HMC · Honda Motor Co., Ltd.

Honda Motor Co., Ltd. disclosed its consolidated financial results for the fiscal year ended March 31, 2026 under IFRS, showing sales revenue of JPY 21,796.6 billion, a modest 0.5% increase from JPY 21,688.8 billion in FY2025, primarily driven by higher motorcycle business revenue. However, the company posted a significant operating loss of JPY 414.3 billion, contrasting sharply with the prior year's operating profit of JPY 1,213.5 billion. This deterioration was mainly attributed to EV-related losses and tariff impacts, partially offset by positive price and cost effects. Profit before income taxes swung to a JPY 403.3 billion loss from a profit, with loss attributable to owners of JPY 423.9 billion and basic EPS at -106.06 yen, down from 178.93 yen. Share of profit from equity-method investments was a JPY 162.1 billion loss versus a small prior-year gain. Management highlights EV losses in segment information, underscoring challenges in the electric vehicle transition amid competitive pressures. Balance sheet reflects total assets at JPY 33,509.3 billion, up due to operating lease equipment and forex effects, though equity declined to JPY 12,148.1 billion (35.3% ratio) from share repurchases and losses. Cash position strengthened with operating cash flow at JPY 1,135.3 billion, boosting cash equivalents to JPY 5,118.5 billion. Dividends remain steady at JPY 70 per share total for FY2026, payable June 9, 2026, with payout ratio not specified due to loss. For FY2027, Honda forecasts sales of JPY 23,150 billion (+6.2%), operating profit JPY 500 billion, and parent-attributable profit JPY 260 billion (EPS 66.79 yen), assuming JPY 145/USD. Profit bridge details EV loss normalization (+JPY 1,453.6 billion benefit from FY2026), offset by costs, R&D, currency (-JPY 142 billion), though tariffs improve (+JPY 147 billion). Exhibits also cover forecast vs. actual variances, executive/board changes, and indefinite suspension of the Ontario EV value chain plan, signaling strategic pivots in EV investments. Forward-looking statements caution on economic conditions and forex risks.