Honda Motor has reported a 6.9% decrease in profit for the first nine months of fiscal year 2025, with earnings reaching Y860.42bn ($5.63bn). The auto giant’s profit attributable to owners of the parent fell by 7.4% to Y805.26bn. Despite this decline in profit, Honda’s consolidated sales revenue grew by 8.9% to Y16.32tn, and operating profit increased by 5.9% to Y1.13tn for the period ended 31 December 2024.
However, the company faced a 3.1% decrease in profit before income taxes, which stood at Y1.22tn. Comprehensive income also experienced a decline of 21.1%, reaching Y1.07tn. Honda’s nine-month performance saw automobile sales drop by 297,000 units, primarily due to declines in Asia, especially China, despite strong North American sales.
For the fiscal year ending 31 March 2025, Honda projects a 5.7% increase in sales revenue to Y21.6tn and a 2.8% rise in operating profit to Y1.42tn. However, the forecast indicates a 10.8% decline in profit before income taxes to Y1.46tn, with an anticipated 13.7% drop in profit for the year to Y1.02tn. Profit attributable to owners of the parent is expected to fall by 14.2% to Y950bn, with earnings per share estimated at Y203.03.
Despite the revenue growth, Honda anticipates a downturn in overall profitability, with automobile unit sales revised downward to 3.75 million units, mainly due to decreased sales in Japan. Earlier this week, Honda and Nissan decided to terminate the memorandum of understanding (MoU) signed in December last year regarding a potential business integration. During discussions, Honda proposed altering the integration structure from a joint holding company to a parent-subsidiary model, with Honda as the parent. Both companies concluded that ceasing discussions and terminating the MoU would be best to prioritize decision-making speed and management execution in the evolving market environment.
