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, mainly due to one-time EV-related expenses and tariff impacts, despite record-high motorcycle sales of 16.44 million units and strong demand in India and Brazil.

• Automobile segment posted an operating loss of JPY 166.4 billion on 2.561 million units sold, primarily due to JPY 267.1 billion in one-time EV-related expenses and tariffs.

• Cash flow generation remained robust, with operating cash flow after R&D adjustment at JPY 1,855.8 billion, and free cash flow at JPY 917.4 billion; net cash at period end was JPY 3,170.7 billion.

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

Financial highlights

• Q3 operating profit was JPY 591.5 billion, down from JPY 1,139.9 billion a year earlier, with net profit attributable to owners at JPY 465.4 billion, a 42.2% decrease year-over-year.

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

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

• Total assets increased to JPY 32,849.6 billion as of December 31, 2025.

• Comprehensive income for the period was JPY 1,166.8 billion, up 8.2% year-over-year.

Outlook and guidance

• Full-year forecasts: sales revenue JPY 21,100 billion (down 2.7%), operating profit JPY 550 billion (down 54.7%), net profit JPY 300 billion (down 64.1%), and EPS 75.05 yen.

• Motorcycle unit sales forecast remains at a record 21.3 million; automobile unit sales forecast unchanged at 3.34 million.

• Tariff impact for the year revised down to JPY 310 billion from initial JPY 450 billion.

• Full-year dividend forecast maintained at 70 JPY per share; 747 million treasury shares to be cancelled on February 27, 2026.

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