Honda Q2 profit falls 39% as EV costs reach ¥484.8 Billion

Honda Motor (NYSE:HMC) reported second-quarter fiscal 2027 operating profit of ¥117.9 billion, down 39% year-over-year, as electric-vehicle restructuring costs affected its results.

Quarterly revenue increased 12.9% to ¥5.98 trillion, but operating profit missed the analyst median estimate of ¥250 billion, while quarterly profit attributable to parent-company shareholders was approximately ¥65.8 billion.

For the six months ended September 30, Honda recorded revenue growth of 13.2% to ¥12.04 trillion and net profit growth of 65.7% to ¥516.76 billion, supported by motorcycle sales in India and Brazil and demand for hybrid vehicles in North America.

The second-quarter results included ¥484.8 billion in electric-vehicle restructuring charges, while adjusted operating profit excluding those costs reached ¥602.8 billion, compared with ¥295.7 billion a year earlier.

Honda is shifting more investment toward hybrid vehicles, supported by a planned US$3 billion automobile plant in Ohio that is designed to produce up to 240,000 hybrid vehicles annually when production begins in 2029.

The company raised its fiscal 2027 operating profit forecast to ¥780 billion from ¥650 billion, net profit guidance to ¥500 billion from ¥400 billion and revenue expectations to ¥24.4 trillion from ¥24.15 trillion.