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 influence 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 12 months 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 12 months on 12 months.
Working revenue fell 12.2% to 1.21 trillion yen, in opposition to the common LSEG estimate of 1.41 trillion yen.
Internet revenue for its full 12 months fell 24.5% to 835.84 billion.
Honda’s outcomes come amid commerce tensions with the U.S., which has slapped a 25% tariff on international vehicle imports.
In March, Honda had reportedly determined to supply 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 among its top-selling automobile fashions, Reuters reported.
Based on U.S. automobile 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 12 months 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 internet revenue noticed a fair deeper lower at 70.1% decrease, plunging to 250 billion yen, whereas income is predicted to fall 6.4% to twenty.3 trillion yen.
Japan’s second-biggest automaker defined that the influence of tariff insurance policies worldwide could be very vital on its enterprise, with the frequent revisions making it troublesome to formulate an outlook.
“Transferring ahead, we are going to rigorously assess the influence of tariff insurance policies and increase restoration measures whereas aiming for additional development in working revenue,” the corporate mentioned in its presentation.
Honda additionally modified its dividend coverage from a dividend payout ratio to a “dividend on fairness,” forecasting a rise of two yen per share to 70 yen per share for its present fiscal 12 months.
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.
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