 31, 2025, respectively.

Total electric vehicle spending, including Ford Blue and Ford Model e, was $ 1,198 million and $ 924 million at March 31, 2024 and March 31, 2025, respectively.

(f) Primarily reflects the cancellation of a previously planned all-electric three-row SUV program and continued ongoing restructuring actions in Europe.

Other segment items for Ford Credit primarily consists of interest expense and depreciation.

(d) Primarily reflects restructuring actions in Europe (which triggered remeasurement of certain European pension plans) and updated assumptions for the duration of the Oakville Assembly Plant changeover, which is now shorter than originally planned.

(e) Ford Blue recognized $ 248 million and $ 195 million of spending attributable to electric vehicles at shared manufacturing plants during the second quarter of 2024 and 2025, respectively, and $ 471 million and $ 358 million in the first half of 2024 and 2025, respectively.

Total electric vehicle spending, including Ford Blue and Ford Model e, was $ 1,221 million and $ 1,147 million during the second quarter of 2024 and 2025, respectively, and $ 2,419 million and $ 2,071 million in the first half of 2024 and 2025, respectively.

(f) Primarily reflects a field service action for fuel injectors, our share of equity method investment asset impairments and write downs and other expenses, and charges related to the cancellation of a previously planned all-electric three-row SUV program and resulting actions.

(g) Primarily reflects restructuring actions in Europe, buyouts for hourly employees in North America, and the extended duration of the Oakville Assembly Plant changeover.

Management’s Discussion and Analysis of Financial Condition and Results of Operations.

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To the extent governments in various regions implement or intensify barriers to trade, such as erecting tariff or non-tariff barriers, implementing export controls, or manipulating their currency to provide advantages to domestic companies, there can be a significant negative impact on manufacturers based in other markets.

Tariffs implemented to date in the United States and elsewhere have caused significant disruption, increased costs, and uncertainty in the automotive industry, including for Ford, other OEMs, suppliers, and dealers, as well as customers.

Tariffs implemented to date in the United States and elsewhere have caused significant disruption, increased costs (both directly and indirectly), and uncertainty in the automotive industry, including for Ford, other OEMs, suppliers, and dealers, as well as customers.

Moreover, tariffs implemented in the United States and elsewhere in the future may exacerbate these impacts.

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Tariffs have affected and will continue to affect all OEMs, to various degrees.

In the first quarter of 2025, Ford’s costs related to tariffs implemented or increased in 2025 were about $200 million.

Although there is uncertainty regarding the application, scope, and duration of tariffs, those that have been implemented and any additional tariffs or other measures that are implemented in the United States and retaliatory tariffs or other measures or restrictions that are implemented by other governments and the potential related market impacts, should they be sustained for an extended period of time, would have a significant adverse effect, including both operationally and financially, on the overall automotive industry, Ford, and our supply chain in 2025 and potentially beyond.

In the second quarter of 2025, Ford’s net EBIT impact related to tariffs implemented or revised in 2025 was about $800 million, including the impact of preferential tariff treatment and import adjustment offset amounts.

These offsets are subject to periodic approval by the U.S.

Department of Commerce and may be revised based on ultimate production and import levels.

Although there is uncertainty regarding the application, scope, duration, and timing for implementation of tariffs (including related offsets), those that have been implemented and any additional tariffs or other measures that are implemented in the United States and retaliatory tariffs or other measures or restrictions that are implemented by other governments and the potential related market impacts, should they be sustained for an extended period of time, would have a significant adverse effect, including both operationally and financially, on the overall automotive industry, Ford, and our supply chain in 2025 and beyond.

For additional information regarding the impact and potential impact of trade policy and tariffs on our business, see the Outlook section on page 55 of this 10-Q Report and Item 1A.

Risk Factors in our 2024 Form 10-K Report as updated by Item 1A.

Risk Factors on page 65 of this 10-Q Report.

Risk Factors in our Quarterly Report on Form 10-Q for the period ended March 31, 2025.

Electric Vehicle Market

Although we continue to invest in our electric vehicle strategy, we have observed lower-than-anticipated industrywide electric vehicle adoption rates and near-term pricing pressures, which has led us, and may in the future lead us, to adjust our investments, spending, production, and/or product or future technology launches to better match the pace of electric vehicle adoption.

We previously announced the cancellation of an all-electric three-row SUV program.

In addition to incurring expenses of $1.3 billion through the first quarter of 2025 for the cancellation of that program and for which we may continue to incur expenses, the impact of that cancellation has resulted in changes to future technology and product launches, for which we have incurred and may continue to incur additional expenses.

In the second quarter of 2025, we recorded $308 million of expenses related to the program cancellation and resulting actions.

We may incur additional expenses and cash expenditures of about $1.5 billion and will reflect those in the quarter they are incurred as a special item.

Further, significant unexpected changes in the EV demand environment have led, and may in the future lead, to incremental competitive pricing actions, and we may continue to incur expenses related to payments to our electric vehicle-related suppliers (battery, raw material, or otherwise), asset write-downs, or other matters.

These market dynamics may continue to occur, which could have a substantial impact on our business, including our investments in supply and production capacity.

In addition, policy change in the United States could reduce or eliminate supply- and demand-side incentives, resulting in slower adoption of EVs.

These market dynamics may continue to occur, which could have a substantial adverse impact on our business, including our investments in supply, production capacity, and equity method investments.

In addition, policy changes in the United States are currently phasing out certain demand-side incentives to purchase EVs and may further reduce supply-side benefits to produce EVs, all of which may result in slower adoption of EVs or otherwise disrupt the market for EVs.

Further, the pace of EV adoption and slower-than-anticipated development of the EV market may impact our strategy to comply with regulatory standards.

If consumers do not purchase our EVs and other highly fuel-efficient vehicles in sufficient numbers, it may be difficult for Ford to meet applicable environmental standards and may force us to take various product-led actions (e.g., curtailing the production and sale of certain internal combustion vehicles) that could have substantial adverse effects on our sales volume and operations.

In some cases, we plan to utilize credits purchased from third parties to demonstrate regulatory compliance.

Although recent actions taken or expected to be taken in the United States and elsewhere may reduce the stringency of such standards, if consumers do not purchase our EVs and other highly fuel-efficient vehicles in sufficient numbers, it may be difficult for Ford to meet applicable environmental standards in certain markets and may force us to take various product-led actions (e.g., curtailing the production and sale of certain internal combustion vehicles) that could have substantial adverse effects on our sales volume and operations.

As previously reported, we have entered into agreements to purchase regulatory compliance credits for current and future model years in various regions, as, in some cases, we plan to utilize credits purchased from third parties to demonstrate regulatory

Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

Our obligations under these agreements generally are dependent on the continued existence of an underlying regulatory compliance requirement in the applicable jurisdiction.

Following federal legislative action taken in the United States in the second quarter of 2025 that eliminated certain state compliance programs, we exercised our contractual right to terminate some of the credit purchase transactions under those agreements.

As a result of these terminations, in addition to the delivery of credits to us under our purchase agreements and accruals we recorded for credits we are obligated to receive, our future purchase obligations under our compliance credit purchase agreements as of June 30, 2025 totaled about $2.8 billion, down from about $4.2 billion at December 31, 2024.

In addition, we have written off, and may in the future write off, compliance credit assets that we are no longer able to use as a result of legislative or regulatory changes.

Write-offs to date for such credit assets have been immaterial.

Risk Factors in our 2024 Form 10-K Report for additional discussion of the risks related to lower-than-anticipated electric vehicle volumes and our planned transition to a greater mix of electric vehicles.

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RESULTS OF OPERATIONS

In the first quarter of 2025, the net income attributable to Ford Motor Company was $471 million, and Company adjusted EBIT was $1,019 million.

In the second quarter of 2025, the net loss attributable to Ford Motor Company was $36 million, and Company adjusted EBIT was $2,140 million.

Net income/(loss) includes certain items (“special items”) that are excluded from Company adjusted EBIT.

These items are discussed in more detail in Note 19 of the Notes to the Financial Statements.

We report special items separately to allow investors analyzing our results to identify certain infrequent significant items that they may wish to exclude when considering the trend of ongoing operating results.

We report special items separately to allow investors analyzing our results to identify certain infrequent significant items that they may wish to exclude when analyzing operating results.

Our pre-tax and tax special items were as follows (in millions):

First Quarter

Second Quarter First Half

2024 2025 2024 2025

Restructuring (by Geography)

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Subtotal Restructuring $ (226) $ (18) $ (807) $ (50)

Fuel injector field service action $ — $ (571) $ — $ (571)

EV program cancellation — (308) — (372)

Ford share of equity method investment’s asset impairments — (201) — (201)

Ford share of BlueOval SK’s asset write down / other — (193) — (193)

Extended Oakville Assembly Plant Changeover 45 — (246) —

Other 7 — 9 —

Subtotal Other Items $ 52 $ (1,273) $ (237) $ (1,337)

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(a) Includes related tax effect on special items and tax special items.

We recorded $110 million of pre-tax special item charges in the first quarter of 2025, primarily reflecting expenses related to the cancellation of a previously planned all-electric three-row SUV program and continued ongoing restructuring actions in Europe.

We recorded $1,302 million of pre-tax special item charges in the second quarter of 2025, primarily reflecting a field service action for fuel injectors, expenses related to the cancellation of a previously planned all-electric three-row SUV program and resulting actions (for additional details, please see the discussion of the Electric Vehicle Market in the “Recent Developments” section on page 34), our share of asset impairments at an equity method investment, and our share of BOSK’s asset write downs and other expenses due to BOSK’s alternative capacity usage plans.

We recorded a $233 million provision for tax special items in the second quarter of 2025, including a $471 million non-cash charge to deferred tax assets associated with resolving transfer price matters in certain non-U.S.

In Note 19 of the Notes to the Financial Statements, special items are reflected as a separate reconciling item, as opposed to being allocated among our segments.

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COMPANY KEY METRICS

The table below shows our first quarter 2025 key metrics for the Company, compared to a year ago.

First Quarter

2024 2025 H / (L)

The table below shows our second quarter and first half 2025 key metrics for the Company, compared to a year ago.

Second Quarter First Half

2024 2025 H / (L) 2024 2025 H / (L)

GAAP Financial Measures

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Net Income/(Loss) ($M) 1,831 (36) $ (1,867) 3,163 435 $ (2,728)

Net Income/(Loss) Margin (%) 3.1 % 1.2 % (2.0) ppts

Net Income/(Loss) Margin (%) 3.8 % (0.1) % (3.9) ppts 3.5 % 0.5 % (3.0) ppts

EPS (Diluted) $ 0.46 $ (0.01) $ (0.47) $ 0.79 $ 0.11 $ (0.68)

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EBIT ($M) 2,757 2,140 (617) 5,520 3,159 (2,361)

EBIT Margin (%) 6.5 % 2.5 % (4.0) ppts

EBIT Margin (%) 5.8 % 4.3 % (1.5) ppts 6.1 % 3.5 % (2.6) ppts

Adjusted EPS (Diluted) $ 0.47 $ 0.37 $ (0.10) $ 0.97 $ 0.51 $ (0.46)

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(a) See Non-GAAP Financial Measure Reconciliations section for reconciliation to GAAP.

In the first quarter of 2025, our diluted earnings per share of Common and Class B Stock was $0.12, and our diluted adjusted earnings per share was $0.14.

Net income/(loss) margin was 1.2% in the first quarter of 2025, down 2.0 percentage points from a year ago.

Company adjusted EBIT margin was 2.5% in the first quarter of 2025, down 4.0 percentage points from a year ago.

The table below shows the details of our first quarter 2025 net income/(loss) attributable to Ford and Company adjusted EBIT (in millions).

First Quarter

2024 2025 H / (L)

In the second quarter of 2025, our diluted earnings per share of Common and Class B Stock was a loss of $0.01, and our diluted adjusted earnings per share was $0.37.

Net income/(loss) margin was negative 0.1% in the second quarter of 2025, down 3.9 percentage points from a year ago.

Company adjusted EBIT margin was 4.3% in the second quarter of 2025, down 1.5 percentage points from a year ago.

The table below shows the details of our second quarter and first half 2025 net income/(loss) attributable to Ford and Company adjusted EBIT (in millions).

Second Quarter First Half

2024 2025 H / (L) 2024 2025 H / (L)

Ford Blue $ 1,167 $ 661 $ (506) $ 2,068 $ 757 $ (1,311)

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(a) See Non-GAAP Financial Measure Reconciliations section for reconciliation to GAAP.

The year-over-year decrease of $861 million in net income and $1,744 million in Company adjusted EBIT in the first quarter of 2025 was driven by lower Ford Pro and Ford Blue EBIT, offset partially by a reduced Model e EBIT loss and higher Ford Credit EBT.

The decrease in net income was also offset partially by lower special item charges, including lower year-over-year restructuring related charges and the non-recurrence of charges related to an extended EV program changeover at the Oakville Assembly Plant.

The year-over-year decrease of $1,867 million in net income and $617 million in Company adjusted EBIT in the second quarter of 2025 was driven by lower Ford Blue, Ford Pro, and Model e EBIT, offset partially by higher Ford Credit EBT.

The decrease in net income was also driven by higher special item charges, as described on page 36.

Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

The tables below and on the following pages provide first quarter 2025 key metrics and the change in first quarter 2025 EBIT compared with first quarter 2024 by causal factor for each of our Ford Blue, Ford Model e, and Ford Pro segments.

The tables below and on the following pages provide second quarter and first half 2025 key metrics and the change in second quarter 2025 EBIT compared with second quarter 2024 by causal factor for each of our Ford Blue, Ford Model e, and Ford Pro segments.

For a description of these causal factors, see Definitions and Information Regarding Ford Blue, Ford Model e, Ford Pro Causal Factors.

Ford Blue Segment

First Quarter

Key Metrics 2024 2025 H / (L)

Second Quarter First Half

Key Metrics 2024 2025 H / (L) 2024 2025 H / (L)

Wholesale Units (000) (a) 741 696 (45) 1,367 1,284 (84)

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EBIT ($M) 1,167 661 (506) 2,068 757 (1,311)

EBIT Margin (%) 4.1 % 0.5 % (3.7) ppts

EBIT Margin (%) 4.4 % 2.6 % (1.8) ppts 4.3 % 1.6 % (2.7) ppts

(a) Includes Ford and Lincoln brand and JMC brand vehicles produced and sold in China by our unconsolidated affiliates (about 105,000 units in Q2 2024 and 97,000 units in Q2 2025).

Change in EBIT by Causal Factor (in millions)

First Quarter 2024 EBIT

Second Quarter 2024 EBIT

Volume / Mix (508)

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Exchange (383)

First Quarter 2025 EBIT

In the first quarter of 2025, Ford Blue’s wholesales decreased 6% from a year ago, primarily reflecting the end of production of the Edge in North America, lower production of the Bronco and Ranger due to planned plant down weeks, and a planned reduction in dealer stocks resulting in lower wholesales across multiple nameplates.

Higher F-150 wholesales were a partial offset, as the first quarter of 2024 included lower wholesales due to the launch of a new model.

First quarter 2025 revenue decreased 3%, driven primarily by lower wholesales and unfavorable exchange, offset partially by favorable mix and pricing.

Ford Blue’s first quarter 2025 EBIT was $96 million, a decrease of $805 million from a year ago, with an EBIT margin of 0.5%.

The lower EBIT primarily reflects lower volume driven by planned production downtime and dealer stock reductions, adverse exchange, and tariff-related costs (primarily on parts).

Favorable net pricing was a partial offset.

Second Quarter 2025 EBIT

In the second quarter of 2025, Ford Blue’s wholesales decreased 6% from a year ago.

The decrease primarily reflects lower F-150 wholesales due to the non-repeat of the stock build in 2024 following the launch of the new model.

Second quarter 2025 revenue decreased 3%, driven primarily by lower wholesales and unfavorable exchange, offset partially by favorable mix and pricing.

Ford Blue’s second quarter 2025 EBIT was $661 million, a decrease of $506 million from a year ago, with an EBIT margin of 2.6%.

The lower EBIT primarily reflects lower volume and adverse exchange, offset partially by lower costs and favorable net pricing.

The lower costs reflect ongoing cost reduction initiatives, including lower warranty costs, which more than offset increased tariff-related costs.

Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

Ford Model e Segment

First Quarter

Key Metrics 2024 2025 H / (L)

Second Quarter First Half

Key Metrics 2024 2025 H / (L) 2024 2025 H / (L)

Wholesale Units (000) 26 60 34 36 91 55

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EBIT ($M) (1,150) (1,329) (179) (2,477) (2,178) 299

EBIT Margin (%) (1,139.7) % (68.4) % 1,071.4 ppts

EBIT Margin (%) (99.9) % (56.4) % 43.6 ppts (195.5) % (60.5) % 135.0 ppts

Change in EBIT by Causal Factor (in millions)

First Quarter 2024 EBIT

Second Quarter 2024 EBIT

Volume / Mix (24)

Net Pricing (52)

First Quarter 2025 EBIT

In the first quarter of 2025, Ford Model e’s wholesales increased significantly from a year ago, primarily due to the launch of EV products in Europe, including the Explorer, Capri, and Puma, and higher F-150 Lightning wholesales in North America.

First quarter 2025 revenue increased to $1.2 billion, reflecting higher wholesales and favorable net pricing driven by the non-recurrence of EV price adjustments on units in dealer stock in the first quarter of 2024.

Ford Model e’s first quarter 2025 EBIT loss was $849 million, a $478 million improvement from a year ago, with an EBIT margin of negative 68.4%.

The improved EBIT was primarily driven by favorable net pricing and lower material costs.

Second Quarter 2025 EBIT

In the second quarter of 2025, Ford Model e’s wholesales increased significantly from a year ago, primarily due to the launch of EV products in Europe, including the Explorer, Puma, and Capri, and higher F-150 Lightning and Mustang Mach-E wholesales in North America.

Second quarter 2025 revenue increased by $1,207 million, reflecting higher wholesales.

Ford Model e’s second quarter 2025 EBIT loss was $1,329 million, a $179 million higher loss than a year ago, with an EBIT margin of negative 56.4%.

The increased EBIT loss was primarily driven by tariff-related costs, volume-related manufacturing costs, and adverse net pricing.

Ford Pro Segment

First Quarter

Key Metrics 2024 2025 H / (L)

Second Quarter First Half

Key Metrics 2024 2025 H / (L) 2024 2025 H / (L)

Wholesale Units (000) (a) 375 429 54 783 781 (2)

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EBIT ($M) 2,562 2,318 (244) 5,568 3,627 (1,941)

EBIT Margin (%) 16.7 % 8.6 % (8.1) ppts

(a) Includes Ford brand vehicles produced and sold by our unconsolidated affiliate Ford Otosan in Türkiye (about 18,000 units in Q1 2024 and 20,000 units in Q1 2025).

EBIT Margin (%) 15.1 % 12.3 % (2.7) ppts 15.9 % 10.7 % (5.2) ppts

(a) Includes Ford brand vehicles produced and sold by our unconsolidated affiliate Ford Otosan in Türkiye (about 21,000 units in both Q2 2024 and Q2 2025).

Change in EBIT by Causal Factor (in millions)

First Quarter 2024 EBIT

Second Quarter 2024 EBIT

Volume / Mix 721

Net Pricing (491)

Exchange (10)

First Quarter 2025 EBIT

In the first quarter of 2025, Ford Pro’s wholesales decreased 14% from a year ago, driven by planned downtime at the Kentucky Truck Plant for the Expedition and Navigator launch, which also impacted Super Duty production, planned downtime at the Kansas City Assembly Plant for facility improvements that impacted Transit production, as well as the end of production of the Edge in North America for fleet customers (including daily rental).

First quarter 2025 revenue decreased 16%, reflecting lower wholesales and moderated pricing across fleets, including daily rental.

Ford Pro’s first quarter 2025 EBIT was $1.3 billion, a decrease of $1.7 billion from a year ago, with an EBIT margin of 8.6%.

The EBIT deterioration was driven by lower volume and mix, unfavorable fleet pricing (including daily rental), and tariff-related costs (primarily on parts).

Second Quarter 2025 EBIT

In the second quarter of 2025, Ford Pro’s wholesales increased 15% from a year ago, driven by higher daily rental volume and higher sales of the Transit family of vehicles, including the launch of the E-Transit Custom and E-Transit Courier in Europe.

Second quarter 2025 revenue increased 11%, primarily reflecting higher wholesales, offset partially by moderated pricing across fleets (including daily rental).

Ford Pro’s second quarter 2025 EBIT was $2,318 million, a decrease of $244 million from a year ago, with an EBIT margin of 12.3%.

The lower EBIT was primarily driven by unfavorable fleet pricing (including daily rental), tariff-related costs, and volume-related manufacturing costs, offset partially by higher volume.

Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

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◦ Net Pricing – primarily measures EBIT variance driven by changes in wholesale unit prices to dealers and marketing incentive programs such as rebate programs, low-rate financing offers, special lease offers, and stock adjustments on dealer inventory

◦ Contribution Costs – primarily measures EBIT variance driven by per-unit changes in cost categories that typically vary with volume, such as material costs (including commodity and component costs), warranty expense, and freight and duty costs

◦ Structural Costs – primarily measures EBIT variance driven by absolute change in cost categories that typically do not have a directly proportionate relationship to production volume.

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The foregoing information regarding Ford Credit’s website and its content is for convenience only and not deemed to be incorporated by reference into this Report nor filed with the SEC.

The tables below provide first quarter 2025 key metrics and the change in first quarter 2025 EBT compared with first quarter 2024 by causal factor for the Ford Credit segment.

The tables below provide second quarter and first half 2025 key metrics and the change in second quarter 2025 EBT compared with second quarter 2024 by causal factor for the Ford Credit segment.

For a description of these causal factors, see Definitions and Information Regarding Ford Credit Causal Factors.

First Quarter

Key Metrics 2024 2025 H / (L)

Second Quarter First Half

Key Metrics 2024 2025 H / (L) 2024 2025 H / (L)

Total Net Receivables ($B) $ 137.7 $ 143.7 $ 6.0

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EBT ($M) 343 645 $ 302 669 1,225 $ 556

ROE (%) 7.0 % 12.3 % 5.3 ppts

ROE (%) 7.6 % 14.9 % 7.3 ppts 7.3 % 13.6 % 6.3 ppts

Other Balance Sheet Metrics

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retail financing only.

portfolio off-lease first quarter auction values at Q1 2025 mix.

portfolio off-lease second quarter auction values at Q2 2025 mix and YTD amounts at YTD 2025 mix.

Change in EBT by Causal Factor (in millions)

First Quarter 2024 EBT

Second Quarter 2024 EBT

Volume / Mix 21

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Lease Residual 23

Exchange (10)

First Quarter 2025 EBT

Ford Credit’s total net receivables of $141.6 billion were 5% higher than a year ago, reflecting higher consumer financing, a larger operating lease portfolio, and higher non-consumer financing, offset partially by exchange.

The first quarter 2025 U.S.

Second Quarter 2025 EBT

Ford Credit’s total net receivables of $143.7 billion were 4% higher than a year ago, explained primarily by a larger operating lease portfolio, higher consumer financing, and exchange.

The second quarter 2025 U.S.

loss-to-receivables (“LTR”) ratio of 48 basis points increased from a year ago, reflecting higher repossessions and increased loss severity.

auction values increased 3% year over year, reflecting low industrywide used vehicle availability;

tariffs and economic outlook create uncertainty for used vehicle pricing.

Ford Credit’s first quarter 2025 EBT of $580 million was $254 million higher than a year ago, explained primarily by higher financing margin, favorable volume and mix, and a favorable derivative market valuation adjustment (included in Other), offset partially by higher credit losses.

auction values increased 4% year over year, reflecting industrywide low used vehicle supply and high demand.

Ford Credit’s second quarter 2025 EBT of $645 million was $302 million higher than a year ago, explained primarily by higher financing margin and receivables and a favorable derivative market valuation adjustment (included in Other), partially offset by an accrual related to an industrywide review of historical U.K.

discretionary dealer commissions (also included in Other).

Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

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These include expenses related to setting and directing global policy, providing oversight and stewardship, and promoting the Company’s interests.

In the first quarter of 2025, Corporate Other had a $117 million EBIT loss, compared to a $143 million EBIT loss a year ago.

In the second quarter of 2025, Corporate Other had a $155 million EBIT loss, compared to a $165 million EBIT loss a year ago.

Interest on Debt

Interest on Debt, which consists of interest expense on Company debt excluding Ford Credit, was $288 million in the first quarter of 2025, $10 million higher than a year ago.

Our Provision for/(Benefit from) income taxes for the first quarter of 2025 was $148 million, resulting in an effective tax rate of 23.8%.

Our first quarter 2025 adjusted effective tax rate, which excludes special items, was 24.2%.

During the second quarter of 2025, we anticipate recognizing a non-cash charge to deferred tax assets of about $450 million associated with resolving transfer pricing matters in certain non-U.S.

Interest on Debt, which consists of interest expense on Company debt excluding Ford Credit, was $297 million in the second quarter of 2025, $27 million higher than a year ago.

Our Provision for/(Benefit from) income taxes for the second quarter and first half of 2025 was $570 million and $718 million, respectively, resulting in effective tax rates of 105.4% and 61.8%, respectively.

During the second quarter of 2025, we recognized a non-cash charge to deferred tax assets of $ 471 million associated with resolving transfer pricing matters in certain non-U.S.

Our second quarter and first half 2025 adjusted effective tax rates, which exclude special items, were 18.3% and 20.0%, respectively.

On July 4, 2025, P.L.

119-21 (otherwise known as the “One Big Beautiful Bill Act”) was signed into law.

We are analyzing the provisions within the act;

however, we do not expect a material impact on our 2025 consolidated financial statements.

During the third quarter of 2025, we expect to recognize a non-cash charge to deferred tax assets of about $400 million to recognize the impact of tax legislation enacted in Germany on July 18, 2025.

We expect the charge to be treated as a tax special item.

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Any future changes to our structure, as well as any changes in income tax laws in the countries that we operate, could cause increases or decreases to our deferred tax balances and related valuation allowances.

For example, in the near-term, we anticipate releasing valuation allowances in certain jurisdictions where restructuring actions have improved business operations.

Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

LIQUIDITY AND CAPITAL RESOURCES

At March 31, 2025, total balance sheet cash, cash equivalents, marketable securities, and restricted cash, including Ford Credit and entities held for sale, was $35.4 billion.

At June 30, 2025, total cash, cash equivalents, marketable securities, and restricted cash, including Ford Credit and entities held for sale, was $37.7 billion.

We consider our key balance sheet metrics to be:

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Company excluding Ford Credit

2024 March 31,

2024 June 30,

Balance Sheets ($B)

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Total Funded Status OPEB $ (4.4) $ (4.4)

(a) Balances at March 31, 2025 reflect net funded status at December 31, 2024, updated for:

(a) Balances at June 30, 2025 reflect net funded status at December 31, 2024, updated for:

service and interest cost;

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Our key priority is to maintain a strong balance sheet to withstand potential stress scenarios, while having resources available to invest in and grow our business.

At March 31, 2025, we had Company cash of $27.1 billion and liquidity of $45.3 billion.

At March 31, 2025, about 84% of Company cash was held by consolidated entities domiciled in the United States.

At June 30, 2025, we had Company cash of $28.4 billion and liquidity of $46.6 billion.

At June 30, 2025, about 82% of Company cash was held by consolidated entities domiciled in the United States.

To be prepared for an economic downturn and other stress scenarios, we target an ongoing Company cash balance at or above $20 billion plus significant additional liquidity above our Company cash target.

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The net impact of this typically results in cash outflows from changes in our working capital balances during these shutdown periods.

Our finished product inventory at March 31, 2025 was higher than at December 31, 2024, reflecting higher in-transit and in-plant inventory.

Our finished product inventory at June 30, 2025 was higher than at December 31, 2024, reflecting higher in-transit and in-plant inventory.

In response to, or in anticipation of, supplier disruptions, we may stockpile certain components or raw materials to help prevent disruption in our production of vehicles.

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Moreover, in order to secure critical materials for production of electric vehicles, we have entered into and we may, in the future, enter into offtake agreements with raw material suppliers and make investments in certain raw material and battery suppliers, including contributing up to a maximum of $6.6 billion in capital to BlueOval SK, LLC (“BOSK”) over a five-year period ending in 2026.

As of March 31, 2025, we have recognized contributions (net of returns of capital) to BOSK of $2.4 billion (for additional information, see Note 17 of the Notes to the Financial Statements herein).

As of June 30, 2025, we have recognized contributions (net of returns of capital) to BOSK of $2.6 billion (for additional information, see Note 17 of the Notes to the Financial Statements herein).

Our actual capital outlay could vary significantly based on the final project costs and potential financing opportunities.

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Subject to satisfaction of those conditions, we will be obligated to purchase the materials or otherwise compensate the supplier in an amount determined by the contract.

As of March 31, 2025, our estimated expenditures for the maximum quantity that we are committed to purchase under these offtake agreements through 2035, subject to certain conditions, consist of approximately $2.3 billion of purchase obligations and approximately $4.3 billion of contingent purchase obligations based on our present forecast;

As of June 30, 2025, our estimated expenditures for the maximum quantity that we are committed to purchase under these offtake agreements through 2035, subject to certain conditions, consist of approximately $1.7 billion of purchase obligations and approximately $4.8 billion of contingent purchase obligations based on our present forecast;

however, our forecast could fluctuate from period to period based on market prices, which may result in significant increases or decreases in our estimate.

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We have no economic interest in a supplier’s decision to participate in the SCF program, and we do not provide any guarantees in connection with it.

As of March 31, 2025, the outstanding amount of Ford receivables that suppliers elected to sell to the SCF financial institutions was $176 million.

The amount settled through the SCF program during the first quarter of 2025 was $301 million.

As of June 30, 2025, the outstanding amount of Ford receivables that suppliers elected to sell to the SCF financial institutions was $164 million.

The amount settled through the SCF program during the first half of 2025 was $605 million.

Changes in Company cash excluding Ford Credit are summarized below (in billions):

First Quarter

Second Quarter First Half

2024 2025 2024 2025

Company Excluding Ford Credit

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Numbers may not sum due to rounding.

Our first quarter 2025 Net cash provided by/(used in) operating activities was positive $3.7 billion, $2.3 billion higher than a year ago (see page 58 for additional information).

The increase reflects higher Ford Credit operating cash flows and working capital changes, offset partially by lower net income.

Company adjusted free cash flow was negative $1.5 billion, $1.0 billion lower than a year ago, primarily driven by lower Company adjusted EBIT excluding Ford Credit, offset partially by working capital changes, lower cash taxes and capital spending, and higher Ford Credit distributions.

Capital spending was $1.8 billion in the first quarter of 2025, a decrease of $0.3 billion from a year ago.

Our second quarter 2025 Net cash provided by/(used in) operating activities was $6.3 billion, $0.8 billion higher than a year ago (see page 61 for additional information).

The increase primarily reflects higher Ford Credit operating cash flows and working capital changes, offset partially by lower net income.

Company adjusted free cash flow was $2.8 billion, $0.4 billion lower than a year ago, primarily driven by lower Company adjusted EBIT excluding Ford Credit and all other and timing differences, offset partially by higher Ford Credit distributions and working capital changes.

Capital spending was $2.1 billion in the second quarter of 2025, the same as a year ago.

We now expect full year 2025 capital spending to be about $9 billion.

Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

First quarter 2025 working capital impact was negative $0.6 billion, driven by higher inventory and receivables, offset partially by higher trade payables, each compared to December 31, 2024.

All other and timing differences were negative $0.6 billion.

Second quarter 2025 working capital impact was $0.3 billion, driven by lower inventory and higher payables, offset by higher receivables, each compared to March 31, 2025.

All other and timing differences were $1.8 billion.

Timing differences include differences between accrual-based EBIT and the associated cash flows (e.g., marketing incentive and warranty payments to dealers, JV equity income, compensation payments, and pension and OPEB income or expense).

Cash outflows related to our warranty accruals are expected to occur over several years.

In the first quarter of 2025, we contributed $234 million to our global funded pension plans.

In the second quarter of 2025, we contributed $281 million to our global funded pension plans.

We continue to expect to contribute about $800 million to our global funded pension plans in 2025.

Shareholder distributions were $1.2 billion in the first quarter of 2025, all of which was attributable to our regular and supplemental dividends.

Shareholder distributions were $0.6 billion in the second quarter of 2025, all of which was attributable to our regular dividend.

Available Credit Lines .

Total Company committed credit lines, excluding Ford Credit, at March 31, 2025 were $20.1 billion, consisting of $13.5 billion of our corporate credit facility, $2.0 billion of our supplemental revolving credit facility, $2.5 billion of our 364-day revolving credit facility, and $2.1 billion of local credit facilities.

At March 31, 2025, $1.8 billion of committed Company credit lines, excluding Ford Credit, was utilized under local credit facilities for our affiliates, and the full amount under each of our corporate, supplemental, and 364-day credit facilities was available.

Total Company committed credit lines, excluding Ford Credit, at June 30, 2025 were $19.3 billion, consisting of $13.5 billion of our corporate credit facility, $2.0 billion of our supplemental revolving credit facility, $2.5 billion of our 364-day revolving credit facility, and $1.3 billion of local credit facilities.

At June 30, 2025, $1.0 billion of committed Company credit lines, excluding Ford Credit, was utilized under local credit facilities for our affiliates, and the full amount under each of our corporate, supplemental, and 364-day credit facilities was available.

Our corporate, supplemental, and 364-day revolving credit facilities were amended as of April 17, 2025 to extend the maturity dates of the commitments under each facility.

Following the corporate credit facility amendment, $3.4 billion of commitments mature on April 17, 2028 and $10.1 billion of commitments mature on April 17, 2030.

Following the supplemental revolving credit facility amendment, $2.0 billion of commitments mature on April 17, 2028.

Following the 364-day revolving credit facility amendment, $2.5 billion of commitments mature on April 16, 2026.

Lenders under our corporate credit facility have $3.4 billion of commitments maturing on April 17, 2028 and $10.1 billion of commitments maturing on April 17, 2030.

Lenders under our supplemental revolving credit facility have $2.0 billion of commitments maturing on April 17, 2028.

Lenders under our 364-day revolving credit facility have $2.5 billion of commitments maturing on April 16, 2026.

The corporate, supplemental, and 364-day credit agreements include certain sustainability-linked targets, pursuant to which the applicable margin and facility fees may be adjusted if Ford achieves, or fails to achieve, the specified targets related to global manufacturing facility greenhouse gas emissions, carbon-free electricity consumption, and Ford Europe CO 2 tailpipe emissions.

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Ford Credit has been designated as a subsidiary borrower under the corporate credit facility and the 364-day revolving credit facility.

As shown in Note 12 of the Notes to the Financial Statements, at March 31, 2025, Company debt excluding Ford Credit was $20.9 billion (including $0.8 billion of finance leases).

This balance is $0.3 billion higher than at December 31, 2024.

On July 28, 2025, we closed on a $3 billion delayed draw term loan facility, further strengthening our liquidity and providing additional financial flexibility.

The commitments under the delayed draw term loan facility are available through July 28, 2026.

Any unused commitments shall automatically terminate after July 28, 2026, and any loans drawn under the facility will mature on December 31, 2028.

The terms and conditions of the delayed draw term loan facility are consistent with our corporate, supplemental, and 364-day revolving facilities;

however, the delayed draw term loan facility does not include any sustainability-linked targets.

As of July 30, 2025, all $3 billion was available for use.

On July 23, 2025, Ford Motor Company Limited, our operating subsidiary in the United Kingdom (“Ford of Britain”), entered into a £1 billion term loan credit facility with a syndicate of banks to support Ford of Britain’s general export activities.

Accordingly, U.K.

Export Finance (“UKEF”) provided an £800 million guarantee of the credit facility under its Export Development Guarantee scheme, which supports high value commercial lending to U.K.

We have also guaranteed Ford of Britain’s obligations under the credit facility to the lenders.

On July 28, 2025, Ford of Britain drew the full £1 billion available under the facility.

This seven-year, partially amortizing loan matures on July 23, 2032.

As shown in Note 12 of the Notes to the Financial Statements, at June 30, 2025, Company debt excluding Ford Credit was $20.3 billion (including $0.9 billion of finance leases).

This balance is $0.3 billion lower than at December 31, 2024.

Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

We manage Company debt (excluding Ford Credit) levels with a leverage framework that targets investment grade credit ratings through a normal business cycle.

The leverage framework includes a ratio of total Company debt (excluding Ford Credit), underfunded pension liabilities, operating leases, and other adjustments, divided by Company adjusted EBIT (excluding Ford Credit EBT), and further adjusted to exclude depreciation and tooling amortization (excluding Ford Credit).

Ford Credit’s leverage is calculated as a separate business as described in the ”Liquidity and Capital Resources - Ford Credit Segment” section of Item 2.

Ford Credit’s leverage is calculated separately as described in the ”Liquidity and Capital Resources - Ford Credit Segment” section of Item 2.

Ford Credit is self-funding and its debt, which is used to fund its operations, is separate from our Company debt excluding Ford Credit.

Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

Ford Credit Segment

Ford Credit remains well capitalized with a strong balance sheet and funding diversified across platforms and markets.

Ford Credit ended the first quarter of 2025 with $29.5 billion of liquidity, up $4.3 billion from year-end.

Ford Credit completed $11 billion of public term issuances through May 2, 2025.

Ford Credit ended the second quarter of 2025 with $27 billion of liquidity, up $1.8 billion from year-end.

Ford Credit completed $15 billion of public term issuances through July 29, 2025.

Key elements of Ford Credit’s funding strategy include:

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2024 December 31,

2024 March 31,

2024 June 30,

Funding Structure

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Securitized Funding as Percent of Total Debt 41.3 % 43.8 % 40.5 %

Net receivables of $141.6 billion at March 31, 2025 were funded primarily with term unsecured debt and term asset-backed securities.

Securitized funding as a percent of total debt was 39.3% as of March 31, 2025, down from 43.8% at December 31, 2024.

Net receivables of $143.7 billion at June 30, 2025 were funded primarily with term unsecured debt and term asset-backed securities.

Securitized funding as a percent of total debt was 40.5% as of June 30, 2025.

Public Term Funding Plan.

The following table shows Ford Credit’s issuances for full year 2023 and 2024, planned issuances for full year 2025, and its global public term funding issuances through May 2, 2025, excluding short-term funding programs (in billions):

The following table shows Ford Credit’s issuances for full year 2023 and 2024, planned issuances for full year 2025, and its global public term funding issuances through July 29, 2025, excluding short-term funding programs (in billions):

Forecast Through

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2024 December 31,

2024 March 31,

2024 June 30,

Liquidity Sources (a)

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Ford Credit’s net liquidity available for use will fluctuate quarterly based on factors including near-term debt maturities, receivable growth and decline, and timing of funding transactions.

At March 31, 2025, Ford Credit’s net liquidity available for use was $29.5 billion, $4.3 billion higher than year-end 2024, reflecting strong public market execution in the first quarter.

At March 31, 2025, Ford Credit’s liquidity sources, including cash, committed asset-backed facilities, and committed unsecured credit facilities, totaled $52.2 billion, down $1.7 billion from year-end 2024, primarily explained by lower cash.

At June 30, 2025, Ford Credit’s net liquidity available for use was $27.0 billion, $1.8 billion higher than year-end 2024, reflecting strong access to public funding markets in the first half of the year.

At June 30, 2025, Ford Credit’s liquidity sources, including cash, committed asset-backed facilities, and committed unsecured credit facilities, totaled $53.0 billion, down $0.9 billion from year-end 2024, primarily explained by lower cash.

Material Cash Requirements.

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2024 December 31,

2024 March 31,

2024 June 30,

Leverage Calculation

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Ford Credit plans its leverage by considering market conditions and the risk characteristics of its business.

At March 31, 2025, Ford Credit’s financial statement leverage was 9.5:1.

Ford Credit targets financial statement leverage in the range of 9:1 to 10:1.

At June 30, 2025, Ford Credit’s financial statement leverage was 9.4:1.

Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

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Pension Plans - Funded Balances.

As of March 31, 2025, our total Company pension underfunded status reported on our consolidated balance sheets was $219 million and reflects the net funded status at December 31, 2024, updated for:

As of June 30, 2025, our total Company pension overfunded status reported on our consolidated balance sheets was $143 million and reflects the net funded status at December 31, 2024, updated for:

service and interest cost;

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Four Quarters Ending

2024 March 31,

2024 June 30,

Adjusted Net Operating Profit/(Loss) After Cash Tax

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Each rating agency may have different criteria for evaluating company risk and, therefore, ratings should be evaluated independently for each rating agency.

The following rating actions were taken by these NRSROs since the filing of our 2024 Form 10-K Report:

• On February 6, 2025, S&P affirmed the credit ratings for Ford and Ford Credit at BBB- and revised the outlook to negative from stable.

There have been no rating actions taken by these NSROs since the filing of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025.

The following table summarizes certain of the credit ratings and outlook presently assigned by these four NRSROs:

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Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

Based on our current understanding and our expectation as of May 5, 2025 of how certain details and changes will be resolved related to tariffs, and subject to the uncertainties described in the succeeding paragraph, which could have a significant financial impact, we estimate a gross adverse adjusted EBIT impact of about $2.5 billion and a net adverse adjusted EBIT impact (reflecting expected offsetting actions) of about $1.5 billion for full-year 2025.

Given material near-term risks, especially the potential for industrywide supply chain disruption impacting production, the potential for future or increased tariffs in the United States, changes in the implementation of tariffs including tariff offsets, retaliatory tariffs and other restrictions by other governments and the potential related market impacts, and policy uncertainties associated with tax and emissions policy, we are suspending our full-year 2025 adjusted EBIT and adjusted free cash flow guidance.

In addition, we are suspending our guidance for Ford Blue, Ford Model e, and Ford Pro full-year 2025 segment EBIT and Ford Credit full-year 2025 EBT.

We are also suspending our guidance for full-year 2025 capital spending.

We provided 2025 Company guidance in our earnings release furnished on Form 8-K dated July 30, 2025.

The guidance is based on our expectations and best estimates as of July 30, 2025, and assumes no material change to our current assumptions for inflation, logistics issues, production, or macroeconomic conditions.

Moreover, our guidance has not factored in any new policy changes by the administration in the United States, including future or revised tariffs, that have not been announced or tariffs or other policy changes that may be announced by other governments after the date hereof.

Our actual results could differ materially from our guidance due to risks, uncertainties, and other factors, including those set forth in “Risk Factors” in Item 1A of our 2024 Form 10-K Report and as updated by our subsequent filings with the SEC.

2025 Guidance

Total Company

Adjusted EBIT (a) $6.5 - $7.5 billion

Adjusted Free Cash Flow (a) $3.5 - $4.5 billion

Capital spending About $9.0 billion

(a) When we provide guidance for Adjusted EBIT and Adjusted Free Cash Flow, we do not provide guidance for the most comparable GAAP measures because, as described in more detail below in “Non-GAAP Measures That Supplement GAAP Measures,” they include items that are difficult to predict with reasonable certainty.

For full-year 2025, we expect adjusted EBIT of $6.5 billion to $7.5 billion and adjusted free cash flow of $3.5 billion to $4.5 billion.

Our outlook for 2025 assumes:

industry sales of 16.0 million to 16.5 million units

• Full year industry pricing about flat

• Net cost improvement target of $1.0 billion, excluding the impact of tariffs

• Net tariff headwind of about $2.0 billion

Our assumption for the net tariff headwind reflects approximately $3.0 billion of gross adverse adjusted EBIT impact, offset partially by $1.0 billion of recovery actions (primarily market factors).

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements