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Honda Forecasts First Annual Net Loss Since Listing After Halting Three North America EVs

The company will shift toward hybrids with a four-wheel strategy update slated for May.

Overview

  • Honda revised its FY2026 net income outlook to a ¥420–¥690 billion loss, reversing a prior ¥300 billion profit forecast.
  • Development and sales for three EV models planned for North American production have been stopped, triggering impairment charges on related assets.
  • Operating guidance was cut to a ¥270–¥570 billion loss, while the revenue forecast of ¥21.1 trillion was left unchanged.
  • CEO Toshihiro Mibe and the deputy CEO will return 30% of their monthly pay for three months, and other executives tied to the four-wheel business will return 20% for the same period.
  • Honda cited weaker-than-expected EV demand linked to U.S. policy shifts under President Trump and intensifying competition in China, and it warned of potential additional losses of up to ¥2.5 trillion after the current fiscal year.