Honda Motor . Stock Earnings Reports

Honda reported Q1 FY2025 operating profit of JPY 244.1 billion, down JPY 240.5 billion year‑on‑year, driven mainly by EV‑related one‑time charges, tariff impacts and adverse currency effects, offset partially by higher motorcycle profitability and strong North American auto sales. Management raised the full‑year operating profit forecast to JPY 700.0 billion (up JPY 200 billion) and net profit to JPY 420.0 billion (up JPY 170 billion), reflecting a revised tariff assessment (gross impact reduced to ~JPY 450–400 billion) and a changed USD/JPY exchange‑rate assumption to JPY 140. Motorcycle operations delivered record quarterly operating profit (JPY 189 billion) with strong performance in Brazil and Vietnam; automobile operations recorded an operating loss (JPY 29.6 billion) in the quarter largely from one‑time EV charges and tariff effects, though underlying auto profitability (excluding one‑offs and tariffs) would have been positive. Cash and liquidity remain strong (net cash ~JPY 2.91 trillion) and share buybacks are largely complete (JPY 936.5 billion repurchased of a JPY 1.1 trillion program). Management reiterated a “produce where demand is” manufacturing stance in the U.S., is reassessing localization of hybrid EV components, and continues to work through tariff allocations and supplier impacts, with full details and assumptions provided in the presentation appendices.