Honda Doubles Profit, Boosts Guidance on Weaker Yen

By Kosaku Narioka

Honda Motor reported sharply higher first-quarter net profit and raised its annual earnings forecasts thanks to a weaker yen.

The Japanese automaker said Wednesday that net profit more than doubled to 450.9 billion yen, equivalent to $2.86 billion, for the three months ended June. That beat the Y208.2 billion estimate in a poll of analysts by data provider Quick.

First-quarter revenue climbed 13.5% to Y6.062 trillion. Operating profit for its motorcycle business increased thanks to higher sales in India and Brazil. Operating results for its car business improved, driven by a weaker yen, which boosts the value of profits earned abroad in yen terms.

For the year ending March 2027, it projected an 11% increase in revenue to Y24.150 trillion and net profit of Y400.00 billion. The company previously expected revenue of Y23.150 trillion and net profit of Y260.00 billion.

That would mark a reversal from the net loss Honda Motor posted in its latest fiscal year, its first since listing in 1957, as it booked electric-vehicle losses equivalent to about $10 billion after giving up on its main EV plans in the U.S.

Honda plans to end production of the only EV it sells in the U.S., the Prologue SUV, this year.

Honda is aiming to improve its hybrid EV offerings to shore up its car business's profitability.

As part of efforts to bolster its car business in China, Honda in July extended its joint venture with Guangzhou Automobile Group through 2038. Honda's sales in China have fallen in recent years due to intense competition and a shift away from gas-fueled vehicles in the country.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

August 05, 2026 03:29 ET (07:29 GMT)