Honda Swings to Strong Q1 Profit, Lifts Full-Year Outlook on Weaker Yen

summarizeSummary

Honda's Q1 FY2027 operating profit surged 117% to JPY 530.7 billion, and the company raised its full-year profit forecast by 54% to JPY 400 billion, driven by a weaker yen and recovering auto demand.

check_boxKey Events · Earnings and Guidance · HMC

• Q1 Profit Rebounds Sharply

  Operating profit reached JPY 530.7 billion, up 117.4% year-on-year, as the prior year's EV-related losses and tariff impacts faded. Net profit attributable to owners rose 129.3% to JPY 450.9 billion.

• Full-Year Guidance Raised Significantly

  Honda lifted its FY2027 operating profit forecast by 30% to JPY 650 billion and net profit forecast by 53.8% to JPY 400 billion, citing a weaker yen (assumed rate now JPY 155/USD vs. prior JPY 145) and improved market conditions.

• Automobile Segment Turns Profitable

  The automobile business swung to a segment profit of JPY 192.1 billion from a loss of JPY 29.6 billion a year ago, reflecting recovery from last year's EV strategy reassessment and write-downs.

• Revenue Growth Across All Segments

  Consolidated sales revenue grew 13.5% to JPY 6,061.5 billion, with motorcycle revenue up 19.9%, automobile up 9.6%, and financial services up 23.4%.

auto_awesomeAnalysis · HMC · Manufacturing

A dramatic turnaround marked Honda's fiscal first quarter, with operating profit more than doubling to JPY 530.7 billion after last year's EV-related losses. The company also raised its full-year profit forecast by over 50%, citing a weaker yen and improved market conditions. This sharp recovery from the massive write-downs and operating loss that battered the stock just months ago signals that the worst of the EV restructuring may be behind it.