2 Vehicle Manufacturer Stocks to Watch: Honda and REV Group

Group 1: Honda Motor - Honda Motor reported a revenue of $100.39 billion for the nine months ending December 2025, a decrease of 2.2% year-over-year [1] - Operating profit fell by 48.1% to $3.72 billion, with the automobile segment experiencing a loss of $1.05 billion compared to a profit of $2.53 billion [1] - The company incurred $1.76 billion in EV-related charges, leading to a reduction in its 2030 global EV sales ratio target from 30% to 20% due to declining demand and competition [1] - Full-year FY2026 guidance indicates a projected operating profit decline of 54.7% and a net profit drop of 64.1%, with EPS expected at approximately $0.47, below the analyst consensus of $0.52 [1] - The motorcycle segment generated $18.44 billion in revenue, showcasing strong profitability and pricing power in emerging markets [1] - Honda announced a share buyback of 747 million shares, representing 14.1% of issued shares, and trades at a forward P/E of roughly 8x [1] - Morgan Stanley downgraded Honda to Equalweight on March 11, 2026, citing rising raw material costs and geopolitical pressures [1] Group 2: REV Group - REV Group achieved a revenue of $2.46 billion for FY2025, with operating income recovering to $192.8 million and gross margins expanding to 15% from 12% in FY2023 [1] - The company reported Q4 FY2025 EPS of $0.83, exceeding the consensus estimate of $0.78, with revenue up 11.1% year-over-year [1] - REV Group's stock increased by 107.27% over the past year, from $30.83 to $63.90, due to significant institutional accumulation [1] - Terex Corporation completed its acquisition of REV Group on February 4, 2026, with shareholders receiving $8.71 in cash plus 0.9809 Terex shares per REV share [1] - The acquisition is expected to create a leading specialty equipment manufacturer with anticipated synergies of $75 million by 2028 [1]