Honda and Nissan, which posted losses for the fiscal year ending March 2026, are reported to have returned to profit in their results for the first quarter of the current fiscal year. Profit pressure persisted due to factors including the Trump tariffs and soaring material costs, but signs of recovery are reportedly emerging, helped by the weaker yen.
Losses stood out in the financial results of Japanese automakers from 2025 through 2026. The Trump tariffs and soaring material costs were cited as the main factors, and some automakers reportedly found themselves revising their full-year forecasts downward.
Nissan has pursued a global restructuring, advancing plant closures and workforce reductions in an effort to move out of the red. Honda is said to have posted substantial losses in the fiscal years ending March 2026 and March 2027 due to a review of its EV strategy and the associated costs.
In their results for the first quarter of the current fiscal year, Nissan's consolidated operating profit reportedly improved by ¥157 billion from the previous year to ¥77.9 billion, while its full-year forecast was left unchanged at ¥200 billion. Meanwhile, Honda's operating profit for the first quarter was ¥530.7 billion, reportedly the highest ever for a quarter.
Japanese automakers, including the two companies, are benefiting from the weaker yen, but uncertainty over future market conditions and the situation in the Middle East is said to remain.