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Honda HMC reported earnings of 18 cents per share for fourth-quarter fiscal 2025, missing the Zacks Consensus Estimate of 72 cents. The bottom line also declined from the year-ago profit of 99 cents per share. Quarterly revenues totaled $35.1 billion, lagging the Zacks Consensus Estimate of $35.6 billion as well as the year-ago period figure of $36.5 billion.
HMC currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Honda Motor Co., Ltd. Price, Consensus and EPS Surprise
Honda Motor Co., Ltd. price-consensus-eps-surprise-chart | Honda Motor Co., Ltd. Quote
Segmental Highlights
For the three-month period, which ended on March 31, 2025, revenues from the Automobile segment decreased 2.8% year over year to ¥3.57 trillion ($23.4 billion) but topped our projection of ¥3.4 trillion. The segment registered an operating loss of ¥158.7 billion ($1.04 billion) as against an operating income of $100.1 billion in the corresponding quarter of fiscal 2024. Our estimate was for an operating income of ¥94 billion.
Revenues from the Motorcycle segment came in at around ¥919.6 billion ($6.12 billion), which increased 6.7% year over year and beat our estimate of ¥873 billion. The unit’s operating profit came in at ¥161.7 billion ($1.06 billion), up 11.8% year over year and higher than our forecast of ¥160.8 billion.
Revenues from the Financial Services segment totaled ¥849 billion ($5.56 billion), declining 1.7% year on year and lagging our prediction of ¥879 billion. The unit’s operating profit rose 2.2% year over year to ¥70.6 billion ($462 million) but fell short of our estimate of ¥75.2 billion.
Revenues from Power Product and Other Businesses came in at ¥113.2 billion ($742 million), down 2.2% year over year. However, revenues beat our forecast of ¥104.2 billion. The segment achieved breakeven compared to a loss of ¥8.3 billion in the same period last year.
(Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)
Financials & FY26 View
Consolidated cash and cash equivalents were ¥4.53 trillion ($31.04 billion) as of March 31, 2025. Long-term debt was around ¥6.95 trillion ($47.67 billion) as of March 31, 2025, up from ¥6.06 trillion as of March 31, 2024.
Honda projects fiscal 2026 consolidated sales volumes from the Motorcycle, Automobile and Power Products segments to be 14.25 million units, 2.83 million units and 3.67 million units, respectively. The forecast implies growth of 4.1% year over year in Motorcycles unit. However, Automobile and Power Product Unit sales are likely to decline 0.3% and 0.8% year over year in fiscal 2025.