Automaker cites EV restructuring costs and weaker North American demand for its first annual loss since 1957.
Honda Motor expects an operating loss of $2.55bn for the fiscal year ending March 2026, its first since going public in 1957. The loss contrasts with a Y1.2tn profit in the prior year and falls within a previously guided range of Y270bn to Y570bn.
The decline stems from a strategic overhaul of its electrification plans, including the cancellation of three EV models. Restructuring costs could reach Y2.5tn over two years, covering impairment charges and supplier compensation.
Honda aims to return to profitability by March 2027, supported by motorcycle sales growth in Asia and a weaker yen.