STOCKS | Honda Raises Full-Year Profit Outlook as EV Business Risks Persist

According to Jin10, Honda raised its full-year profit forecast and expects operating profit of 780 billion yen ($4.9 billion) for the fiscal year ending in March 2027, up from previous guidance of 650 billion yen but below analysts’ forecast of 839 billion yen. Profit for the three months ended September 30 was 118 billion yen, well below expectations of about 265 billion yen. Honda’s motorcycle demand and North American sales remained bright spots, despite continuing effects from mistimed bets on electric vehicles. The company recorded a 2.5 trillion yen impairment earlier this year. Julie Boote, an analyst at Pelham Smithers Associates, said Honda had not accounted for all electric-vehicle-related costs, which could weigh heavily on the remainder of the fiscal year.