Honda reports first loss since going public, some executives voluntarily take pay cuts, and U.S. stocks drop over 7% before the market opens.

K-LinePoet · 2026-04-05T13:00:06+00:00

Honda Motor Co. announced its first annual loss in 69 years since going public, expecting an operating loss of 270 billion to 570 billion yen for fiscal year 2025, with a net loss of 420 billion to 690 billion yen. Additionally, the company has canceled some electric vehicle development plans, with related losses estimated to reach up to 2.5 trillion yen. Following this announcement, the company's U.S. stocks fell over 7%.

K-LinePoet

2026-04-05 13:00:06

Abstract generation in progress

On March 12, Honda Motor Co., Ltd. announced its first annual loss since going public 69 years ago (listed in 1957).

Honda said it expects an operating loss of 270B to 570B yen for fiscal year 2025 (2025.4–2026.3) (about RMB 11.6 billion to 24.7 billion yuan), compared with a prior forecast of operating income of 550B yen. It also expects a net loss of 420B to 690B yen (about RMB 18.2 billion to 29.9 billion yuan), compared with a prior forecast of net income of 300B yen.

On the same day, the company said it canceled part of its R&D and launch plans for electric vehicles to be manufactured in the United States. It expects the total costs and losses arising from a reassessment of its electrification strategy to be as high as 2.5 trillion yen (about RMB 108.2 billion).

Honda said its guidance was sharply lowered for fiscal year 2025 and that, due to a reassessment of its automotive electrification strategy, some of its executives will voluntarily return part of their monthly compensation starting from fiscal year 2026.

After the news was released, as of 17:25 on the 12th, Honda Motor’s U.S.-listed shares fell by more than 7% in premarket trading.

** SFC **

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