Key facts
- Honda Motor forecasts a net profit of 400 billion yen for the fiscal year ending March 2027.
- This is a substantial improvement from a net loss of 423.9 billion yen in the previous fiscal year.
- The company's quarterly profit was halved compared to the same period last year.
- Quarterly sales saw a 1.2% decrease, totaling 5.3 trillion yen.
- Honda has revised its full fiscal year 2026 profit forecast upward to 420 billion yen.
- Tariffs on vehicle exports to the U.S. had an estimated negative impact of 450 billion yen.
Honda Motor has revised its profit outlook upward for the fiscal year ending March 2027, now anticipating a net profit of 400 billion yen, a significant recovery from a net loss in the previous fiscal year. This positive revision is attributed to a weaker yen and strong demand for its motorcycles.
However, the company's performance in the last quarter showed a profit that was half of the previous year's, with quarterly sales declining by 1.2% to 5.3 trillion yen. Honda also revised its full fiscal year 2026 profit forecast upward to 420 billion yen, though this still represents a 50% drop from the prior year.
The automaker has been impacted by 25% tariffs on vehicle exports to the United States, estimated to have a negative effect of approximately 450 billion yen. A recent agreement between the U.S. and Japan to reduce this tariff to 15% was welcomed by Honda's CFO, Eiji Fujimura, who noted it would be a positive development for the company, its customers, suppliers, and shareholders. Honda also incurred a one-time expense related to electric vehicles.