Due to the review of the four-wheel electrification strategy, a loss of operating expenses between 820 billion yen and 1.12 trillion yen is anticipated for the fiscal year ending March 2026, resulting in a significant downward revision of the full-year consolidated earnings 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Ltd.","jir_importance":"\u2605\u2605\u2605\u2605\u2605","jir_publication_date":"2026-03-12","jir_source_link":"https:\/\/japanir.jp\/wp-content\/uploads\/2026\/03\/7267-20260312-01.pdf","jir_short_summary":"Due to the review of the four-wheel electrification strategy, a loss of operating expenses between 820 billion yen and 1.12 trillion yen is anticipated for the fiscal year ending March 2026, resulting in a significant downward revision of the full-year consolidated earnings guidance.","jir_summary":"### Background of Review of Four-Wheel Electrification Strategy and Occurrence of Losses\nHonda Motor Co., Ltd. has been promoting electrification towards achieving carbon neutrality by 2050; however, due to a slowdown in the North American EV market, changes in US tariff policies, and intensified competition in Asia, the profitability of the four-wheel business has deteriorated. In response, the planned launch and development of certain EV models previously scheduled for production in North America have been cancelled. This will result in the recognition of losses from disposals and impairments of related tangible and intangible fixed assets, as well as additional expenses. Furthermore, impairment losses are expected on equity-method investments in China. Together, these factors are projected to cause operating expense losses of between 820 billion yen and 1.12 trillion yen, and investment losses of 110 billion yen to 150 billion yen in the consolidated earnings for the fiscal year ending March 2026.\n\n### Revision of Earnings Guidance and Future Business Policy\nIn light of these losses, the full-year consolidated earnings guidance for the fiscal year ending March 2026 has been significantly downgraded. While revenue is maintained at 21.1 trillion yen with no change from the previous forecast, operating income is expected to be a loss ranging from 570 billion yen to 270 billion yen, with net income potentially showing a maximum loss of 690 billion yen. Going forward, with a reduction in the EV lineup, Honda will strengthen hybrid electric vehicle (HEV) models to enhance competitiveness in Japan, the United States, India, and Asia. Stable shareholder returns will continue, supported by earnings from the motorcycle and financial services businesses. Additionally, voluntary executive salary reductions have been decided.","jir_financial_highlights":"Revenue: 21,100,000 million yen (No change from previous forecast)\nOperating Income: \u25b3570,000 to \u25b3270,000 million yen (Decrease of \u25b31,120,000 to \u25b3820,000 million yen from previous forecast)\nProfit before Tax: \u25b3650,000 to \u25b3310,000 million yen (Decrease of \u25b31,270,000 to \u25b3930,000 million yen from previous forecast)\nNet Income: \u25b3630,000 to \u25b3360,000 million yen (Decrease of \u25b3990,000 to \u25b3720,000 million yen from previous forecast)\nNet Income Attributable to Owners of Parent: \u25b3690,000 to \u25b3420,000 million yen (Decrease of \u25b3990,000 to \u25b3720,000 million yen from previous forecast)\nBasic Earnings per Share: \u25b3172.62 yen to \u25b3105.07 yen (Significant decrease from previous forecast)","jir_category":"","jir_hashtags":"#HondaMotorCoLtd, #EarningsGuidanceRevision, #ElectrificationStrategyReview, #JapaneseStocks","jir_key_figures":"Projected Operating Expense Loss: 820 billion yen to 1.12 trillion yen\nProjected Investment Loss under Equity Method: 110 billion yen to 150 billion yen\nFull-Year Consolidated Earnings Guidance Operating Income: \u25b3570,000 to \u25b3270,000 million yen","jir_meta_title":"Honda Motor Co., Ltd. to Record Up to 1.12 Trillion Yen Operating Loss Due to Review of Four-Wheel Electrification Strategy for Fiscal Year Ending March 2026","jir_meta_description":"Honda Motor Co., Ltd. significantly revises down full-year consolidated earnings guidance for fiscal year ending March 2026 following cancellation of North American EV model development. Operating loss expected up to 1.12 trillion yen with net loss forecast up to 690 billion yen.","jir_og_title":"Honda Motor Co., Ltd. Significantly Revises Earnings Guidance Due to Review of Four-Wheel Electrification Strategy","jir_og_description":"Anticipated operating loss up to 1.12 trillion yen for fiscal year ending March 2026 following cancellation of North American EV model development. Executive salary reductions also announced.","jir_og_image_url":"\/assets\/og\/company-general_ir.jpg","jir_chart_data_collection":"[]","ir_related_company":6850,"ir_release_date":"","ir_type":"","ir_is_new":false,"ir_document_url":"","jir_ir_type":"earnings_guidance","footnotes":""},"sector":[],"importance":[],"class_list":["post-34427","ir_release","type-ir_release","status-publish","hentry"],"yoast_head":"\n