Honda Motor Expected to Post Lower First-Quarter Net Profit -- Earnings Preview

Dow Jones
Aug 05
 

By Kosaku Narioka

 

Honda Motor is scheduled to report first-quarter results on Wednesday. Here is what you need to know:

 

NET PROFIT: Honda Motor's net profit is expected to have fallen 37% to 248.17 billion yen, equivalent to $1.69 billion, for the three months ended June, according to a poll of analysts by LSEG. That would compare with Y394.66 billion in the year-earlier period.

REVENUE: First-quarter revenue is estimated to have declined 2.9% to Y5.250 trillion, according to LSEG.

The stock has risen 0.9% so far this year through Monday, following a 4.7% gain in 2024.

 

WHAT TO WATCH:

--For the year that began in April, Honda has projected revenue to decline 6.4% to Y20.300 trillion and net profit to drop 70% to Y250 billion. The automaker said in May that it expected U.S. tariffs to reduce operating profit by Y650 billion this fiscal year. Investors will be focusing on any changes to the annual guidance as well as management's views on the impact of U.S. tariffs on its operations.

--The company's operating profit margin deteriorated to 5.6% for the year ended March from 6.8% the previous fiscal year. Investors will be closely watching any signs of improvement in margins, as automakers globally are dealing with relatively high inflation.

--Operating profit for its motorcycle business increased 19% to Y663.44 billion for the year ended March, driven by strong sales in Asia outside Japan. Investors will be paying attention to the performance of the key profit-making segment.

 

Write to Kosaku Narioka at kosaku.narioka@wsj.com

 

(END) Dow Jones Newswires

August 04, 2025 23:33 ET (03:33 GMT)

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