For fiscal 2026, Honda forecasts an operating profit of 500 billion yen, indicating a contraction of 58.8% year over year.
Honda Motor Co., Ltd.'s FY2025 earnings revealed resilient motorcycle and hybrid sales, but auto segment weakness and a 12% profit drop spooked investors. FY2026 guidance is ultra-conservative, reflecting worst-case U.S. tariff impacts and a significant step down in operating and net profit expectations. Management is mitigating tariff risks by reallocating production to U.S. plants, accelerating exports, and delaying major EV investments to preserve flexibility.
While the Zacks Foreign Auto industry is struggling with economic uncertainty, stocks like TM, HMC and NIO are expected to hold their grounds.
Honda Motor Co., Ltd. (NYSE:HMC ) Q4 2025 Earnings Conference Call May 13, 2025 4:00 AM ET Company Participants Toshihiro Mibe - Director, President and Representative Executive Officer Noriya Kaihara - Director, Executive Vice President and Representative Executive Officer Eiji Fujimura - Director and Managing Executive Officer Conference Call Participants Operator Thank you for taking time to attend Honda's Financial Results Press Conference for the Fiscal Year Ended March 31, 2025.
Honda (NYSE:HMC) Canada said it will postponing a C$15 billion (US$10.7 billion) electric vehicle investment project, which includes a proposed EV battery plant and retooled vehicle assembly facility, in Alliston, Ontario. Ken Chiu, Honda spokesperson, said the project will be postponed by approximately two years due to the recent slowdown in the EV market.
Honda Motor (NYSE:HMC) shares edged up 1% in Tokyo on Tuesday, holding steady despite a stark warning from the company that it expects a 59% drop in profits this year. Investors appeared to take comfort in the fact that the news, though disappointing, was neither a shock nor worse than feared.
The carmaker projected a sharp drop in profit as it expects to be hit by higher U.S. tariffs on foreign-made cars.
Honda Motor reports 76% plunge in operating profit in huge earnings miss
Japan's Honda Motor forecast a 59% profit decrease for the current financial year on Tuesday as the impact of U.S. President Donald Trump's tariffs and a stronger yen offset gains from demand for its hybrid lineup.
Tariffs will quickly batter U.S. car sales as some prices rise by $5,000 to $10,000.
Honda on Wednesday issued a return-to-office order for its US-based staff. The internal memo says that employees must work in the office at least 80% of the time by October 6.
Honda (HMC) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).