Honda Motor (7267) Q3 2025 earnings summary

Executive summary

• Sales revenue for the nine months ended December 31, 2024, rose 8.9% year-over-year to JPY 16,328.7 billion, driven by strong global motorcycle sales exceeding 15.5 million units and favorable currency effects.

• Operating profit increased 5.9% year-over-year to JPY 1,139.9 billion with a 7.0% margin, mainly due to price and cost impacts, though operating margin declined slightly.

• Automobile unit sales fell 9.5% to 2.82 million, mainly due to weakness in China, despite gains in North America and Japan.

• Profit for the period attributable to owners declined 7.4% year-over-year to JPY 805.2 billion, impacted by lower equity-method investment profit.

• Profit before income taxes declined 3.1% to JPY 1,225.6 billion, primarily due to lower equity-method investment contributions.

Financial highlights

• Operating cash flows after R&D adjustment reached JPY 1,945.0 billion for the nine-month period, flat year-on-year.

• Free cash flow (excluding financial services) was JPY 693.7 billion; net cash at quarter-end was JPY 3.78 trillion.

• Basic and diluted EPS for the nine months was JPY 169.69, down from JPY 176.78 year-over-year, reflecting a stock split.

• Capital expenditures for the nine months increased to JPY 320.8 billion, and R&D expenditures rose to JPY 805.8 billion.

• Total assets increased to JPY 31,374.1 billion as of December 31, 2024.

Outlook and guidance

• Full-year sales revenue forecast is JPY 21,600.0 billion, up 5.7% from the previous year.

• Operating profit is projected at JPY 1,420.0 billion, with an operating margin of 6.6%.

• Profit for the year is forecast at JPY 950.0 billion, a 14.2% decrease year-over-year.

• Motorcycle sales guidance revised upward to 20.6 million units, while automobile sales guidance revised downward to 3.75 million units.

• Dividend forecast remains unchanged at JPY 68 per share for the year.