Honda raises outlook even as failed EV bet weighs on profit
The carmaker now expects an operating profit of ¥780 billion in the fiscal year ending March 2027, up from its previous guidance of ¥650 billion.
Honda has increased its annual profit forecast, driven by robust motorcycle sales and robust demand in North America, despite the negative impact of its premature venture into electric vehicles (EVs). The Japanese automaker has revised its outlook for the fiscal year concluding March 2027, projecting operating profit at ¥780 billion ($4.9 billion), an upward adjustment from the previously anticipated ¥650 billion. However, this revised estimate remains below the expectations set by analysts, who had forecast ¥839 billion.
The company's decision to exclude EV-related losses from its profit projection revealed a more favorable picture, with an estimated ¥1.3 trillion for the entire year. This figure comes from the report of Executive Vice President Noriya Kaihara, who highlighted the significant financial hit from the company's aggressive EV investments. The quarter ended on September 30 saw operating profit of ¥118 billion, dramatically underestimating the market's expectations of ¥265 billion.
Despite these challenges, Honda's strategic decision to focus on its core strengths – motorcycles and North American markets – appears to have offset the negative effects of its EV gambit, at least according to the company's optimistic financial outlook.
Written by urgent.news from Japan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
