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Honda Slashes Annual Operating Profit Outlook to ¥550 Billion After Q2 Slide

U.S. tariffs plus Nexperia-linked chip shortages drove the downgrade.

Overview

  • Honda cut its operating profit forecast for the year through March 2026 by 21% to 550 billion yen.
  • Second-quarter operating profit fell 25% year on year to 194 billion yen, undershooting analyst expectations.
  • The company said U.S. import tariffs reduced operating profit by 164 billion yen over the first six months.
  • Chip supply disruptions tied to the Nexperia episode led to adjusted North American production and a halt at the Celaya, Mexico plant starting Oct. 28, though China has since allowed Nexperia exports to resume.
  • Currency movements shaved 116 billion yen from first-half operating profit, while record global motorcycle sales reached 10.7 million units, including more than 9 million in Asia.