Honda posts first annual operating loss in decades as EV charge tops $9 billion

Honda Motor (7267.T, HMC) on May 14, 2026, reported its first annual operating loss in nearly 70 years as a listed company, pressured by U.S. tariffs and more than $9 billion in electric-vehicle restructuring costs. The Japanese automaker posted an operating loss of 414.3 billion yen, or $2.63 billion, for the year ended March, wider than the 315.6 billion yen loss expected by analysts polled by LSEG. Honda earned a 1.2 trillion yen operating profit a year earlier. Honda booked 1.45 trillion yen in EV-related losses for the fiscal year and expects an additional 500 billion yen in costs in the year that began in April 2026. The company forecast a return to profitability, projecting 500 billion yen in operating profit, supported by cost cuts and its profitable motorcycle business.