Honda’s operating profit and sales revenue plummeted last quarter, amid a slump in its car sales and the looming impact of United States tariffs.
Its operating profit was JP¥73.5 billion yen, down 75.9% year-over-year and sinking below LSEG estimates of ¥275.5 billion. Across the fiscal year ending in March, operating profit fell by 12.2% to ¥1.21 trillion.
“Motorcycle business saw strong sales volumes globally, achieving record highs in sales volume, operating profit, and operating profit margin,” the company said in an earnings presentation. “Automobile business experienced a decline in sales volume mainly in the China and ASEAN regions, and was impacted by increased incentives for EV sales in North America. However, Hybrid Electric Vehicle sales expanded.”
Honda’s operating profit dropped in North America, Europe, and Asia last quarter. North America, its largest market by revenue, saw operating profit fall by JP¥326.3 billion to reach a loss of ¥38.2 billion.
Profit attributed to Honda’s owners was JP¥835.8 billion last fiscal year, down 23.6% year-over-year. Basic earnings per share were ¥178.93, compared with ¥225.88 the prior year.
Sales revenue last quarter was JP¥5.36 trillion, in line with estimates but declining from ¥5.43 trillion year-on-year. Revenue for the fiscal year was ¥21.69 trillion, up 6.2%.
Motorcycle unit sales increased in all regions except Japan last fiscal year, rising 9.3% overall. Automotive sales dropped in Europe and Asia for a 9.6% overall decline, and power product sales were down in all regions except Asia for a 2.9% fall.
Honda’s fiscal year 2026 guidance projects operating profit will drop by a further 58.8% to JP¥500 billion, with earnings per share down to ¥62.84. Sales revenue will dip by 6.4% to ¥20.3 trillion, the company expects.
“Regarding the consolidated financial results for the fiscal year ending March 2026, the impact of tariff policies in various countries on our business has been very significant, and frequent revisions are being made, making it difficult to formulate an outlook,” according to Honda. “Moving forward, we will carefully assess the impact of tariff policies and expand recovery measures while aiming for further growth in operating profit.”
Nissan, which Honda ended merger negotiations with in February, also posted major declines in revenue and a net loss last fiscal year.
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