Core Insights - OMC Power is pioneering the repurposing of EV batteries in India, aiming to utilize their substantial second life for energy storage solutions in various market segments [6] - The company has partnered with Honda Motor Co. Ltd, which will supply used EV batteries for repurposing for seven years after three years of usage [3][6] - OMC Power is investing Rs 4,000 crore to develop a renewable energy portfolio of 1 GWp by 2030, with a significant portion coming from rooftop solarisation [6] Company Initiatives - The CEO of OMC Power highlighted the company's focus on repurposing EV batteries for home and commercial use, particularly in uninterrupted power supply (UPS) applications [6] - Initial pilot projects have shown positive customer experiences, including a recent project at a school in Hardoi, Uttar Pradesh, which involved a solar rooftop installation [5][6] - The company expects Honda to produce 6 million EV batteries annually, which will be available for repurposing in the coming years [5][6] Market Context - The repurposing of EV batteries is a new application area in India, addressing growing concerns about the future of EV batteries [6] - OMC Power's initiatives include rooftop solarisation, EPC, greening telecom infrastructure, and mini-grid development, indicating a diverse approach to renewable energy solutions [6]

Core Insights - Honda (HMC) reported earnings of 76 cents per share for Q3 of fiscal 2026, exceeding the Zacks Consensus Estimate by 90.2%, but down from $1.31 per share in the same quarter last year [1][10] - Quarterly revenues were $34.7 billion, a decrease from $36.3 billion year-over-year [1][10] Segmental Highlights - The Automobile segment's revenues decreased by 8.8% year-over-year to ¥3.43 trillion ($22.3 billion), resulting in an operating loss of ¥93.4 billion ($606.3 million), compared to an operating income of ¥144.6 billion in the same quarter of fiscal 2025 [2][10] - The Motorcycle segment reported revenues of approximately ¥1.01 trillion ($6.58 billion), an increase of 13.1% year-over-year, with an operating profit of ¥178.3 billion ($1.15 billion), down 1.3% year-over-year [3] - Revenues from the Financial Services segment totaled ¥879 billion ($5.7 billion), up 3.5% year-over-year, with an operating profit of ¥74.8 billion ($485 million), down 9.1% year-over-year [3] - Revenues from Power Products and Other Businesses were ¥97.5 billion ($632 million), a decline of 0.6% year-over-year, with an operating loss widening to ¥6.3 billion ($40.9 million) [4] Financials & FY26 Outlook - As of Dec. 31, 2025, consolidated cash and cash equivalents were ¥4.85 trillion ($31 billion), while long-term debt stood at approximately ¥8.29 trillion ($53.1 billion) [5] - For fiscal 2026, Honda projects consolidated sales volumes of 14.25 million units for Motorcycles, 2.64 million units for Automobiles, and 3.67 million units for Power Products, indicating a 4.1% growth in Motorcycles but a decline of 7% and 0.8% in Automobiles and Power Products, respectively [6] - Honda forecasts fiscal 2026 revenues of ¥21.1 trillion, a decline of 2.7% year-over-year, with an operating profit of ¥550 billion, indicating a contraction of 54.7% year-over-year [7]

Core Viewpoint - Honda Marine has appointed Joshua Matthews as the new Division Director, succeeding Daniel Sherlock, who has retired after a 20-year career at American Honda Motor Co., Inc. [1][7] Group 1: Leadership Transition - Joshua Matthews will lead the development of integrated strategies, business planning, and operational execution for Honda Marine, focusing on strengthening relationships with dealers, sales channels, and customers to drive sustainable growth [3][4] - Daniel Sherlock is recognized for his leadership and dedication during his tenure, and the company expresses gratitude for his contributions [4] Group 2: Company Overview - Honda Marine is a division of Honda Power Sports & Products, specializing in a complete range of marine outboard motors powered exclusively by four-stroke engines, which have been designed and built since 1964 [2][5] - The company has set benchmarks for innovation, fuel efficiency, quiet operation, and performance in the marine outboard motor industry [2][5] Group 3: Product and Compliance - Honda Marine's product line includes models ranging from 2.3 to 350 horsepower, all meeting the California Air Resources Board (CARB) 3-star standards, ensuring regulatory compliance across all 50 states [5]

Core Viewpoint - Honda reported a 42% drop in profit for the nine months through December, primarily due to U.S. tariffs impacting earnings, marking the second consecutive year of profit decline during this period [1] Financial Performance - Honda's profit for the three quarters totaled 465.4 billion yen ($3 billion), down from 805.2 billion yen [1] - Sales for the same period decreased by 2.2% to 15.98 trillion yen ($102.6 billion) compared to the previous year [1] - The company maintained its full fiscal year profit forecast at 300 billion yen ($1.9 billion) [1] Market Dynamics - The slowdown in electric vehicle (EV) sales in the U.S. market was identified as a negative factor for Honda [1] - Honda reduced its global EV sales ratio projection for 2030 to 20% from a previous target of 30% and canceled the development of certain EV models due to market changes [1] Tariff Impact - U.S. tariffs on automobiles and auto parts were reduced from 25% to 15% by the Trump administration, which has favored the oil and gas industry [1] - Tariffs have significantly affected Japan's export-reliant economy, including its automakers [1] Industry Context - Toyota Motor Corp., another major Japanese automaker, also reported a decline in profit recently [1] - Japan's new Prime Minister Sanae Takaichi, who recently won a parliamentary election, is expected to promote policies aimed at boosting growth through increased government spending, particularly in technology and defense [1] Stock Market Reaction - Honda's stock rose by 2.1% in trading following the profit report [1] - The Nikkei 225 benchmark index increased by 2.3%, reaching a record high for the second consecutive day, partly due to Takaichi's popularity [1]

Financial Data and Key Metrics Changes - The operating profit for the third quarter was JPY 591.5 billion, a decrease of JPY 548.4 billion year-on-year [2][6] - Operating cash flow after R&D adjustment was JPY 1,855.8 billion, consistent with the same period last year [3] - The forecast for operating profit for the fiscal year ending March 2026 remains at JPY 550 billion, with profit for the year unchanged at JPY 300 billion [3][5] Business Segment Data and Key Metrics Changes - Motorcycle operations achieved record high unit sales of 21.3 million units, driven by strong sales in India and Brazil [4] - Automobile operations forecast remains at 3.34 million units, with a noted decline in profit due to non-recurring expenses related to EVs and tariffs [4][5] - Power products business sold 2.507 million units, with mixed results across regions [6] Market Data and Key Metrics Changes - The competitive environment for automobiles in Asia is expected to intensify, necessitating increased incentives [3] - The impact from tariffs is projected to decrease from an initial forecast of JPY 450 billion to JPY 310 billion [3][41] - The exchange rate against the U.S. dollar is assumed at 140 JPY for the full-year period [5] Company Strategy and Development Direction - The company aims to enhance its competitive strength by reviewing strategies in light of stagnated EV market growth and intensified competition from emerging OEMs [13][14] - Plans include settling losses related to EVs sold in North America and launching next-generation hybrid systems [14][15] - The company is focusing on building a well-balanced business portfolio to generate cash flow and maintain a sound balance sheet [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledges challenges such as the stagnation of the EV market and the need for flexible strategies to adapt to changing environments [12][13] - The company is monitoring supply chain risks, particularly concerning rare earth metals and semiconductors, and is taking steps to mitigate these risks [39][40] - Future strategies will be communicated at an appropriate time during the coming fiscal year [14] Other Important Information - The forecast for the full-year dividend remains at 70 JPY per share, unchanged from previous forecasts [5] - The board has resolved to cancel 747 million treasury stocks [5] Q&A Session Questions and Answers Question: Full year outlook and automobile profitability - Management indicated that while expenses are expected to be high in the fourth quarter, the overall outlook remains unchanged, with a focus on managing tariff impacts and sales strategies in North America [20][21][23] Question: EV market trends and strategy - Management acknowledged the need to revisit EV strategies due to negative demand environments and competition from local manufacturers in China [30][31][32] Question: Semiconductor supply issues - Management reported that they have good prospects for preventing recurrence of semiconductor shortages and are actively managing supplier relationships [33][37][39] Question: Tariff impact and sales situation - Management explained that the tariff impact has decreased and outlined recovery plans involving local procurements and adjustments to logistics [41][42][43] Question: Collaboration with other companies - Management confirmed ongoing discussions with Nissan and other potential partners regarding co-development and cost-sharing strategies [58][59]

Financial Data and Key Metrics Changes - The operating profit for the third quarter was JPY 591.5 billion, achieving record high unit sales, operating profit, and operating margin [2][4] - Operating cash flow after R&D adjustment was JPY 1,855.8 billion, consistent with the same period last year [3] - The forecast for operating profit for the fiscal year ending March 2026 remains at JPY 550 billion, with profit for the year also unchanged at JPY 300 billion [3][5] Business Segment Data and Key Metrics Changes - Motorcycle operations achieved cumulative sales of 16.44 million units, driven by strong sales in India, Pakistan, and Brazil [7] - Automobile operations reported sales of 2.561 million units, reflecting a decline primarily due to semiconductor shortages [7] - The power products business sold 2.507 million units, with mixed results across regions [7] Market Data and Key Metrics Changes - The competitive environment for automobiles in Asia is expected to intensify, necessitating increased incentives [3] - The impact from tariffs was initially forecasted at JPY 450 billion but has been revised down to JPY 310 billion [3][5] - The exchange rate against the U.S. dollar is assumed at 140 JPY for the full-year period, with potential upside from yen depreciation [5][12] Company Strategy and Development Direction - The company aims to build flexible business characteristics to adapt to changing environments and enhance product features and cost competitiveness [15][16] - A fundamental review of strategies is underway to rebuild competitive strength in light of stagnated EV market growth and intensified competition from emerging OEMs [14][15] - The company is focusing on launching next-generation hybrid systems and enhancing the earning capability of hybrid models [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges such as stagnated EV market growth, less stringent environmental regulations, and heightened supply chain risks [14] - The company is maintaining its forecast despite uncertainties in the business environment, indicating cautious optimism for the fourth quarter [3][28] - Management emphasized the need for disciplined expenditure control and a review of capital expenditure plans aligned with market conditions [15][28] Other Important Information - The board of directors approved the cancellation of 747 million treasury stocks [6] - The company has adopted a DOE indicator to ensure stable returns and dividends aligned with growth, even in volatile environments [16] Q&A Session All Questions and Answers Question: Full year outlook and automobile profitability - Management indicated that while expenses are expected to increase in the fourth quarter, the overall outlook remains unchanged, with a focus on managing BEV-related costs and incentives [21][25][28] Question: EV market trends and strategy - Management acknowledged the need to revisit EV strategies due to negative demand environments and competition from local manufacturers in China [31][33] Question: Tariff impact and sales situation - Management explained that tariff impacts have decreased from initial forecasts, with recovery plans in place to mitigate costs [43][45][46] Question: Rare earth metals supply concerns - Management confirmed reliance on China for rare earth metals and emphasized the need for timely export applications and inventory management [50][52] Question: Collaboration with other companies - Management stated that while discussions with Nissan continue, they are open to exploring collaborations with other companies to reduce development costs [56][62]

Honda Motor (NYSE:HMC) Q3 2026 Earnings call February 10, 2026 03:00 AM ET Speaker2I thank you very much for taking time out of your busy schedule to attend our briefing today. We would now like to start Honda Motor Co., Ltd.'s financial results briefing for the third quarter of fiscal year ending March 2026. First of all, allow me to introduce the attendees today. Mr. Noriya Kaihara, Director, Executive Vice President, and Representative Executive Officer. Good to see you, everyone. We have Mr. Eiji Fujimu ...

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]

Core Insights - The Japanese carmaker reported significantly weaker nine-month results, impacted by U.S. tariffs and impairments related to electric vehicles [1] Financial Performance - The company's financial performance has been adversely affected by external factors, particularly U.S. tariffs, which have contributed to the decline in results [1] - Impairments associated with the transition to electric vehicles have also played a role in the weaker financial outcomes [1]

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