Honda Slashes Profit Outlook as Nine-Month Earnings Slide, Keeps Dividend Plan Intact

Honda Motor Co ( (JP:7267) ) has issued an announcement.

Honda reported consolidated results for the nine months to December 31, 2025 showing sales revenue of ¥15.98 trillion, down 2.2% year on year, with operating profit falling 48.1% to ¥591.5 billion and profit attributable to owners dropping 42.2%, reflecting a sharp deterioration in profitability despite slightly higher comprehensive income. Equity attributable to owners stood at ¥12.47 trillion with an equity ratio of 37.9%, while the company maintained its annual dividend plan at ¥70 per share and cut its full-year earnings forecast, projecting a 2.7% decline in sales and a more than 60% slump in profit, signaling pressure on margins and a more challenging outlook for shareholders and creditors.

The number of treasury shares rose significantly to about 1.39 billion, reducing the average shares outstanding and supporting per-share metrics despite weaker absolute earnings, but basic earnings per share still fell to ¥115.53 for the period. Honda’s revised full-year guidance of ¥550 billion in operating profit and ¥300 billion in profit attributable to owners, both down sharply from the prior year, underlines a tougher operating environment that may weigh on its competitive positioning and capital allocation flexibility even as it keeps dividend payouts stable.

The most recent analyst rating on (JP:7267) stock is a Hold with a Yen1600.00 price target. To see the full list of analyst forecasts on Honda Motor Co stock, see the JP:7267 Stock Forecast page.

More about Honda Motor Co

Honda Motor Co., Ltd. is a Japan-based global manufacturer primarily engaged in automobiles, motorcycles and power products. Listed on the Tokyo Stock Exchange, the company operates across international markets, with a large shareholder base and significant treasury stock, and reports its results under International Financial Reporting Standards.

Average Trading Volume: 14,242,189

Technical Sentiment Signal: Strong Buy

Current Market Cap: Yen6912.5B

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