Honda Motor (7267) Q2 2026 earnings summary

Executive summary

• Second quarter and first-half operating profit was JPY 438.1 billion, down 41% year-over-year, mainly due to tariffs and one-time EV-related expenses in the automobile segment.

• Motorcycle operations achieved record-high unit sales, operating profit, and margin, with strong performance in Brazil and Thailand offsetting declines in Vietnam.

• Automobile operations posted a JPY 73 billion operating loss, impacted by tariffs, semiconductor shortages, restructuring costs, and EV-related expenses.

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

Financial highlights

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

• Operating profit for the period: JPY 438.1 billion, down JPY 304.4 billion or 41% year-over-year.

• Profit attributable to owners: JPY 311.8 billion, down 37% year-over-year.

• Earnings per share decreased from JPY 103.25 to JPY 76.30.

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

Outlook and guidance

• Full-year sales revenue forecast: JPY 20,700 billion, down 4.6% year-over-year.

• Full-year operating profit forecast: JPY 550 billion, down 54.7% from previous year.

• Full-year profit forecast: JPY 300 billion, down 64.1% from previous year.

• 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 regional shifts.

• Dividend forecast for the year is JPY 70 per share, unchanged.