Honda Performance in 2025: Financials, Sales, Top and Bottom Models, and Market Trends

Financial Performance and Profitability

• Fiscal Year 2025 Revenue: Approximately ¥21.7 trillion JPY (~$140 billion USD), a 6.2% increase year-over-year.

• Operating Profit (FY 2025): ¥1.21 trillion JPY (~$7.8 billion USD), down 12.2% from the previous year.

• Net Profit (FY 2025): ¥835.8 billion JPY (~$5.7 billion USD), a 24.5% decline year-over-year.

• Q2 2025 Sales Revenue: ¥5.34 trillion JPY (~$34 billion USD), slightly down from ¥5.40 trillion in prior year Q2.

• Q2 2025 Operating Profit: ¥244.17 billion JPY (~$1.56 billion USD), halved year-over-year due to tariff impacts and a stronger yen.

• Earnings Per Share (Q2 2025): 46.80 yen, down from 81.81 yen in prior year quarter.

• Operating Profit Outlook for FY 2026: The company projected a decrease in operating profit to around ¥500 billion JPY (~$3.4 billion USD), nearly a 59% fall, citing ongoing tariff uncertainties and cost pressures.

Vehicle Sales and Production

• North American automobile sales remained strong despite tariff challenges.

• Motorcycle sales performed well in Brazil and Vietnam, achieving record operating profit in motorcycle business segments.

• Power Products segment (marine engines and other) showed a slight decline in revenue with a minor operating loss.

• Continued investment in R&D and electrification, along with tariff recovery efforts, are part of management’s strategy for profitability improvement.

Regional and Global Sales Performance

• North America remains a key market with resilient automobile sales despite global trade challenges.

• Japan and other markets experienced currency and tariff-related headwinds impacting revenues and profitability.

• Global vehicle sales volumes showed some softness amid macroeconomic and trade uncertainties.

Profitability and Cost Factors

• Tariffs imposed on Japanese vehicle exports to the U.S. significantly impacted operating profits.

• Currency exchange rates, particularly the strengthening yen against the dollar, affected revenue translation and competitiveness.

• Operating expenses rose due to investments in electrification and new vehicle launches.

Debt and Liquidity

• Honda’s liquidity and cash flow remain solid, supporting ongoing investments.

• The company continues to execute share buyback programs to return value to shareholders.

Best Selling Models: Overview and Profit/Loss Status

Weakest Performers and Segment Challenges

• Power Products segment faced slight revenue decline and losses amid market softness.

• Tariff-related cost increases pressured profitability across automotive segments.

• Traditional internal combustion models under pressure as electrification accelerates.

Key Financial and Operational Metrics

Industry Outlook and Strategic Focus

• Honda plans to expand electrified vehicle offerings with an emphasis on hybrids and battery EVs.

• Tariff recovery measures and currency risk management remain priorities.

• Continued investments in technology, including electric and autonomous vehicles, aim to secure long-term growth.

• Management targets improving profit structure despite near-term uncertainties related to trade policies.

Summary

Honda's 2025 performance reflects the complex challenges of tariff impacts and currency volatility, which have significantly pressured profits despite stable revenue growth and strong sales, particularly in North America. The company is focused on navigating these headwinds through tariff recovery strategies, electrification investments, and operational discipline, while maintaining solid liquidity and shareholder returns. Near-term profit outlooks are cautious, with ongoing efforts to adapt to evolving global trade dynamics and market demands.

Sources

• Honda Motor Co., Ltd. Q2 2025 Financial Results and Earnings Reports

• Trade Only Today: Honda Fiscal Year 2025 Results Summary

• Nasdaq and CNBC reports on Honda Q2 2025 performance

• Official Honda Investor Relations disclosures, July–August 2025