Honda's first-half 2025 profit falls 41% amid EV strategy shift

For the six months ended September 30, 2025, Honda reported sales revenue of JPY 10,632,680 million, a 1.5% decrease from the previous year. Operating profit fell 41.0% to JPY 438,144 million, with profit attributable to owners of the parent at JPY 311,829 million, down 37.0%. Basic and diluted earnings per share were JPY 76.30.

The company adjusted its 2030 global EV sales ratio target from 30% to 20% due to a slowdown in the EV market in North America and Europe, coupled with policy shifts in the United States affecting tax incentives and emissions regulations. This led to JPY 139,888 million in cost of sales, JPY 8,130 million in selling, general and administrative expenses, and JPY 89,245 million in research and development expenses related to discontinued EV model development and reduced manufacturing under alliance agreements.

Honda's full-year forecast for fiscal year 2026 anticipates sales revenue of JPY 20,700,000 million, a 4.6% decrease, and a significant 54.7% drop in operating profit to JPY 550,000 million. Profit attributable to owners of the parent is projected to be JPY 300,000 million, a 64.1% decline, with basic earnings per share of JPY 75.05. The annual dividend forecast is JPY 70.00 per share.