Honda is recalling nearly 206,000 Passport and Pilot vehicles that could potentially experience a fuel leak. The automaker announced the move on Thursday, saying the affected 2023-2024 Passport and 2023-2025 Pilot sport utility vehicles “may have an incomplete connection between the fuel filler neck tube and fuel filler pipe that could cause the two components to separate in a crash, allowing fuel to leak and increasing the risk of fire or injury.”Per a National Highway Traffic Safety Administration recall ...

As Japan’s auto industry recovers modestly, the focus is on its two largest players, Toyota (TM) and Honda (HMC) . While Toyota's stock is down 4% and Honda has lost 16% year to date, both have outperformed the industry’s 19% decline.As the industry undergoes a transformation toward electrification and sustainability, both companies are adjusting their strategies to maintain a competitive edge. With Japan’s GDP rebounding and vehicle demand recovering globally, Toyota and Honda stand poised to capitalize on ...

Honda Motor Co., Ltd. (HMC) has established a demonstration facility in Sakura City, Japan, to advance its efforts in mass-producing solid-state batteries. These batteries are expected to offer longer range and greater durability EVs at reduced costs. Unlike conventional lithium-ion batteries, solid-state batteries replace liquid electrolytes with dry conductive materials. This change promises increased energy density and extended battery life but also requires an entirely new production process.Numerous co ...

Core Insights - Honda is the world's largest engine manufacturer, powering approximately 27 million vehicles and other items, primarily with internal combustion engines [1] - The company is facing challenges in key markets, particularly China, and is struggling to adapt to the electric vehicle (EV) era, having been slow to release new models and relying on partnerships for technology [2][6] - Honda was once seen as an innovative leader in the automotive industry, known for both affordable cars like the Civic and high-performance models like the NSX, which challenged established European sports car manufacturers [3][4][5] Company Performance - The NSX represented Honda's capabilities at its peak, but the company has since lost its competitive edge, particularly as consumer preferences shift away from manual transmissions and traditional high-revving engines [5] - Honda's current EV strategy involves significant investment, with plans to allocate $65 billion globally, including $11 billion in Canada and $3.5 billion for U.S. facility upgrades [7] - In 2023, Honda was the second-best-selling hybrid brand in the U.S., trailing only Toyota, which may provide short-term volume boosts [8] Market Outlook - Experts express concern over Honda's ability to keep pace with the rapid shift towards battery-electric vehicles, indicating uncertainty about the company's long-term competitiveness in the evolving automotive landscape [9]

Honda (HMC) reported earnings of 43 cents per share for second-quarter fiscal 2025, missing the Zacks Consensus Estimate of 86 cents. The bottom line also declined from the year-ago profit of $1.07 per share. Quarterly revenues totaled $36.24 billion, surpassing the Zacks Consensus Estimate of $35.6 billion as well as the year-ago period figure of $34.5 billion.Stay up-to-date with the quarterly releases: See Zacks Earnings Calendar.Segmental Highlights For the three-month period, which ended on Sept. 30, 2 ...

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[Consolidated Financial Results for the Fiscal First Half Year Ended September 30, 2024](index=4&type=section&id=Consolidated%20Financial%20Results%20for%20the%20Fiscal%20First%20Half%20Year%20Ended%20September%2030%2C%202024) [Summary of Consolidated Financial Results](index=4&type=section&id=1.%20Consolidated%20Financial%20Results%20for%20the%20Six%20Months%20Ended%20September%2030%2C%202024) For H1 FY2025, sales revenue grew 12.4% to ¥10.8 trillion, while net profit attributable to owners declined 19.7% Consolidated Operating Results (Six Months Ended Sep 30) | Indicator | 2024 (JPY millions) | 2023 (JPY millions) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Sales Revenue | 10,797,613 | 9,609,392 | +12.4% | | Operating Profit | 742,608 | 696,573 | +6.6% | | Profit for the period attributable to owners | 494,683 | 616,301 | -19.7% | | Comprehensive Income | 141,946 | 1,479,892 | -90.4% | | Basic EPS (Yen) | 103.25 | 124.63 | -17.2% | Consolidated Financial Position | Indicator | As of Sep 30, 2024 (JPY millions) | As of Mar 31, 2024 (JPY millions) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 29,273,879 | 29,774,150 | -¥500,271M | | Total Equity | 12,672,556 | 13,005,872 | -¥333,316M | | Equity attributable to owners of the parent | 12,391,444 | 12,696,995 | -¥305,551M | Forecast of Consolidated Financial Results for FY ending Mar 31, 2025 | Indicator | Full-Year Forecast (JPY millions) | YoY Change (%) | | :--- | :--- | :--- | | Sales Revenue | 21,000,000 | +2.8% | | Operating Profit | 1,420,000 | +2.8% | | Profit attributable to owners | 950,000 | -14.2% | | EPS (Yen) | 202.00 | N/A | - A **three-for-one stock split** was implemented on October 1, 2023, with prior period per-share data adjusted accordingly[10](index=10&type=chunk)[11](index=11&type=chunk) [Condensed Consolidated Interim Financial Statements](index=6&type=section&id=Condensed%20Consolidated%20Interim%20Financial%20Statements) The statements show increased revenue but lower net profit and cash flow due to finance costs and currency effects [Condensed Consolidated Statements of Financial Position](index=7&type=section&id=%5B1%5D%20Condensed%20Consolidated%20Statements%20of%20Financial%20Position) Total assets slightly decreased to ¥29.27 trillion, with equity declining due to treasury stock purchases Key Balance Sheet Items (in JPY millions) | Account | Sep 30, 2024 | Mar 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **29,273,879** | **29,774,150** | | Total Current Assets | 11,518,144 | 11,872,564 | | Total Non-current Assets | 17,755,735 | 17,901,586 | | **Total Liabilities** | **16,601,323** | **16,768,278** | | **Total Equity** | **12,672,556** | **13,005,872** | | Equity attributable to owners | 12,391,444 | 12,696,995 | | Treasury Stock | (775,202) | (550,808) | [Condensed Consolidated Statements of Income and Comprehensive Income](index=8&type=section&id=%5B2%5D%20Condensed%20Consolidated%20Statements%20of%20Income%20and%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Sales revenue grew to ¥10.80 trillion, but profit and comprehensive income fell sharply due to adverse financial items Condensed Consolidated Statements of Income (Six Months Ended Sep 30, in JPY millions) | Indicator | 2024 | 2023 | | :--- | :--- | :--- | | Sales Revenue | 10,797,613 | 9,609,392 | | Operating Profit | 742,608 | 696,573 | | Profit before income taxes | 741,953 | 879,285 | | **Profit for the period** | **526,847** | **653,925** | | Profit attributable to owners | 494,683 | 616,301 | Condensed Consolidated Statements of Comprehensive Income (Six Months Ended Sep 30, in JPY millions) | Indicator | 2024 | 2023 | | :--- | :--- | :--- | | Profit for the period | 526,847 | 653,925 | | Exchange differences on translating foreign operations | (409,590) | 768,426 | | Total other comprehensive income | (384,901) | 825,967 | | **Comprehensive income for the period** | **141,946** | **1,479,892** | [Condensed Consolidated Statements of Changes in Equity](index=10&type=section&id=%5B3%5D%20Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Equity) Total equity decreased by ¥333.3 billion, driven by dividends, share buybacks, and other comprehensive losses Changes in Equity (Six Months Ended Sep 30, 2024, in JPY millions) | Description | Amount | | :--- | :--- | | Balance as of April 1, 2024 | 13,005,872 | | Profit for the period | 494,683 | | Other comprehensive income, net of tax | (387,571) | | Dividends paid | (188,418) | | Purchases of treasury stock | (224,716) | | **Balance as of September 30, 2024** | **12,391,444** | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=%5B4%5D%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations decreased significantly, leading to a net reduction in cash and cash equivalents Key Cash Flow Data (Six Months Ended Sep 30, in JPY millions) | Indicator | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | 68,691 | 379,952 | | Net cash used in investing activities | (519,106) | (289,126) | | Net cash provided by financing activities | 317,601 | 243,047 | | **Net change in cash and cash equivalents** | **(332,276)** | **637,499** | | Cash and cash equivalents at end of period | 4,622,289 | 4,440,513 | [Notes to Condensed Consolidated Interim Financial Statements](index=12&type=section&id=%5B6%5D%20Notes%20to%20Condensed%20Consolidated%20Interim%20Financial%20Statements) Notes detail segment performance, a new share repurchase program, and contingencies for airbag inflator costs Segment Performance (Six Months Ended Sep 30, 2024, in JPY millions) | Segment | External Sales Revenue | Segment Profit (Loss) | | :--- | :--- | :--- | | Motorcycle Business | 1,810,786 | 325,852 | | Automobile Business | 6,987,551 | 258,037 | | Financial Services Business | 1,811,879 | 162,707 | | Power Products and Other | 187,397 | (3,988) | - On November 6, 2024, the Board of Directors approved the acquisition of up to 70 million shares of its own common stock for a total amount of up to **¥100 billion**[29](index=29&type=chunk) - Honda continues to face potential costs related to **airbag inflator recalls**, with future losses that cannot be reasonably estimated at this time[30](index=30&type=chunk) [Notice Concerning Acquisition of the Company's Own Shares](index=15&type=section&id=Notice%20Concerning%20Acquisition%20of%20the%20Company's%20Own%20Shares) The Board approved a share buyback of up to 70 million shares for ¥100 billion to improve capital efficiency - The primary reasons for the share repurchase are to **improve the efficiency of its capital structure** and to implement a flexible capital strategy[34](index=34&type=chunk) Details of Share Acquisition Program | Detail | Specification | | :--- | :--- | | Class of shares | Common stock | | Total number to be acquired | Up to 70,000,000 shares (1.5% of issued shares excl. treasury) | | Total amount | Up to 100 billion yen | | Period of acquisition | November 7, 2024 to October 31, 2025 | | Method of acquisition | Market purchases on the Tokyo Stock Exchange | Treasury Stock as of September 30, 2024 | Description | Number of Shares | | :--- | :--- | | Total issued shares (excluding treasury stock) | 4,682,564,269 | | Total treasury stock | 597,435,731 |

Honda Motor (HMC) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system. ...

Company Strategy - Honda Motor is doubling down on its commitment to transition to an all-electric fleet by 2040, with a significant portion of manufacturing to be based in North America [1] Historical Context - Honda Motor was the first Japanese automaker to produce motorized vehicles in the US, starting with motorcycles in Marysville, Ohio [1] Industry Expertise - The author is an acknowledged expert on the world automotive industry, with extensive experience writing for major publications such as The Wall Street Journal, New York Times, Detroit Free Press, and Bloomberg [2]

Core Points - Honda is recalling 780,000 vehicles in North America due to concerns over a high-pressure fuel pump that may crack and leak fuel [1][2] - The recall affects various models including Accord, CR-V Hybrid, and Honda Civic from the years 2023 to 2025, with 720,000 vehicles in the United States and approximately 61,000 in Canada [2] - Dealers will inspect and replace the high-pressure fuel pump if necessary, as cracks may form inside the pump leading to fuel leaks or odors [2] - Honda has received 145 warranty claims related to this issue but has reported no injuries [2] - The company confirmed the presence of a fuel leak and odor in September and subsequently halted shipments of the affected vehicles [2]