Honda Motor's operating profit surged 117.4% year-on-year to Y530.76bn ($3.36bn) in the fiscal first quarter, as prior-year electric vehicle (EV)-related losses were absent this year.
Sales revenue for the three-month period ended 30 June 2026 climbed 13.5% to Y6.06tn.
Profit before income taxes grew 107% to Y605.02bn and profit attributable to owners of the parent increased 129.3% to Y450.91bn.
Earnings per share rose to Y115.84, compared with Y46.80 in the same quarter last year.
The prior-year quarter had included Y122bn in EV-related losses, none of which were recorded in the latest quarter.
The automobile segment posted an operating profit of Y192.12bn, with an operating margin of 5%, reversing a Y29.63bn loss recorded in the same period a year earlier.
The company attributed this to higher sales volumes, particularly in North America, alongside weaker performance in China.
Honda raised its operating profit forecast for the fiscal year ending 31 March 2027 to Y650bn, up from a previous estimate of Y500bn, marking an upward revision of Y150bn.
The company said the change stemmed solely from a revised exchange rate assumption, now set at Y155 per US dollar, 10 yen weaker than the earlier assumption.
Adjusted operating profit forecast was lifted to Y1.17tn from Y1tn.
Honda also raised its estimate for losses linked to the review of its automobile electrification strategy, to Y520bn from Y500bn, again citing the revised exchange rate assumption.
Full-year sales revenue is now projected at Y24.15tn, up 10.8% year-on-year and Y1tn higher than the previous forecast.
Profit for the year attributable to owners of the parent is forecast at Y400bn, compared with a loss of Y423.9bn in the prior fiscal year.
Honda said the uncertainty surrounding the situation in the Middle East made it necessary to carefully assess risks related to sales volume, material costs and other factors, adding that only exchange rate assumptions had been revised from the forecast issued on 14 May.
The company left its full-year dividend forecast unchanged at Y70 per share, comprising an interim dividend of Y35 and a year-end dividend of Y35.
Separately, Honda disclosed the operating status of production sites affected by the 2026 Kumamoto earthquake, as of 5 August 2026.
The Saitama automobile factory faces production suspensions from 5-7 August and 17-19 August, totalling six days, while the Suzuka automobile factory faces suspensions from 6-7 August and 17-19 August, totalling five days.
Honda noted that it had originally not planned operations from 8-16 August owing to the summer holiday period and said it would continue to monitor developments and determine further actions.
