Japan’s Honda (HMC) posted its first-ever loss in its almost 80-year historical past, following a technique shift from EVs, which value it dearly. However a refocused plan to lean into hybrids and upbeat steerage for the 12 months forward have buyers bullish.
Honda mentioned whole EV-related losses for the fiscal 12 months ended March 2026 got here in 1.579 trillion yen ($10 billion), resulting in an working revenue lack of 414.3 billion yen ($2.625 billion).
“Though the auto enterprise confronted a harsh enterprise setting – together with larger tariff burdens and decrease unit gross sales attributable to components reminiscent of semiconductor provide shortages — we applied company-wide value reductions as one workforce, and excluding EV-related losses, we have been worthwhile,” the corporate mentioned in its presentation.
Excellent news got here with Honda’s steerage, nonetheless. Although EV-related losses in upcoming March 2027 FY might be 500 billion yen ($3.168 billion), the corporate nonetheless sees working revenue 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%.
With the intention to higher serve North America and its high market the US, Honda mentioned it plans to roll out 15 new hybrid fashions by March 2030, primarily in North America, dropping deliberate EVs and towards blended powertrain autos. Honda mentioned by 2029 it might launch “massive dimension hybrid fashions,” within the D-segment, that means full-size sedans, wagons and SUVs.
Honda additionally mentioned on Thursday that it might drop plans to construct out an EV battery provide chain in Canada.
At present Honda has 5 autos in its US lineup that supply hybrid powertrains, nonetheless these are of the gentle hybrid selection, not plug-ins, which provide extra vary and effectivity. Honda’s lone EV is the Prologue, which is basically a re-badged Chevrolet Blazer EV, which has bought at deep reductions at dealerships and can finish manufacturing in December of this 12 months.
Not surprisingly, Honda is scrapping its objective of being combustion free by 2040, with a brand new long-term objective of “carbon neutrality” by 2050, which is able to embody a mixture of EVs, hybrids, and carbon offsets. This implies the corporate will nonetheless put money into next-gen EV {hardware} and platforms for the longer term, however the cmopany didn’t reveal these actual outlays.
Tariff impacts are nonetheless a headwind, with Honda manufacturing in areas like Canada, Mexico, and Japan in addition to its major plant in Marysville, OH. Honda mentioned tariff bills for the final fiscal 12 months got here in at 346.9 billion yen ($2.2 billion).
Pras Subramanian is Lead Auto Reporter for Yahoo Finance. You’ll be able to comply with him on X and on Instagram.
