Honda reports 1H EPS Y76.30 vs. Y103.25 last year

Reports 1H revenue Y10.6T vs. Y10.8T last year, with operating profit of Y438.1B vs. Y742.6B last year. The company said, “Due to the slowdown in the expansion of the electric vehicle market in regions such as North America and Europe, Honda (HMC) has been experiencing impacts including lower EV sales units and higher sales incentives per unit than initially expected. Furthermore, following the United States government policy shifts, including the abolition of tax incentives for EV purchases and the easing of emissions regulations, as well as the imposition of import tariffs, the growth of the EV market in the United States is expected to slow down even further. Due to the recent EV market slowdown, the Honda global EV sales ratio in 2030 is now expected to be 20%, lower than the previously announced target of 30%. As part of the revision to the product launch plan to address the changes in the market condition, Honda decided to cancel a certain EV model development, and discontinue and reduce manufacturing of EV models jointly developed under a certain alliance agreement. As a result, for the six months ended September 30, 2025, the Company and its certain subsidiaries recognized losses and expenses of JPY 139,888 million in cost of sales, JPY 8,130 million in selling, general and administrative expenses, and JPY 89,245 million in research and development expenses in the condensed consolidated statements of income. These losses and expenses are included in Automobile business.”