HMC Q4 Earnings Miss, FY26 View Downbeat Amid Tariff Woes

Honda HMC reported earnings of 18 cents per share for fourth-quarter fiscal 2025, missing the Zacks Consensus Estimate of 72 cents. The bottom line also declined from the year-ago profit of 99 cents per share. Quarterly revenues totaled $35.1 billion, lagging the Zacks Consensus Estimate of $35.6 billion as well as the year-ago period figure of $36.5 billion.

HMC currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Honda Motor Co., Ltd. Price, Consensus and EPS Surprise

Honda Motor Co., Ltd. price-consensus-eps-surprise-chart | Honda Motor Co., Ltd. Quote

Segmental Highlights 

For the three-month period, which ended on March 31, 2025, revenues from the Automobile segment decreased 2.8% year over year to ¥3.57 trillion ($23.4 billion) but topped our projection of ¥3.4 trillion. The segment registered an operating loss of ¥158.7 billion ($1.04 billion) as against an operating income of $100.1 billion in the corresponding quarter of fiscal 2024. Our estimate was for an operating income of ¥94 billion.  

Revenues from the Motorcycle segment came in at around ¥919.6 billion ($6.12 billion), which increased 6.7% year over year and beat our estimate of ¥873 billion. The unit’s operating profit came in at ¥161.7 billion ($1.06 billion), up 11.8% year over year and higher than our forecast of ¥160.8 billion.

Revenues from the Financial Services segment totaled ¥849 billion ($5.56 billion), declining 1.7% year on year and lagging our prediction of ¥879 billion. The unit’s operating profit rose 2.2% year over year to ¥70.6 billion ($462 million) but fell short of our estimate of ¥75.2 billion.

Revenues from Power Product and Other Businesses came in at ¥113.2 billion ($742 million), down 2.2% year over year. However, revenues beat our forecast of ¥104.2 billion. The segment  achieved breakeven compared to a loss of ¥8.3 billion in the same period last year.

(Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)

Financials & FY26 View

Consolidated cash and cash equivalents were ¥4.53 trillion ($31.04 billion) as of March 31, 2025. Long-term debt was around ¥6.95 trillion ($47.67 billion) as of March 31, 2025, up from ¥6.06 trillion as of March 31, 2024.

Honda projects fiscal 2026 consolidated sales volumes from the Motorcycle, Automobile and Power Products segments to be 14.25 million units, 2.83 million units and 3.67 million units, respectively. The forecast implies growth of 4.1% year over year in Motorcycles unit. However, Automobile and Power Product Unit sales are likely to decline 0.3% and 0.8% year over year in fiscal 2025.

For fiscal 2026, Honda forecasts revenues of ¥20.3 trillion, implying a decline of 6.4% year over year. Operating profit is envisioned at ¥500 billion, indicating a contraction of 58.8% year over year. Pretax profit is forecast to be ¥490 billion, suggesting a drop of 62.8% year over year. The muted guidance comes amid macroeconomic and tariff-related challenges. The company will pay an interim and year-end dividend of ¥35/share each in fiscal 2026.

Key Auto Releases

General Motors GM reported first-quarter 2025 results on April 29. It posted adjusted earnings of $2.78 per share, which surpassed the Zacks Consensus Estimate of $2.69. The bottom line also increased from the year-ago quarter’s $2.62. Revenues of $44.02 billion beat the Zacks Consensus Estimate of $42.5 billion and increased from $43.01 billion recorded in the year-ago period.General Motors had cash and cash equivalents of $20.57 billion as of March 31, 2025. The long-term automotive debt at the end of the quarter was $13.44 billion.

Ford F reported first-quarter 2025 results on May 5. It posted adjusted earnings per share of 14 cents, which surpassed the Zacks Consensus Estimate of breakeven earnings but declined from 49 cents recorded in the year-ago quarter. The company’s consolidated first-quarter revenues came in at $40.66 billion, down 5% year over year. F’s total automotive revenues came in at $37.42 billion, topping the Zacks Consensus Estimate of $35.48 billion but decreasing from $39.89 billion generated a year ago. Ford had cash and cash equivalents of $20.9 billion as of March 31, 2025.

Toyota TM reported fiscal fourth-quarter 2025 results on May 8. It posted earnings per share of $3.39, which surpassed the Zacks Consensus Estimate of $2.92 but declined from the year-ago quarter’s earnings of $4.99. Consolidated revenues came in at $81.09 billion, which beat the consensus mark of $78.47 billion and also grew from $74.56 billion in the year-ago quarter. Toyota had cash and cash equivalents (non-financial services businesses) of ¥6.09 trillion ($41.75 billion) as of March 31, 2025. Long-term debt (non-financial services businesses) was ¥1.55 trillion ($10.6 billion), down from ¥1.93 trillion as of March 31, 2024.

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This article originally published on Zacks Investment Research (zacks.com).

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