Honda reports its first annual loss in 70 years due to $9B in EV restructuring expenses but forecasts a profit rebound this fiscal year.
Honda Motor (HMC) recorded a net loss for the fiscal year, its first in approximately 70 years, driven by over $9 billion in costs tied to revamping its electric vehicle operations. The automaker cited heavy investments in battery technology, supply chain adjustments, and production shifts as key factors behind the loss.
The loss contrasts with Honda’s consistent profitability since its public listing. Analysts had anticipated a decline but not a full-year loss, given the company’s historical resilience. The prior fiscal year saw a profit of $4.2 billion, underscoring the scale of the EV-related charges.
Honda expects to return to profitability in the current fiscal year, projecting improved margins as EV production scales and cost efficiencies materialize.