Honda Motor(US:HMC) Zhi Tong Cai Jing·2026-02-10 08:08Core Insights - Honda Motor Co. reported a 61.4% year-on-year decline in operating profit for Q3, marking the fourth consecutive quarter of decline, primarily due to U.S. import tariffs and weak electric vehicle demand [1] - The company's Q3 operating profit was 153.4 billion yen (approximately $987.07 million), falling short of analysts' expectations of 174.5 billion yen [1] - Honda maintained its operating profit guidance for the fiscal year ending March 2026 at 550 billion yen, significantly lower than the previous fiscal year's 1.21 trillion yen [1] Financial Performance - Q3 revenue decreased by 3.4% to 5.34 trillion yen [1] - For the fiscal year ending March 31, 2026, Honda revised its sales revenue forecast to 21.1 trillion yen, a decrease of 588.7 billion yen or 2.7% from the previous forecast [2] - Operating profit for the same fiscal year is projected at 550 billion yen, down 663.4 billion yen or 54.7% from the previous year [2] Market Dynamics - Honda's automotive business has faced challenges, including weak sales and high tariffs in the U.S., along with increasing competition from China [1] - Despite these challenges, strong demand for hybrid vehicles and profitable motorcycle operations have somewhat mitigated the decline [1] - The company expects a total sales revenue of 21.1 trillion yen for the year, an increase from the earlier estimate of 20.7 trillion yen [1]