Japanese automaker Honda Motor Company reported a 1.2% drop in global revenues to JPY 5,340.3 billion in the first quarter of the current fiscal year (FY25), between April and June 2025. The company’s operating profit plunged by almost 50% to JPY 244.1 billion, while net profits were also down by 50% to JPY 197 billion, with the company blaming the impact of US import tariffs and one-off costs relating to its electric vehicle (EV) programme for the sharp declines.
Honda said it expects global revenues for the full fiscal year, ending in March 2026, to fall by 2.7% to JPY 21.1 billion, despite strong vehicle sales growth so far in North America and buoyant motorcycle demand in Vietnam and Brazil.
The automaker has revised upward its operating profit forecast for the full fiscal year, to JPY 700 billion from JPY 500 billion previously, in light of the recently negotiated US import tariffs, which were cut from 25% to 15% at the beginning of August. This is still down sharply from the JPY 1,213 billion operating profit in the previous fiscal year. The estimated impact of the US tariffs over the full fiscal year has been lowered to JPY 450 billion.
Honda has also changed its average US$ exchange rate assumption for the full year from JPY135 to JPY140, which improves the profitability of its US operations. Net profits for the full year are expected to drop by almost 50% to JPY 420 billion, up from its previous forecast of JPY250 billion.
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By GlobalData
