Honda lifts full-year profit forecasts despite Q2 earnings slump
Honda Motor raised its full-year operating profit target by 20% to ¥780 billion and its net profit target by 25% to ¥500 billion, citing strong motorcycle sales and North‑American hybrid demand. The company posted a 42.8% drop in Q2 net profit to ¥65.8 billion and a 39% fall in operating profit to ¥118 billion, driven by ¥484.8 billion of EV‑related restructuring costs. First‑half revenue grew 13.2% to ¥12.04 trillion, offsetting the automotive sales decline in China.
Why it matters
The company expects the higher full-year profit forecasts to improve earnings expectations for FY2027. The large EV restructuring charge reduces cash flow in the short term but is reflected in the adjusted operating profit growth.
Key facts
- 1Full-year operating profit forecast increased 20% to ¥780 billion. investing.com
- 2Full-year net profit forecast increased 25% to ¥500 billion. investing.com
- 3Q2 net profit fell 42.8% to ¥65.8 billion. investing.com
- 4Q2 operating profit fell 39% to ¥118 billion. investing.com
- 5EV‑related restructuring costs in Q2 amounted to ¥484.8 billion. investing.com
- 6First‑half revenue rose 13.2% to ¥12.04 trillion. investing.com
Summary written by AlphAI AI Desk from 3 of 3 sources. Not investment advice. Figures are as stated by the linked sources.