Japan’s Honda (HMC) posted its first-ever loss in its nearly 80-year history, following a strategy shift from EVs, which cost it dearly.
But a refocused plan to lean into hybrids and upbeat guidance for the year ahead have investors bullish
Honda said total EV-related losses for the fiscal year ended March 2026 came in 1.579 trillion yen ($10 billion), leading to an operating profit loss of 414.3 billion yen ($2.625 billion). “Although the automobile business faced a harsh business environment – including higher tariff burdens and lower unit sales due to factors such as semiconductor supply shortages — we implemented company-wide cost reductions as one team, and excluding EV-related losses, we were profitable,” the company said in its presentation. Good news came with Honda’s guidance, however. Though EV-related losses in upcoming March 2027 FY will be 500 billion yen ($3.168 billion), the company still sees operating profit at 500 billion yen.
This topped Bloomberg consensus estimates of 212.4 billion yen ($1.35 billion), sending Honda’s ADR shares listed in New York up over 2%. In order to better serve North America and its top market the US, Honda said it plans to roll out 15 new hybrid models by March 2030, primarily in North America, dropping planned EVs and toward mixed powertrain vehicles. Honda said by 2029 it would launch “large size hybrid models,” in the D-segment, meaning full-size sedans, wagons and SUVs.