Research Alert: Honda Reports Substantial Ev-related Losses For Fy 26 Amid Strategy Shift
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:Honda reported a consolidated operating loss of JPY414.3B for FY 26 (Mar.), down sharply from the prior year's profit of JPY1,213.5B, primarily due to EV-related losses totaling JPY1,577.8B from strategy reassessment and asset impairments. Revenue edged up 0.5% to JPY21,796.6B, supported by higher motorcycle sales in Asia and South America that offset automobile declines from semiconductor shortages and tariff impacts. Excluding one-time EV charges, adjusted operating profit of JPY1,039.3B demonstrated underlying operational strength, with the motorcycle business achieving record sales volume and operating profit of JPY731.9B. For FY 27, management forecasts operating profit of JPY500.0B and expects the company to bottom out in FY 26-FY 27 before beginning recovery. Honda maintained its JPY70 dividend and robust cash position of JPY5,118.4B, while planning motorcycle capacity expansion in India targeting record 22.8M unit sales and shifting automobile focus toward hybrid vehicles in North America.