Ford's stock takes a hit, as expected cost of large recall of SUVs is disclosed

Dow Jones2025-07-16

MW Ford's stock takes a hit, as expected cost of large recall of SUVs is disclosed

By Tomi Kilgore

Carmaker needs to fix fuel injectors on certain model year Bronco Sport, Escape and Kuga vehicles, and it will cost nearly $600 million

Shares of Ford Motor Co. turned lower in early Wednesday trading, after the automaker disclosed that it estimated the cost to fix fuel injectors as part of a large vehicle recall to be about $570 million.

The "field service action," for up to nearly 700,000 vehicles, was for certain 2021 to 2024 model year Bronco Sport, 2020 to 2022 Escape and 2019 to 2024 Kuga vehicles.

Ford said the cost of the remedy actions will be reflected in second-quarter results, which are slated to be reported on July 30, after the closing bell. The current average analyst estimate for second-quarter net income is $1.17 billion, down from $1.91 billion in the same period a year ago.

The stock (F) was down 0.6% in recent premarket trading, after being up about 0.3% before the disclosure.

Ford said the cost of the service action will be treated as a special item, so it will not impact adjusted earnings per share, which is EPS that excludes nonrecurring items. The current FactSet consensus for adjusted EPS is 32 cents, versus 47 cents a year ago.

On Monday, the National Highway Traffic Safety Administration said Ford was recalling up to 694,271 vehicles because "a fuel injector may crack and leak fuel inside the engine compartment," which could lead to a potential fire under the hood.

Ford said it has identified eight vehicles that experienced underhood fires. "Ford is aware of no allegations of injuries associated with these 8fires," according to the NHTSA recall report.

Ford's stock has rallied 16.9% in 2025 through Tuesday, while shares of rival General Motors Co. (GM) have slipped 1.1% and the S&P 500 index SPX has gained 6.2%.

-Tomi Kilgore

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(END) Dow Jones Newswires

July 16, 2025 08:19 ET (12:19 GMT)

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Ford's stock takes a hit, as expected cost of large recall of SUVs is disclosed

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