Honda Motor (7267) Q2 2026 earnings summary

Executive summary

• Operating profit for the second quarter was JPY 438.1 billion, down 41% year-over-year, mainly due to tariffs and one-time EV-related expenses, while motorcycle operations achieved record high unit sales and profits, offsetting declines in Vietnam with strong performance in Brazil and Thailand.

• Automobile operations posted a segment loss of JPY 73 billion, impacted by tariffs, semiconductor shortages, restructuring, and one-time EV-related expenses, despite some positive price revisions.

• Sales revenue for the six months ended September 30, 2025, was JPY 10,632.6 billion, down 1.5% year-over-year.

• Comprehensive income surged 244.3% to JPY 488.7 billion, mainly due to positive other comprehensive income items.

Financial highlights

• Operating profit for Q2: JPY 438.1 billion; profit attributable to owners: JPY 311.8 billion; earnings per share decreased from JPY 103.25 to JPY 76.30.

• Operating cash flow after R&D adjustment: JPY 1,281.3 billion, stable year-over-year.

• Net cash balance at end of first half: JPY 3,053.9 billion.

• Free cash flow (excluding financial businesses): JPY 760.6 billion.

• Total assets increased to JPY 31,491.2 billion as of September 30, 2025.

Outlook and guidance

• Full-year sales revenue forecast: JPY 20,700.0 billion (down 4.6%), operating profit: JPY 550.0 billion (down 54.7%), profit for the year: JPY 300.0 billion (down 64.1%), and earnings per share forecast at JPY 75.05.

• Automobile unit sales forecast revised down to 3.34 million units due to semiconductor shortages and weak demand in China and ASEAN.

• Motorcycle unit sales forecast maintained at 21.3 million units, with declines in Vietnam expected to be offset elsewhere.

• Full-year dividend forecast unchanged at JPY 70 per share.