Honda Motor Co., Ltd. reported its consolidated financial results for the nine months ended December 31, 2025, showing a decline in revenue and profits as the company faced foreign exchange headwinds, changing electric vehicle (EV) market conditions, and tariff impacts.
For the nine-month period, Honda recorded sales revenue of ¥15.98 trillion, down 2.2% year-on-year, while operating profit declined 48.1% to ¥591.5 billion. Profit before income taxes fell 37% to ¥771.8 billion, and profit attributable to owners of the parent decreased 42.2% to ¥465.4 billion. Earnings per share dropped to ¥115.53, compared with ¥169.69 a year earlier.
Financial Position and Dividends
As of December 31, 2025, Honda’s total assets increased to ¥32.85 trillion, while total equity stood at ¥12.78 trillion, with an equity ratio of 37.9%. Honda maintained its dividend outlook, forecasting ¥70 per share annual dividends for fiscal year 2026.
Revised Full-Year Outlook
Honda revised its fiscal year 2025 outlook, projecting full-year sales revenue of ¥21.1 trillion, down 2.7%, and operating profit of ¥550 billion, a 54.7% decline year-on-year. The company expects profit attributable to owners of the parent to fall 64.1% to ¥300 billion, with earnings per share forecast at ¥75.05.
Segment Performance
Motorcycle business revenue increased to ¥2.93 trillion, while the automobile business declined to ¥10.22 trillion, reflecting EV-related market pressures. Financial services revenue totaled ¥2.56 trillion during the period.
EV Market Impact and Restructuring Charges
Honda highlighted major impacts from the slowdown in EV demand in North America and Europe, intensified competition in Asia, and policy shifts including tariff changes and reduced tax incentives. The company lowered its 2030 global EV sales ratio target to 20% from 30%, cancelled certain EV model development projects, and recorded significant charges related to discontinued programs and alliance agreements.
Capital Structure and Share Cancellation
Honda’s board approved the cancellation of 747 million treasury shares (14.1% of issued shares), scheduled for February 27, 2026, to improve capital efficiency.
Forward Outlook
Honda said forward-looking statements remain subject to macroeconomic, currency, regulatory, and market uncertainties, noting that actual results may differ materially from forecasts.
