Honda Motor (7267) Q1 2025 earnings summary

Executive summary

• Sales revenue rose 16.9% year-over-year to JPY 5,404.8 billion, with operating profit up 22.9% to JPY 484.7 billion (9% margin), driven by strong global motorcycle sales (notably India and Brazil) and robust hybrid automobile sales, despite challenges in China and Thailand.

• Profit for the quarter attributable to owners increased 8.7% year-on-year to JPY 394.6 billion.

• Total assets increased to JPY 31,311.9 billion as of June 30, 2024, mainly due to higher financial service receivables and currency effects.

• Total equity rose to JPY 13,697.6 billion, reflecting increased retained earnings and positive currency translation.

Financial highlights

• Motorcycle unit sales increased to 5,062,000 units, mainly in Asia; automobile sales totaled 869,000 units, impacted by a decline in China.

• Power product sales were 822,000 units, with declines in North America and Europe.

• Operating profit rose by JPY 90.2 billion year-on-year, reaching JPY 484.7 billion; positive impacts from pricing (JPY 159.8 billion) and exchange rates (JPY 47.5 billion), offset by higher expenses and incentives.

• Free cash flow (excluding financial business) was JPY 73.9 billion; net cash at quarter-end was JPY 3.7443 trillion.

• Basic and diluted EPS were JPY 81.81, up from JPY 73.02 year-over-year.

Outlook and guidance

• Full-year FY2025 sales revenue forecast at JPY 20,300 billion, down 0.6% from prior year.

• Operating profit projected at JPY 1,420 billion (+2.8%), but net profit attributable to owners expected to decline 9.7% to JPY 1,000 billion.

• Annual dividend guidance maintained at JPY 68 per share.

• Motorcycle sales forecast unchanged at 19.8 million units; automobile forecast revised down to 3.9 million units due to China.