Honda upgraded its consolidated operating profit forecast for the fiscal year ending March 2027 from ¥500 billion to ¥650 billion. The revision reflects a review of its exchange-rate assumption and was adjusted to include the increase in NEV-related losses.
Honda released its consolidated earnings forecast for the fiscal year ending March 2027 on 5 July, raising its operating profit forecast from the previous ¥500 billion to ¥650 billion. Although it posted a loss in the previous fiscal year, Honda secured a return to profitability by raising its full-year assumed exchange rate from ¥145 to ¥155 per US dollar amid yen depreciation against the dollar.
Following the review of its exchange-rate assumption, EV-related losses were revised to ¥520 billion, an increase of ¥20 billion from the previous level. The outlook for the impact of sales volumes and raw material prices was left unchanged in light of the uncertainty surrounding the situation in the Middle East.
Consolidated operating profit for Apr-Jun 2026 was ¥530.7 billion, up 2.2 times year on year and a quarterly record. Motorcycle sales were strong in markets including India and Brazil, pushing the operating profit margin above 20%.
Meanwhile, in the automobile business, the shift to NEVs is advancing in China, making it difficult to expand a lineup centered on vehicles with internal combustion engines. In North America, the share temporarily exceeded 10% as gasoline prices rose and fuel-efficient vehicles sold well, although sales incentives were a burden at times. Full-year operating profit in the automobile business was boosted by exchange-rate effects and lower tariffs, reaching ¥192.1 billion.