Honda revised up its net income forecast for the fiscal year ending March 2027 to ¥400 billion. Revenue is expected to reach ¥24.15 trillion and operating profit ¥650 billion, with the weaker yen expected to contribute.
Honda revised its full-year outlook for the fiscal year ending March 2027 under IFRS on 5 August, raising its net income forecast from the previous ¥260 billion to ¥400 billion. Revenue was also revised up from the previous forecast and is expected to reach ¥24.15 trillion, up 10.8% year on year. Operating profit is expected to increase by ¥150 billion from the previous forecast to ¥650 billion.
Foreign exchange movements are having a significant impact. Honda revised its assumed annual average exchange rate to ¥155 per US dollar from the previous ¥145, reducing the impact of yen appreciation. As a result, the yen-converted value of overseas sales is expected to increase, lifting operating profit by approximately ¥170 billion.
Meanwhile, concerns remain, including continued weak sales in the Chinese market. Overall, the outlook indicates that earnings are expected to improve against the backdrop of the weaker yen.