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Honda lifts full-year operating profit forecast after first-quarter surge
The company raised its fiscal 2027 operating profit outlook to Y650bn, up from Y500bn previously, driven only by a revised exchange rate assumption of Y155 per US dollar.
Honda Motor reported a 117.4% year-on-year jump in operating profit to Y530.76bn ($3.36bn) for its fiscal first quarter, helped by the absence of prior-year EV-related losses. Sales revenue for the three months ended 30 June 2026 rose 13.5% to Y6.06tn, while profit before income taxes increased 107% to Y605.02bn. Earnings per share climbed to Y115.84 from Y46.80 in the same quarter a year earlier, according to Yahoo Finance.
Honda also posted higher profit attributable to owners of the parent, up 129.3% to Y450.91bn. The company said its automobile segment returned an operating profit of Y192.12bn with a 5% operating margin, reversing a Y29.63bn loss from the year-ago period, citing higher sales volumes, especially in North America, alongside weaker performance in China.
The company raised its operating profit forecast for the fiscal year ending 31 March 2027 to Y650bn, from a previous estimate of Y500bn. Honda said the upward revision stemmed solely from a change in its exchange rate assumption, now set at Y155 per US dollar, 10 yen weaker than the earlier assumption.
Honda maintained its full-year dividend forecast at Y70 per share, split into an interim dividend of Y35 and a year-end dividend of Y35. It also noted uncertainty tied to the Middle East in assessing risks to sales volume and material costs, and separately disclosed the operating status of production sites affected by the 2026 Kumamoto earthquake as of 5 August 2026.