Japanese automaker Honda Motor Company reported a 2.2% drop in global revenues to JPY 21,796.6 billion ((US$ 138 billion) in the last fiscal year (FY25), which ended in March 2026. The company incurred an operating loss of JPY 414.3 billion, compared with an operating profit of JPY 1,213.4 billion in the previous fiscal year, resulting in a net loss of JPY 423.9 billion following a net profit of JPY 835.8 billion previously.

The company blamed its first operating loss in almost 70 years on huge accounting charges and restructuring costs associated with the overhaul of its battery electric vehicle (BEV) strategy in the US, where it cancelled several new models scheduled to go into production in the country by the end of the decade, due to weakening demand following policy changes by the Trump administration.

The automaker said its global vehicle sales fell by 8.9% to 3.387 million units in the last fiscal year, with sales in North America falling by 3% to 1.605 million units, while sales in Asia (excluding Japan) plunged by over 21% to 929,000 units, and sales in Japan were down by 4% to 605,000 units.

Honda said it expects to make an operating profit of JPY 500 billion in the current fiscal year (FY26), ending in March 2027, including additional charges of JPY 500 billion relating to the continued overhaul of its BEV strategy.