Honda Motor Company, Ltd. (HMC) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Thank you for taking time to attend Honda's financial results press conference for the fiscal year ended March 31st, 2025. First, the executives in attendance. Director, President, and Representative Executive Officer Toshihiro Mime. Hello. Thank you. Director, Executive Vice President and Representative Executive Officer Noriya Kaihara. This is Kaihara. Thank you for joining. Director, Managing Executive Officer Eiji Fujimura. This is Fujimura. Thank you. Mr. Mibe will give a summary of the financial results, followed by Mr. Kaihara's explanation of results of the fiscal year ended March 2025 and 2026, as well as shareholders' return. Mibe Blasan, please. Thank you for your continued understanding of Honda's business activities. The financial results for the FYE March 2025 and the outlook for FYE March 2026 are as follows. First summary of the financial results. Operating profit for the FYE March 2025 was 1 trillion 213.4 billion yen. In the fourth quarter of the same fiscal year, we changed the accounting method for automobile product warranty provisions. This one-time expense excluded operating profit was 1 trillion 341 billion yen. Motorcycle business saw strong unit sales globally, achieving record highs in unit sales, operating profit and operating profit margin. Automobile business saw a decline in unit sales mainly in China and ASEAN and was impacted by increased North American incentives for EVs. However, hybrid EV sales expanded. Operating cash flow after R&D adjustments, which represents the source of future investment, remained as high as last fiscal year, reaching 2 trillion 800 billion yen. On consolidated financial results for FYE March 2026, the impact of tariff policies is huge, combined with frequent revisions making it difficult to formulate an out...