Honda Motor Company reported a 66% surge in net profit to JPY 516.8 billion (US$3.25 billion) for the first half of fiscal year 2027, covering April to September 2026. The Japanese automaker also posted a 13.2% rise in consolidated revenues to JPY 12,037.6 billion (US$75.8 billion), according to its half-year results.

Operating profit rebounded 48% to JPY 648.7 billion (US$4.1 billion). The figures include EV-related losses of JPY 484.8 billion; excluding them, operating profit would have reached JPY 1,133.5 billion, up 71% year-on-year.

The results span Honda's vehicle, motorcycle, financial services and power products divisions. The company credited strong vehicle sales in North America, robust global motorcycle demand, and favorable foreign exchange fluctuations for the gains.

How did each division perform?

The automobile division generated consolidated revenues of JPY 7,683 billion, up almost 10% year-on-year. It nevertheless recorded an operating loss of JPY 5.7 billion because of EV-related losses. Excluding those charges, adjusted operating profit for the division stood at JPY 479.0 billion.

Global vehicle sales fell 6.6% to 1.569 million units. The regional breakdown was uneven:

• North America: sales up almost 5% to 897,000 units
• Japan: sales down slightly to 278,000 units
• Asia, excluding Japan: deliveries plunged 36% to 273,000 units

Motorcycles delivered the strongest performance. Global sales rose 11% to 11.9 million units, generating revenues of JPY 2,272.5 billion, an 18% increase.

The financial services division generated revenues of JPY 2,272.5 billion, up 21%. Power products moved in the opposite direction on volumes: sales declined 4% to 1.632 million units, though revenues rose 8% to JPY 209.1 billion.

What does Honda expect for the full year?

The automaker expects consolidated revenues to rise 12% to JPY 24.4 trillion for FY27, which ends in March 2027. It forecasts operating profit of JPY 780 billion, a sharp reversal from the loss of JPY 414.3 billion recorded in the previous fiscal year.

Honda anticipates a weaker vehicle market ahead. It projects global vehicle sales will decline 7% to 3,160,000 units over the full year, in line with the 6.6% drop recorded in the first half.

The results underline a two-speed business: motorcycles and North American vehicle demand are offsetting EV-related losses and a steep contraction in Asian deliveries. With JPY 484.8 billion in EV charges already absorbed in six months, the full-year operating forecast of JPY 780 billion implies management expects the second half to weigh on margins.