FINWIRES · TerminalLIVE
FINWIRES

Honda Motor Posts First Annual Loss in Nearly 70 Years as EV Costs, Tariffs Weigh

By
Honda Motor Posts First Annual Loss in Nearly 70 Years as EV Costs, Tariffs Weigh

Honda Motor (TYO:7267) posted its first annual loss in nearly 70 years as a listed company after mounting EV-related charges and tariff impacts pushed the Japanese automaker into the red despite resilient revenue.

Loss attributable to owners of the parent totaled 423.9 billion yen for the year ended March 31, compared with a profit of 835.8 billion yen a year earlier, according to a Thursday filing with the Tokyo Stock Exchange.

Loss per share came to 106.06 yen, compared with earnings per share of 178.93 yen a year earlier.

Revenue inched up 0.5% to 21.797 trillion yen from 21.689 trillion yen in fiscal 2025, supported by stronger motorcycle sales, though gains were partly offset by weaker automobile revenue and adverse currency translation effects.

Honda booked EV-related losses totaling 1.454 trillion yen during the fiscal year, contributing to an operating loss of 414.3 billion yen.

The automaker said the global EV market environment had shifted sharply, particularly in North America, where slowing demand growth and changes to policy support disrupted rollout plans.

Separately, Honda indefinitely suspended plans to establish a comprehensive electric vehicle value chain in Ontario, Canada, after previously delaying the project by about two years amid slowing EV demand.

Honda had unveiled the Canada EV supply chain project in April 2024 as part of efforts to expand its North American EV operations, before postponing the plan in May 2025 because of weaker-than-expected EV demand growth.

"In the United States, the expansion of the EV market has slowed due to revisions to EV incentives and the easing of fossil fuel regulations," Honda said, adding that it revised product launch plans, scrapped development of certain North America-focused EV models, and scaled back some alliance-linked production plans.

The automaker also said intensifying competition from emerging EV manufacturers in China prompted further revisions to launch plans for some electric vehicle models.

The company also said tariff impacts weighed on earnings during the year.

Meanwhile, Honda maintained its full-year dividend at 70 yen per share for fiscal 2026 and projected the same payout for fiscal 2027.

For fiscal 2027, the automaker forecasts revenue of 23.150 trillion yen and profit attributable to owners of the parent of 260 billion yen.

The company said it expects EV-related losses to narrow to 500 billion yen in fiscal 2027.

Related Articles

UK Economic Growth Picks Up in First Quarter on Services Boost
US Markets

UK Economic Growth Picks Up in First Quarter on Services Boost

The British economy grew in the first three months of 2026 as every output sector contributed to the quarterly gains, particularly the services segment.The UK's real gross domestic product edged up 0.6% in the quarter ended March, following a revised 0.2% expansion in the prior three-month period, according to preliminary data from the Office for National Statistics published Thursday. The latest figure matched the consensus estimate.On a yearly basis, the economy grew 1.1% in the quarter, compared with a 1% increase in the last three months of 2025 and the expected 0.8% gain."Growth picked up in the first quarter of the year, led by broad-based increases across the services sector. Within that wholesale, computer programming and advertising performed particularly well," ONS Director of Economic Statistics Liz McKeown said.ONS data showed that quarterly output in the services sector was up 0.8%, with 11 of the 14 subsectors contributing positively to growth. The production sector grew by 0.2%, primarily due to a 0.6% increase in electricity, gas, steam and air conditioning supply and a 0.8% gain in manufacturing. Meanwhile, construction output ticked up by 0.4%, supported by an increase in repair and maintenance, namely within private housing.In March 2026 alone, the UK's GDP rose 0.3% month over month, against the downwardly revised 0.4% growth a month before and the expected 0.1% decline, according to Investing.com data."Ever since 2022, the UK economy has grown much faster in the first quarter than in the rest of the year. And 2026 looks like it'll be no different," ING said in a note. "That brings us to the key point, which is that the direction of the UK economy this summer has clearly changed for the worse over the past few weeks. Admittedly, a strong GDP reading for March sets a decent base for the second quarter; growth is likely to come in around 0.2-0.3%, before likely turning negative in the third quarter."ING added that the data "won't change much" for the Bank of England, saying the central bank remains focused on the "impending inflation spike and the risk of it spilling into wage growth." ING expects a "one-and-done" rate increase in June.

$^FTSE
Suzuki Motor Posts Record Profit in Fiscal 2025 Despite Rising Costs
US Markets

Suzuki Motor Posts Record Profit in Fiscal 2025 Despite Rising Costs

Suzuki Motor's (TYO:7269) fiscal 2025 attributable profit grew to a record high despite booking lower operating profit amid rising raw material costs, as well as human resources and technological investments.The Japanese vehicle manufacturer logged an attributable profit of 439.3 billion yen, up 5.6% from 416.1 billion yen in fiscal 2024. The figure jumped for the sixth consecutive period, the company said.Diluted earnings per share grew to 227.66 yen from 215.65 yen.Suzuki Motor's revenue increased 8% to 6.293 trillion yen from 5.825 trillion yen a year earlier.Market conditions in India influenced the topline after the country revised its goods and services tax, driving the company to adjust production and logistics in the country to cope with demand.Revenue in the automobile segment jumped 7.6% year over year to 5.706 trillion yen, but its operating profit slipped 3.5% to 547.6 billion yen.Its motorcycle segment grew 14% to 454.5 billion yen, while operating profit increased 9.7% to 44.8 billion yen on strong sales in India and Colombia.Suzuki Motor's marine business grew its revenue by 8.9% to 119.5 billion yen, but its operating profit slid 13% to 26.6 billion yen due to U.S. tariff impacts.Global automobile sales volume jumped 2.4% to 3.3 million units, with stronger sales in India, Pakistan, and Africa, while its motorcycle sales widened by 9.5% to 2.3 million units, thanks to stronger performance in India and Latin America.Operating profit slid 3.1% year over year to 622.9 billion yen from 642.9 billion yen on investments in human resources and technology.For fiscal 2027, the company expects attributable profit to fall 14% to 380 billion yen or 196.67 yen per share, as it expects the war in the Middle East to bear "significant risk" on its production.Revenue is predicted to grow 8.1% to 6.800 trillion yen, but operating profit could slide 8.5% to 570 billion yen.The company plans to pay a year-end dividend of 24 yen per share, with the total dividend for fiscal 2025 reaching 46 yen.For fiscal 2026, Suzuki Motor plans to pay a dividend of 51 yen per share.

$TYO:7269
Eneos to Acquire Chevron's Asia-Pacific Assets for $2.17 Billion
US Markets

Eneos to Acquire Chevron's Asia-Pacific Assets for $2.17 Billion

Japanese refiner Eneos Holdings (TYO:5020) agreed to acquire Chevron's downstream fuels and lubricants businesses across six Asia-Pacific markets for $2.17 billion, marking one of its largest overseas expansion moves in recent years.The company said it signed share purchase agreements to buy Chevron's operations in Singapore, Malaysia, the Philippines, Australia, Vietnam and Indonesia, including a 50% non-operated stake in Singapore Refining Company. The transaction is expected to close in 2027, subject to regulatory approvals.Under the deal, Eneos will acquire the businesses through a Singapore-based special purpose vehicle. The assets include the Caltex fuels and lubricants brand network across the region, which Chevron has operated for decades."This investment represents a significant step in strengthening the business platform that connects Japan with Southeast Asia and Oceania, while bringing together the competitive strengths developed across each market to advance our Group's growth to the next stage," Eneos CEO Tomohide Miyata said in a statement.The move comes as energy companies accelerate overseas expansion to offset a shrinking domestic market and secure supply chains across the Asia-Pacific. In February, Thailand's Bangchak Corp. agreed to acquire Chevron's Hong Kong fuel business for $270 million as part of its regional expansion strategy.Eneos has also been navigating heightened geopolitical risks tied to Middle East crude supplies. Reuters reported earlier that an Eneos-managed tanker carrying Kuwaiti and UAE crude recently passed through the Strait of Hormuz after disruptions linked to the U.S.-Israel conflict with Iran.Japan relies heavily on Middle Eastern crude imports, and refiners, including ENEOS, have sought alternative supply sources while the government works to stabilize domestic fuel markets through subsidies and diplomatic efforts. The Chevron deal underscores Eneos' push to build a broader overseas earnings base and deepen its presence in faster-growing fuel markets.Eneos' shares fell nearly 3% in recent trade in Tokyo.

$TYO:5020