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 affect of U.S. tariffs.
Listed here 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 yr ended March, income got here in at 21.69 trillion yen, in comparison with the common estimate of 21.63 trillion yen from LSEG and marking a 6.2% rise yr on yr.
Working revenue fell 12.2% to 1.21 trillion yen, in opposition to the common LSEG estimate of 1.41 trillion yen.
Web revenue for its full yr fell 24.5% to 835.84 billion.
Whereas its bike enterprise achieved a document excessive gross sales quantity and working revenue, Honda’s car enterprise noticed a drop in gross sales, primarily in China and Southeast Asia.
Hybrid electrical automobile gross sales in North America, nevertheless, expanded because of increased EV incentives within the area.
Honda’s outcomes come amid commerce tensions with the U.S., which has slapped a 25% tariff on overseas car 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 response to 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 yr 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 an excellent 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 affect of tariff insurance policies worldwide can be very vital on its enterprise, with the frequent revisions making it troublesome to formulate an outlook.
“Moving forward, we will carefully assess the impact of tariff policies and expand recovery measures while aiming for further growth in operating profit,” the corporate mentioned in its presentation.
Honda additionally modified its dividend coverage from a dividend payout ratio to a “dividend on equity,” forecasting a rise of two yen per share to 70 yen per share for its present fiscal yr.
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 practically 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 yr earlier than.
For the total yr, working revenue plummeted by nearly 88% yr on yr 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 yr got here in practically flat.
Nissan additionally introduced a plan to save lots of 500 billion yen over the following few years. Among the many measures undertaken can be a headcount discount of 20,000 employees and consolidating its manufacturing crops to 10 from 17 by March 2028.
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