Ford Motor Co (F) shares plummeted 5.24% in after-hours trading on Wednesday following the release of its second-quarter earnings report and revised full-year guidance. The automaker's stock decline came as the company warned of a significant tariff-related impact on its financial outlook.

While Ford reported better-than-expected Q2 results, with adjusted earnings per share of $0.37 surpassing analyst estimates of $0.33, the company's forward-looking statements overshadowed the positive quarterly performance. Ford announced it now anticipates full-year adjusted EBIT of $6.5 billion to $7.5 billion, which includes a substantial net tariff-related headwind of about $2 billion.

This revised guidance represents a reduction from Ford's initial February outlook of $7 billion to $8.5 billion in adjusted EBIT for 2025. The company cited prolonged higher duties on imports from Mexico and Canada, as well as elevated levies on aluminum and steel, as key factors contributing to the increased tariff projection. Ford CFO Sherry House noted that the $2 billion net tariff impact reflects a gross $3 billion hit to adjusted EBIT, partially offset by $1 billion in mitigation efforts. The automaker's struggle with tariffs highlights the ongoing challenges faced by the U.S. auto industry amid trade tensions and economic uncertainties.