Full-year forecast rises to 400 billion yen net profit on 24.150 trillion yen revenue
Honda Motor reported Wednesday that its quarterly net profit more than doubled for the three months ended June, and the company raised its forecasts for the fiscal year ending March 2027. The Tokyo-based automaker’s results follow its first full-year net loss since listing in 1957.
The Wall Street Journal put April–June net profit at 450.9 billion yen, equivalent to $2.86 billion. The Associated Press reported 456.9 billion yen ($2.9 billion), up from 196.6 billion yen in the same period a year earlier. The quarterly profit exceeded the 208.2 billion yen estimate in a poll of analysts by data provider Quick, according to the Journal.
First-quarter revenue climbed 13.5% to 6.062 trillion yen, the Journal reported, while the AP put quarterly sales at 6.06 trillion yen ($38 billion) and said vehicles sold well in the U.S. and India. Operating profit in Honda’s motorcycle business increased on higher sales in India and Brazil, and operating results in its car business improved, driven by a weaker yen that boosts the value of profits earned abroad in yen terms, according to the Journal.
For the year ending March 2027, Honda projected an 11% increase in revenue to 24.150 trillion yen and net profit of 400 billion yen, the Journal reported. The company previously expected revenue of 23.150 trillion yen and net profit of 260 billion yen. According to the Journal, the projection would mark a reversal from the net loss Honda posted in its latest fiscal year.
Honda recorded a 423.9 billion yen ($2.7 billion) loss for the fiscal year ended in March — its first since listing in 1957, according to the Associated Press. The Journal reported that Honda booked electric-vehicle losses equivalent to about $10 billion after giving up on its main electric-vehicle plans in the U.S. The AP reported that Honda acknowledged “heavy costs for its electric-vehicle plans, which didn’t measure up to the original ambitions, partly because of U.S. President Donald Trump’s policies.” Analysts say many consumers weren’t ready to go electric, and Honda has abandoned many of its plans for electric-vehicle models, according to the AP.
Honda plans to end production of the Prologue SUV, the only electric vehicle it sells in the U.S., this year, according to the Journal. The company is aiming to improve its hybrid electric-vehicle offerings to shore up the profitability of its car business.
In China, Honda in July extended its joint venture with Guangzhou Automobile Group through 2038, the Journal reported. Honda’s sales in China have fallen in recent years because of intense competition and a shift away from gas-fueled vehicles in the country.