Japan · Delayed Price · Currency is JPY Honda Motor Earnings Call Transcripts
Fiscal Year 2026
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Significant EV-related losses led to a net loss for the year, but strong motorcycle performance and a strategic pivot to hybrids and ICE models underpin a recovery plan. The outlook emphasizes cost control, flexible EV investment, and robust cash flow.
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A major strategic shift is underway, with the cancellation of three EV models and a JPY 2.5 trillion impairment due to declining EV demand and regulatory changes, especially in the U.S. Focus will shift to hybrids and regional adaptation, while maintaining financial stability and shareholder returns.
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Q3 saw record motorcycle sales and strong operating margins, but overall profit declined year-on-year due to significant one-time EV and tariff impacts. FY guidance is unchanged, with ongoing risks from tariffs, supply chain, and EV market uncertainty.
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Q2 operating profit fell sharply year-over-year due to tariffs and EV-related expenses, while motorcycles achieved record results. Full-year forecasts were revised down on weaker auto sales and semiconductor shortages, with ongoing risks from tariffs and competitive pressures.
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Q1 operating profit fell sharply year-over-year due to tariffs and EV-related expenses, but strong motorcycle sales in South America and Vietnam drove record segment profits. Full-year forecasts were raised on improved tariff outlook and exchange rates, while risks remain from ongoing tariff and EV challenges.
Fiscal Year 2025
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Operating profit for FYE March 2025 was JPY 1,213.4 billion, with strong motorcycle results offset by weaker automobile sales and a one-time warranty provision expense. FYE March 2026 guidance reflects major tariff and forex headwinds, with a minimum operating profit of JPY 500 billion.
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Q3 operating profit rose to JPY 1,139.9 billion, led by strong motorcycle sales, while automobile sales declined due to weakness in China. Full-year forecasts are unchanged, with risks from higher Q4 expenses, tariffs, and challenging Asian markets.
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First-half operating profit rose to JPY 742.6 billion, but full-year profit guidance was revised down due to weaker China sales, higher warranty and EV incentive costs, and currency impacts. Share buybacks were expanded, and restructuring in China continues.
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Record quarterly operating profit and strong global motorcycle and hybrid sales offset declines in China and forex volatility. Full-year profit and dividend guidance remain unchanged, with ongoing share buybacks and governance reforms supporting shareholder value.
Fiscal Year 2024
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Nissan and Honda have signed an MOU to begin formal business integration talks, with Mitsubishi Motors considering participation by January 2025. The integration aims to address industry shifts in electrification and vehicle intelligence, targeting significant synergies, operational efficiencies, and a new holding company listed by August 2026.