Japanese automaker Honda Motor Company reported a 2.2% drop in global revenues to JPY 15,975.6 billion (US$104.4 billion) in the first three quarters of the current fiscal year (FY26), between April and December 2025. The company’s operating profit plunged by 48% to JPY 591.5 billion (US$ 3.9 billion), while net profit dropped by 42% to JPY 465.4 billion (US$ 304.2 billion). The company blamed the impact of US import tariffs and one-off costs relating to its US battery electric vehicle (BEV) programme for the sharp declines.

The automaker said its global vehicle sales fell by 9.1% to 2.561 million units in the nine-month period, with sales in North America falling by 4.7% to 1.211 million units, while sales in Asia (excluding Japan) fell by 18.2% to 739,000 units, and sales in Japan were down by 6.3% to 439,000 units. Revenues from vehicle sales fell by 4.3% to JPY 10,435 billion, while the automotive division made an operating loss of JPY 166.4 billion compared with an operating profit of JPY 402.6 billion previously.

Global motorcycle sales rose by 6% to 16.44 million units, while sales of power products were down slightly at 2.5 million units. Combined with financial services, these divisions made an operating profit of JPY 758 billion, more than offsetting the loss made by the automotive division.

Honda left unchanged its global revenue forecast for the full fiscal year, ending in March 2026, at JPY 21.1 trillion, representing a 2.7% decline from the previous year, while cutting its operating profit forecast to JPY 550 billion from JPY 700 billion. The company also left unchanged its global vehicle sales forecast at 3.34 million units.

Honda said it will focus on increasing the profitability of its ICE and hybrid vehicle operations, as it looks to re-establish its mid- to long-term strategy, while cutting losses associated with its US battery BEV operations.