Honda reports 42% plunge on net profits in April-December 2025

Core Insights - Honda Motor Company reported a 2.2% decline in global revenues to JPY 15,975.6 billion (US$104.4 billion) for the first three quarters of FY26, with significant drops in operating profit and net profit attributed to US import tariffs and costs related to its US battery electric vehicle (BEV) program [1][5] Financial Performance - Operating profit fell by 48% to JPY 591.5 billion (US$3.9 billion) and net profit decreased by 42% to JPY 465.4 billion (US$304.2 billion) [1] - Global vehicle sales decreased by 9.1% to 2.561 million units, with North America sales down 4.7% to 1.211 million units, Asia (excluding Japan) down 18.2% to 739,000 units, and Japan down 6.3% to 439,000 units [2] - Revenues from vehicle sales dropped by 4.3% to JPY 10,435 billion, and the automotive division reported an operating loss of JPY 166.4 billion compared to an operating profit of JPY 402.6 billion previously [2] Other Business Segments - Global motorcycle sales increased by 6% to 16.44 million units, while power products sales slightly declined to 2.5 million units [3] - The combined operating profit from motorcycles and financial services was JPY 758 billion, which offset the losses from the automotive division [3] Future Outlook - Honda maintained its global revenue forecast for the full fiscal year at JPY 21.1 trillion, a 2.7% decline from the previous year, but reduced its operating profit forecast to JPY 550 billion from JPY 700 billion [4] - The company kept its global vehicle sales forecast unchanged at 3.34 million units [4] - Honda plans to focus on enhancing the profitability of its internal combustion engine (ICE) and hybrid vehicle operations while reducing losses from its US battery BEV operations [5]