Honda Motor (7267) Q1 2026 earnings summary

Executive summary

• Operating profit for Q1 FY2025 was JPY 244.1 billion, down 49.6% year-over-year, mainly due to tariffs, nonrecurring EV-related expenses, and negative FX effects, with some offset from strong motorcycle sales in Brazil and Vietnam.

• Sales revenue for the quarter was JPY 5,340.2 billion, down 1.2% year-over-year, with automobile sales up but financial services revenue and FX effects weighing on results.

• Profit attributable to owners was JPY 196.6 billion, down 50.2% year-over-year.

• Comprehensive income for the period was negative JPY 3.8 billion, mainly due to adverse FX translation.

Financial highlights

• Operating profit margin declined to 4.6% from 9.0% year-over-year.

• Basic and diluted EPS dropped to JPY 46.80 from JPY 81.81 year-over-year.

• Free cash flow (excluding financial services) was JPY 294 billion; net cash balance at JPY 2,907.9 billion.

• Total assets decreased to JPY 29,874.6 billion from JPY 30,775.9 billion at March 31, 2025.

• Equity attributable to owners decreased to JPY 11,796.8 billion from JPY 12,326.5 billion at March 31, 2025.

Outlook and guidance

• Full-year operating profit forecast raised to JPY 700 billion, net profit to JPY 420 billion, and sales revenue to JPY 21,100.0 billion, reflecting revised tariff impacts and exchange rate assumptions.

• Operating margin for the year forecast at 3.3% versus 5.6% prior year.

• Dividend forecast maintained at 70 yen per share.

• Forecast revisions have been made since the previous announcement.