Honda Posts First Annual Loss in Nearly 70 Years on EV Write-Downs

Overview

• Honda, which reported results Thursday, logged a 414.3 billion yen operating loss and about $2.7 billion in net losses for the year that ended in March.
• The company booked 1.45 trillion yen in EV-related charges after canceling planned U.S. electric models and suspending an $11 billion EV and battery project in Canada, and it expects another 500 billion yen in costs this year.
• Executives blamed new U.S. import tariffs and the loss of EV tax credits under President Donald Trump, plus weaker demand and tougher rivals in China such as BYD.
• Honda cut executive pay, kept its annual dividend, and pledged at least 800 billion yen in shareholder returns over three years, which helped lift the stock to a two-month high.
• The automaker scrapped near-term EV sales targets and will lean on its profitable motorcycle unit, while forecasting a 500 billion yen profit this year in a sector that has recorded about $67 billion in EV write-downs.