Honda Motor (7267) Q2 2025 earnings summary

Executive summary

• Sales revenue for the six months ended September 30, 2024, rose 12.4% year-over-year to JPY 10,797.6 billion, with operating profit up 6.6% to JPY 742.6 billion and a margin of 6.2%, but net profit declined 19.7% to JPY 494.6 billion due to lower equity method income and higher expenses.

• Strong motorcycle sales, especially in Asia and India, offset weaker automobile sales in China, while North America and Japan saw increased auto sales, aided by new EV and HEV models.

• Interim dividend set at JPY 34 per share, with annual dividend forecast unchanged at JPY 68; share buyback program expanded by JPY 100 billion.

• Full-year operating profit forecast remains at JPY 1.42 trillion, but profit attributable to owners is revised down by JPY 50 billion to JPY 950 billion.

• Three-for-one stock split effective October 1, 2023, reflected in EPS calculations.

Financial highlights

• Operating profit for the first two quarters was JPY 742.6 billion, up JPY 46 billion year-over-year.

• Net profit for the period attributable to owners was JPY 494.6 billion, down from JPY 616.3 billion year-over-year.

• Free cash flow for non-financial services businesses was JPY 683.8 billion for the first half; net cash at period end was JPY 1,323.5 billion.

• Operating cash flows after R&D adjustment reached JPY 1,285.1 billion.

• Investment profit and loss by equity method was negative JPY 20.7 billion, down JPY 87.4 billion year-over-year.

Outlook and guidance

• Full-year sales revenue forecast raised to JPY 21,000 billion (+2.8%), with operating profit expected at JPY 1,420 billion (+2.8%), but net profit guidance lowered to JPY 950 billion (-14.2%) due to reduced equity method income.

• Annual EPS forecast revised down to JPY 202.00.

• Interim dividend set at JPY 34 per share; annual dividend guidance unchanged at JPY 68.

• Share buybacks increased by up to JPY 100 billion, in addition to the previously announced JPY 300 billion.

• Full-year motorcycle unit sales forecast increased to 20.2 million, mainly due to growth in Asia.