Honda is seen on the New York Worldwide Auto Present on April 16, 2025.
Danielle DeVries | CNBC
Japanese auto large Honda missed fourth-quarter earnings estimates as working revenue plunged 76%, with the corporate bracing for the total impression of U.S. tariffs.
Listed below are Honda’s outcomes in contrast with imply estimates from LSEG:
- Income: 5.36 trillion yen ($47.26 billion) vs. 5.36 trillion yen
- Working revenue: 73.5 billion yen vs. 275.52 billion yen
Honda’s fourth quarter ends March 31.
For its monetary 12 months ended March, income got here in at 21.69 trillion yen, in comparison with the typical estimate of 21.63 trillion yen from LSEG and marking a 6.2% rise 12 months on 12 months.
Working revenue fell 12.2% to 1.21 trillion yen, towards the typical LSEG estimate of 1.41 trillion yen.
Web revenue for its full 12 months fell 24.5% to 835.84 billion.
Whereas its motorbike enterprise achieved a document excessive gross sales quantity and working revenue, Honda’s vehicle enterprise noticed a drop in gross sales, primarily in China and Southeast Asia.
Hybrid electrical car gross sales in North America, nonetheless, expanded as a result of larger EV incentives within the area.
Honda’s outcomes come amid commerce tensions with the U.S., which has slapped a 25% tariff on overseas vehicle imports.
In March, Honda had reportedly determined to provide its next-generation Civic hybrid within the U.S. state of Indiana, as an alternative of Mexico, to keep away from potential tariffs on one in every of its top-selling automotive fashions, Reuters reported.
In line with U.S. automotive market Carpro, Asian automakers made up six of the highest eight automakers within the U.S. by gross sales quantity in 2024, with Honda in fourth place.
In its earnings launch, Honda had downgraded nearly each monetary metric for its present fiscal 12 months ending in March 2026, in contrast with its newest full-year outcomes. Its full-year working revenue is projected to fall nearly 59% to 500 billion yen.
Honda’s projected web revenue noticed a fair deeper lower at 70.1% decrease, plunging to 250 billion yen, whereas income is anticipated to fall 6.4% to twenty.3 trillion yen.
Japan’s second-biggest automaker defined that the impression of tariff insurance policies worldwide could be very vital on its enterprise, with the frequent revisions making it troublesome to formulate an outlook.
“Shifting ahead, we are going to fastidiously assess the impression of tariff insurance policies and increase restoration measures whereas aiming for additional progress in working revenue,” the corporate mentioned in its presentation.
Honda additionally modified its dividend coverage from a dividend payout ratio to a “dividend on fairness,” forecasting a rise of two yen per share to 70 yen per share for its present fiscal 12 months.
Again in February, Honda and rival Nissan terminated talks over a $60 billion merger, which might have created the world’s third-largest automaker by gross sales quantity.
Nissan earnings
Nissan additionally reported its fourth-quarter outcomes, with working revenue plunging by almost 94% to five.8 billion yen, whereas income remained flat.
The corporate swung to a web lack of 676 billion yen ($4.5 billion) within the fourth quarter, in comparison with a 101.3 billion revenue in the identical interval the 12 months earlier than.
For the total 12 months, working revenue plummeted by nearly 88% 12 months on 12 months to 69.8 billion yen, with the corporate attributing it to a lower in gross sales quantity, a rise in gross sales incentives, and inflation. Income for the total 12 months got here in almost flat.
Nissan additionally introduced a plan to avoid wasting 500 billion yen over the subsequent few years. Among the many measures undertaken could be a headcount discount of 20,000 staff and consolidating its manufacturing crops to 10 from 17 by March 2028.
