Honda Motor (7267) Q3 2026 earnings summary

Executive summary

• Operating profit for the nine months ended December 31, 2025, was JPY 591.5 billion, down 48.1% year-over-year, impacted by significant one-time EV-related expenses and tariff impacts, with record-high motorcycle sales and margins driven by strong demand in India and Brazil.

• Automobile segment posted an operating loss of JPY 166.4 billion, mainly due to JPY 267.1 billion in one-time EV-related expenses and tariff impacts, despite price revisions.

• Cash flow generation remained robust, with operating cash flow after R&D adjustment at JPY 1,855.8 billion, in line with the previous year.

• Sales revenue for the nine months was JPY 15,975.6 billion, down 2.2% year-over-year, mainly due to negative foreign currency effects.

• Profit attributable to owners of the parent fell 42.2% to JPY 465.4 billion year-over-year.

Financial highlights

• Q3 operating profit: JPY 591.5 billion, down JPY 548.4 billion year-on-year.

• Profit attributable to owners: JPY 465.4 billion, down JPY 339.8 billion year-on-year.

• Earnings per share declined to 115.53 yen from 169.69 yen year-over-year.

• Free cash flow (excluding financial services): JPY 917.4 billion; net cash at Q3 end: JPY 3,170.7 billion.

• Sales revenue for the nine months was JPY 15,975.6 billion, down from JPY 16,332.2 billion a year earlier.

Outlook and guidance

• Full-year operating profit forecast for FYE March 31, 2026, is JPY 550 billion, with profit for the year projected at JPY 300 billion, unchanged from previous guidance.

• Tariff impact forecast reduced from JPY 450 billion to JPY 310 billion.

• Full-year dividend forecast maintained at 70 JPY per share; 747 million treasury shares to be cancelled.

• Capital expenditures for FYE March 31, 2026, are expected to rise sharply to JPY 1,050.0 billion.

• Exchange rate assumption for FY: 140 JPY/USD.