Honda Motor (7267) Q1 2027 earnings summary

Executive summary

• Sales revenue for Q1 FY2026 rose 13.5% year-over-year to ¥6,061.5 billion, driven by growth in Financial services and Motorcycle businesses and favorable currency effects.

• Operating profit surged 117.4% year-over-year to ¥530.7 billion, reflecting the absence of prior-year EV-related losses and tariff impacts.

• Net profit attributable to owners increased 129.3% year-over-year to ¥450.9 billion.

• Record-high quarterly operating profit and margin in the motorcycle segment, driven by strong sales in India and Brazil.

• Comprehensive income for the period was ¥692.3 billion, a significant turnaround from a loss of ¥3.8 billion in the prior year.

Financial highlights

• Operating margin improved from 4.6% to 8.8% year-over-year.

• Earnings per share rose to ¥115.84 from ¥46.80 year-over-year.

• Cash and cash equivalents at period end increased to ¥5,348.1 billion.

• Free cash flow for non-financial services businesses was ¥294.0 billion.

• Total assets increased to ¥34,437.9 billion as of June 30, 2026.

Outlook and guidance

• FY2027 sales revenue forecast revised up to ¥24,150.0 billion (+10.8% YoY), with operating profit forecast at ¥650.0 billion.

• Adjusted operating profit forecast for FY2027 is ¥1,170.0 billion.

• Dividend per share forecast maintained at ¥70, targeting a DOE of 3.0%.

• Exchange rate assumption revised to 155 yen/USD.

• Earnings per share for the year is forecast at ¥102.75.