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Sep 30, 2025
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Honda Q2 2026 Earnings Report
Honda reported a sharp decline in operating profit in Q2 2026 due to EV-related impairments, despite strength in motorcycles and financial services.
Key Takeaways
Honda posted weaker operating income and net income in Q2 2026, largely impacted by the cancellation and downsizing of certain EV initiatives, while overall revenue remained stable.
Revenue reached ¥10.63 trillion, slightly down year-over-year.
Operating income declined 41% to ¥438.1 billion due to one-time EV-related charges.
Motorcycle segment saw increased profitability with revenue up to ¥1.92 trillion.
Basic EPS dropped to ¥76.30 from ¥103.25 the previous year.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Honda lowered its full-year outlook citing continued EV-related challenges and shifting global demand, but reiterated strength in ICE and hybrid products.
Positive Outlook
- Motorcycle segment maintained growth and strong margins
- Strong financial services performance contributed positively
- Effective cost management in core business lines
- Higher comprehensive income vs. last year
- Continued dividend payout with ¥35 per share planned
Challenges Ahead
- Significant losses from cancelled EV projects
- Reduced EV sales outlook due to policy and market slowdowns
- Automobile segment reported operating loss
- Operating profit dropped 41% YoY
- Net income attributable to shareholders declined 37%
Historical Earnings Impact
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Avg. Return Before/After Earnings
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