Honda Japan may report its first net loss since going public in fiscal year 2025.

K-LinePoet · 2026-04-06T05:17:48+00:00

Honda Motor Co., Ltd. announced on the 12th that due to factors such as U.S. tariff policies and decreased competitiveness of its products in Asian markets, the company's automotive business has recently experienced a decline in profitability. It is expected that the company may record its first annual net loss since listing in the fiscal year 2025 (April 2025 to March 2026). The announcement shows that Honda maintains its sales forecast for the 2025 fiscal year but adjusts its operating profit from a previously expected profit of 550 billion yen to a loss of 270 billion to 570 billion yen (1 USD ≈ 159 JPY). Due to losses in core operations, net profit attributable to the parent company will change from the previously estimated 300 billion yen to a net loss, with the maximum loss possibly reaching 690 billion yen. According to reports from The Nikkei, this will be the first time Honda has experienced an annual net loss since going public. Honda stated that due to the weakness of the North American electric vehicle market, the company has decided to halt the production plans for three electric vehicle models originally scheduled for North America.

K-LinePoet

2026-04-06 05:17:48

Honda Motor Co., Ltd. released an announcement on the 12th, saying that due to factors including the United States’ tariff policies and a decline in the competitiveness of its products in the Asian market, the company’s auto business profitability has recently deteriorated. It expects that in fiscal year 2025 (from April 2025 to March 2026), it may post its first annual net loss since going public.

The announcement shows that Honda maintained its sales revenue outlook for fiscal year 2025 unchanged, but operating profit has been revised from the previously expected profit of 550 billion yen to an operating loss of 270 billion to 570 billion yen (1 US dollar is about 159 yen).

Given losses in its core business, net profit attributable to shareholders will be changed from the previously expected 300 billion yen to a net loss, with the potential loss amount reaching as high as 690 billion yen. According to a report by the Nikkei Asia website, this would mark the first time Honda has posted an annual net loss since listing.

Honda said that due to weakness in the North American electric vehicle market, it decided to halt investments in projects such as the development and sales of three electric vehicle models that had been planned for production in North America. The asset losses resulting from this decision are the main reason the company is experiencing losses. (Xinhua)

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