HONDA MOTOR CO LTD (HMC): Financial results for H1 2026
HONDA MOTOR CO LTD (HMC) furnished an SEC Form 6-K — earnings release. Table of Contents Contents Exhibit 1: Honda Motor Co., Ltd. announced its consolidated financial results for the fiscal first half year ended September 30, 2026. Table of Contents Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused
How this was made
The 30-second read
Why it matters
The results show significant growth in sales and profitability, likely prompting a positive price reaction.
Market read
First‑report earnings of a major global automaker; provides fresh data for traders.
What to watch
Currency fluctuations and supply‑chain constraints could temper upside despite earnings beat.
Honda H1 FY2026 (six months to Sep 30, 2026): sales revenue up 13.2% and operating profit up 48.1% to 648,737 yen million, with EV-related losses of 479,244 yen million in cost of sales.
Sales revenue rose 13.2%, operating profit rose 48.1%, profit attributable to owners of the parent rose 65.7%, and operating cash flow rose to 632,855 yen million from 365,861 yen million. Automobile segment profit remained negative at (5,785) yen million after EV-related losses of 479,244 yen million in cost of sales. The filing also discloses an unestimable possible airbag inflator loss and an acquisition that raised the stake in Astemo to 61.0%.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Sales revenue, six months ended Sep 30, 2026other | ¥12.04T | – | 13.2% |
| Cost of sales, six months ended Sep 30, 2026other | −¥9.82T | – | – |
| Selling, general and administrative expenses, six months ended Sep 30, 2026other | −¥1.08T | – | – |
| Research and development expenses, six months ended Sep 30, 2026other | −¥495.6B | – | – |
| Total operating costs and expenses, six months ended Sep 30, 2026other | −¥11.39T | – | – |
| Operating profit, six months ended Sep 30, 2026other | ¥648.7B | – | 48.1% |
| Share of profit of equity-method investments, six months ended Sep 30, 2026other | ¥85.29B | – | – |
| Interest income, six months ended Sep 30, 2026other | ¥97.49B | – | – |
| Interest expense, six months ended Sep 30, 2026other | −¥42.27B | – | – |
| Other, net finance income and costs, six months ended Sep 30, 2026other | −¥48.4B | – | – |
| Total finance income and finance costs, six months ended Sep 30, 2026other | ¥6.82B | – | – |
| Profit before income taxes, six months ended Sep 30, 2026other | ¥740.9B | – | 40.5% |
| Income tax expense, six months ended Sep 30, 2026other | −¥180.7B | – | – |
| Profit for the period, six months ended Sep 30, 2026other | ¥560.2B | – | 60.7% |
| Profit attributable to owners of the parent, six months ended Sep 30, 2026other | ¥516.8B | – | 65.7% |
| Profit attributable to non-controlling interests, six months ended Sep 30, 2026other | ¥43.43B | – | – |
| Basic and diluted earnings per share attributable to owners of the parent, six months ended Sep 30, 2026other | 132.75 (yen) | – | – |
| Comprehensive income for the period, six months ended Sep 30, 2026other | ¥382.7B | – | -21.7% |
| EV-related losses and expenses recognized in cost of sales, six months ended Sep 30, 2026other | ¥479.2B | – | – |
| Net cash provided by operating activities, six months ended Sep 30, 2026other | ¥632.9B | – | – |
| Net cash used in investing activities, six months ended Sep 30, 2026other | −¥659.7B | – | – |
| Payments for additions to property, plant and equipment, six months ended Sep 30, 2026other | −¥825.1B | – | – |
| Net cash provided by financing activities, six months ended Sep 30, 2026other | ¥464.5B | – | – |
| Dividends paid to owners of the parent, six months ended Sep 30, 2026other | −¥136.4B | – | – |
| Purchases and sales of treasury stock, net, six months ended Sep 30, 2026other | (0) (yen millions) | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Motorcycle BusinessThe filing prints the segment figures only and does not state a driver. Prior year: external revenue 1,920,724 and segment profit 368,277 (yen millions). | 2,272,519 (yen millions, external customers); segment profit 439,057 (yen millions); six months ended Sep 30, 2026 | – | – |
| Automobile BusinessThe filing states that the EV-related losses of 479,244 yen million in cost of sales, 5,621 yen million in R&D and a gain of 49,722 yen million in equity-method share of profit are included in this segment. Prior year: external revenue 6,859,418 and segment loss (73,060) (yen millions). | 7,541,807 (yen millions, external customers); segment profit (5,785) (yen millions); six months ended Sep 30, 2026 | – | – |
| Financial Services BusinessThe filing prints the segment figures only and does not state a driver. Prior year: external revenue 1,676,971 and segment profit 143,224 (yen millions). | 2,028,742 (yen millions, external customers); segment profit 210,997 (yen millions); six months ended Sep 30, 2026 | – | – |
| Power Products and Other BusinessesThe filing prints the segment figures only and does not state a driver. Prior year: external revenue 175,567 and segment loss (297) (yen millions). | 194,590 (yen millions, external customers); segment profit 4,468 (yen millions); six months ended Sep 30, 2026 | – | – |
Full year ending March 31, 2027 (forecast) outlook
- Revenue24,400,000 (yen millions), +11.9% versus the previous fiscal year
- NoteOperating profit: 780,000 (yen millions); the filing prints no % change for this line
- NoteProfit before income taxes: 790,000 (yen millions); the filing prints no % change for this line
- NoteProfit for the year: 580,000 (yen millions); the filing prints no % change for this line
- NoteProfit for the year attributable to owners of the parent: 500,000 (yen millions); the filing prints no % change for this line
- NoteEarnings per share attributable to owners of the parent: 128.44 (yen)
- NoteThe filing states that revisions to the forecast of consolidated financial results were most recently announced. The prior forecast figures are not printed in this document.
Capital returns
- Interim dividend per share for the fiscal year ending March 31, 2027: 35.00 yen at the second quarter-end. The forecast full-year dividend is 70.00 yen (35.00 yen per share at each of the two halves).
- Fiscal year ended March 31, 2026 total dividend per share: 70.00 yen.
- Dividends paid to owners of the parent: (136,430) yen millions in H1 2026 versus (147,960) yen millions in H1 2025.
- Purchases and sales of treasury stock, net: (0) yen millions in H1 2026 versus (670,181) yen millions in H1 2025 (cash flow statement).
- Scheduled date to commence dividend payments: December 8, 2026.
What drove it
- The filing states that, in H1 2026, the company recognized EV-related losses and expenses of 479,244 yen millions in cost of sales and 5,621 yen millions in R&D, and a gain of 49,722 yen millions in equity-method share of profit, all within the Automobile business. The company says these arise from the revision of EV product launch plans and the reassessment of its electrification strategy.
- The filing states that share of profit of equity-method investments includes a net gain of 41,789 yen millions recognized by an affiliate, consisting of compensation from a consolidated subsidiary partially offset by the associated EV-related losses.
- The filing states that additional provisions for EV-related losses mainly include 508,692 yen millions of losses or expenses from compensation to suppliers for parts of EV models, based on discussions with the suppliers.
- The filing states that the company acquired an additional 21.0% of Astemo on October 1, 2026 for 152,275 yen millions in cash, raising its equity interest from 40.0% to 61.0%, and that Astemo became a subsidiary. The company says Astemo is indispensable for enhancing its software-defined vehicle development capabilities and cost competitiveness.
Concerns
- Automobile Business segment profit was (5,785) yen millions in H1 2026, after (73,060) yen millions in H1 2025, and the filing attributes the EV-related losses to this segment.
- The filing states that there is a possibility of additional airbag inflator provisions, but it is not possible to reasonably estimate the amount and timing of potential future losses as of the report date.
- Other, net finance income and costs moved to (48,400) yen millions from 25,972 yen millions, and total finance income and costs fell to 6,820 yen millions from 78,380 yen millions.
- Comprehensive income fell 21.7% to 382,707 yen millions. The filing shows exchange differences on translating foreign operations of (152,123) yen millions in other comprehensive income for H1 2026, versus 66,225 yen millions in H1 2025.
- The Astemo acquisition consideration of 152,275 yen millions was paid in cash. The filing states that the initial accounting for the business combination is not complete, so the amounts recognized for acquired assets and liabilities are not disclosed.
What to watch
- Further EV-related losses and provisions in the second half, given the filing's statement that the company's compensation to suppliers was based on discussions with suppliers and that these items are in Automobile business results.
- Outcome of the airbag inflator matter and any additional provisions the company may need to recognize.
- Completion of the Astemo initial accounting and the consolidation effect of Astemo from October 1, 2026.
- Capital expenditure, which rose to 825,072 yen millions for property, plant and equipment in H1 2026 from 233,686 yen millions, against the full-year forecast.
- Achievement of the full-year forecast: sales revenue of 24,400,000 yen millions, operating profit of 780,000 yen millions and EPS of 128.44 yen, compared with H1 2026 results of 12,037,658 yen millions, 648,737 yen millions and 132.75 yen.
Balance sheet and cash flow
- Cash and cash equivalents: 5,503,834 yen millions at Sep 30, 2026 versus 5,066,828 yen millions at Mar 31, 2026 (statement of financial position).
- Total assets: 33,968,422 yen millions at Sep 30, 2026 versus 33,509,285 yen millions at Mar 31, 2026.
- Total equity: 12,291,642 yen millions at Sep 30, 2026 versus 12,148,072 yen millions at Mar 31, 2026. Equity attributable to owners of the parent: 12,036,750 yen millions versus 11,817,512 yen millions.
- Ratio of equity attributable to owners of the parent to total assets: 35.4% at Sep 30, 2026 versus 35.3% at Mar 31, 2026.
- Financing liabilities: current 4,951,646 yen millions and non-current 8,956,593 yen millions at Sep 30, 2026, versus current 5,004,712 yen millions and non-current 8,475,151 yen millions at Mar 31, 2026.
- Payments for additions to property, plant and equipment: (825,072) yen millions in H1 2026 versus (233,686) yen millions in H1 2025. Capital expenditures in the Financial Services segment: 1,556,226 yen millions in H1 2026 versus 1,376,166 yen millions in H1 2025.
- Net cash provided by operating activities: 632,855 yen millions in H1 2026 versus 365,861 yen millions in H1 2025.
- Net cash used in investing activities: (659,652) yen millions in H1 2026 versus (356,724) yen millions in H1 2025.
- Net cash provided by financing activities: 464,505 yen millions in H1 2026 versus 99,418 yen millions in H1 2025.
- Cash and cash equivalents at end of period: 5,503,834 yen millions in H1 2026 versus 4,677,894 yen millions in H1 2025.
Analysis
Honda reported H1 FY2026 (six months to September 30, 2026) under IFRS in yen. Sales revenue rose 13.2% to 12,037,658 yen millions, and operating profit rose 48.1% to 648,737 yen millions. Profit attributable to owners of the parent rose 65.7% to 516,761 yen millions, and basic and diluted EPS was 132.75 yen against 76.30 yen. The filing does not print a gross margin, and cost of sales rose from (8,483,760) to (9,817,353) yen millions without a printed percentage change.
The Automobile Business is the main point of attention in the period. The filing states that it recognized EV-related losses and expenses of 479,244 yen millions in cost of sales in H1 2026, compared with 139,888 yen millions in cost of sales in H1 2025 for the prior period's EV-related losses. Automobile segment profit was (5,785) yen millions, against (73,060) yen millions a year earlier. The filing also prints a 41,789 yen million net gain in equity-method share of profit, which it describes as compensation from a consolidated subsidiary partially offset by the associated EV-related losses. Motorcycle segment profit rose to 439,057 yen millions, Financial Services segment profit to 210,997 yen millions, and Power Products and Other Businesses to 4,468 yen millions. The filing does not state drivers for the non-automobile segment results.
Below operating profit, the picture is mixed. Share of profit of equity-method investments rose to 85,294 yen millions. Total finance income and costs fell to 6,820 yen millions from 78,380 yen millions, mainly because Other, net moved to (48,400) yen millions from 25,972 yen millions, and interest expense rose to (42,273) yen millions. Income tax expense was (180,660) yen millions, almost flat, so profit before income taxes of 740,851 yen millions converted into profit for the period of 560,191 yen millions. Comprehensive income fell 21.7% to 382,707 yen millions, as other comprehensive income was (177,484) yen millions, including exchange differences on translating foreign operations of (152,123) yen millions.
Cash generation and capital allocation moved in different directions. Net cash provided by operating activities rose to 632,855 yen millions from 365,861 yen millions. Investing outflows were (659,652) yen millions, with payments for property, plant and equipment of (825,072) yen millions against (233,686) yen millions a year earlier. Net cash provided by financing activities was 464,505 yen millions, and cash and cash equivalents closed at 5,503,834 yen millions. Dividends paid to owners of the parent were (136,430) yen millions, and net treasury stock purchases were nil, against (670,181) yen millions in the prior-year period. Equity attributable to owners of the parent was 12,036,750 yen millions, and the equity ratio was 35.4%.
The full-year forecast for the year ending March 31, 2027 is sales revenue of 24,400,000 yen millions (+11.9%), operating profit of 780,000 yen millions, profit before income taxes of 790,000 yen millions, profit for the year of 580,000 yen millions, profit attributable to owners of the parent of 500,000 yen millions, and EPS of 128.44 yen. The filing states that revisions to the forecast were most recently announced, but it does not print the earlier forecast, so no guidance comparison is possible from this document. The company also states that the Astemo acquisition, completed October 1, 2026, has an initial accounting that is not finished, and that a possible airbag inflator provision cannot be reasonably estimated.
Not in the filing
stated, not guessed- Gross margin for H1 2026 and H1 2025 is not printed and was not calculated.
- Year-on-year percentage changes for individual cost lines, EPS and segment revenue and profit are not printed.
- Quarterly (Q2 2026 standalone) figures are not printed; the filing presents six-month data only, so prior_quarter fields are null.
- The previous full-year forecast figures (sales revenue, operating profit, profit before tax, profit for the year, EPS) are not printed, so the guidance change and vs_prior_guidance comparison cannot be made.
- Forecast percentage changes for operating profit, profit before income taxes, profit for the year, profit attributable to owners and EPS are shown as dashes in the filing and are not reported.
- Consensus estimates, analyst expectations and share price reaction are not in the documents.
- Quotes from named executives are not in the documents (the filing contains only a signature block and no management commentary).
- Non-GAAP measures are not presented in the filing.
- Amounts for the Astemo acquisition at acquisition date (assets acquired and liabilities assumed) are not disclosed because the initial accounting is incomplete.
- Quantified amount of the possible airbag inflator loss is not disclosed; the company states it cannot reasonably estimate it.
- Segment yoy changes and the driver for the Motorcycle, Financial Services and Power Products segments are not printed.
- Balance sheet comparisons are printed against Mar 31, 2026 rather than a prior quarter, so they are reported in balance_sheet_cash_flow and not as prior_quarter values.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The filing is Honda's first half‑year earnings release for fiscal 2026, submitted via SEC Form 6‑K.
Ticker impact
Honda Motor Co. posted H1 2026 results: sales ¥12.04T (+13.2%), operating profit ¥648.7B (+48.1%), EPS ¥132.75 (up from ¥76.30).
likely upside as investors price in robust earnings beat
Quarterly numbers far exceed prior year and suggest momentum; no negative guidance noted.
Market effects
Automotive sector may see broader rally on Honda's strong earnings, supporting peers.
Japanese market likely gains from Honda's positive results.
Large‑cap earnings can influence global equity sentiment, especially in industrials.
Counterpoint
If the market has already priced in a strong rebound, the stock could face short‑term profit‑taking.
Key entities
- companyHonda Motor Co.
Japanese automotive and motorcycle manufacturer, ticker HMC.
