Honda warns of tougher year ahead after third quarter profit slide

Core Viewpoint - Honda Motor Co., Ltd has indicated a more challenging financial year ahead following a significant decline in profit for the fiscal third quarter ended December 31, 2025, despite maintaining substantial revenue levels [1] Financial Performance - For the nine months ending December 31, 2025, Honda reported consolidated sales revenue of approximately $107 billion, a decrease of 2.2% year-on-year [1] - Operating profit for the same period fell sharply by 48.1% to around $4.0 billion [1] - Profit before income taxes decreased by 37.0% to about $5.2 billion, while profit attributable to owners of the parent dropped 42.2% to around $3.1 billion [1] - Earnings per share attributable to owners of the parent declined to approximately $0.78, down from about $1.14 in the prior year [1] Financial Position and Balance Sheet - Honda's total assets increased to about $219 billion as of December 31, 2025, up from roughly $205 billion at the end of the previous fiscal year [1] - Total equity stood at around $85 billion, with the equity ratio attributable to owners of the parent slipping to 37.9% from 40.1% [1] - The company plans an annual dividend of about $0.47 per share for the fiscal year ending March 31, 2026, including a second-quarter-end dividend of around $0.24 per share [1] Full-Year Forecast - Honda revised its full-year sales revenue projection to about $141 billion, indicating a 2.7% decline from the previous year [1] - Operating profit for the full year is forecasted at roughly $3.7 billion, a decrease of 54.7% year-on-year [1] - Profit before income taxes is expected to fall by 52.9% to about $4.1 billion, while profit attributable to owners of the parent is projected at around $2.0 billion [1] - Full-year earnings per share are forecasted at approximately $0.51, suggesting continued earnings pressure despite stable revenue levels [1]