Honda Motor (7267) Q4 2026 earnings summary

Executive summary

• Sales revenue for the year ended March 2026 rose 0.5% year-over-year to JPY 21,796.6 billion, driven by growth in the Motorcycle segment, despite significant EV-related losses and negative FX impacts.

• Operating profit was a loss of JPY 414.3 billion, but adjusted operating profit excluding EV-related losses was JPY 1,039.3 billion.

• Net loss attributable to owners was JPY 423.9 billion, a decrease of JPY 1,259.7 billion year-over-year.

• Motorcycle business achieved record-high unit sales and operating profit, driven by strong sales in Asia and South America.

• Automobile business faced headwinds from higher tariffs, semiconductor shortages, and EV strategy changes, but maintained profitability excluding EV-related losses.

Financial highlights

• EV-related losses for FY2026 totaled JPY 1,577.8 billion, including JPY 1,453.6 billion in operating profit and JPY 124.1 billion from equity method investments.

• Free cash flow (excluding financial services) was JPY 1.58 trillion; net cash balance at year-end was JPY 3.32 trillion.

• R&D-adjusted operating cash flow remained strong at JPY 2.66 trillion.

• Earnings per share was -106.06 yen, but adjusted EPS was 199.02 yen.

• Annual dividend maintained at JPY 70 per share.

Outlook and guidance

• FY March 2027 forecast: Sales revenue projected at JPY 23,150.0 billion (+6.2% YoY); operating profit (including EV losses) projected at JPY 500 billion.

• Adjusted operating profit (excluding EV losses) forecasted at JPY 1 trillion.

• Net profit attributable to owners forecast at JPY 260.0 billion.

• Motorcycle unit sales expected to reach 22.8 million; automobile sales to increase in North America but decline in China and Asia.

• Capital expenditures and R&D spending to rise, especially for hybrid and battery production.