Honda has its first loss in history, and the reason is revealed after an estimated shortfall of 400 billion yen and an impact that could reach 2.5 trillion, putting the Japanese giant in one of its biggest financial crises in almost 70 years.

Written by Alisson Ficher

Published on 12/05/2026 at 15:26

Be the first to react!

Billion-dollar revision in electric vehicle plans puts Honda facing unprecedented operating loss since its IPO, as the Japanese manufacturer tries to contain losses, reorganize investments, and use motorcycle performance to sustain financial recovery in the coming years.

According to information published by Nikkei Asia and reported by Valor Econômico, Honda is expected to end the fiscal year concluded in March 2026 with an estimated operating loss of 400 billion yen, a value equivalent to approximately US$ 2.55 billion.

If the projection is confirmed in the financial report scheduled for May 14, 2026, the Japanese manufacturer will record its first annual operating loss since its IPO in 1957, after having achieved an operating profit of nearly 1.2 trillion yen in the previous fiscal year.

Revision of EV strategy weighs on Honda’s accounts

A large part of the financial deterioration is linked to the revision of the electrification strategy, a move that forced Honda to recognize high costs associated with projects, industrial investments, and accounting adjustments related to the development of electric vehicles.

ARTICLE CONTINUES BELOW

Honda still treats billion-dollar loss as an estimate

Following the publication by Nikkei Asia, Honda stated that it had not yet officially disclosed an operating loss of 400 billion yen, although it confirmed that the expected loss remains within the range previously presented to the market.

At the time, the manufacturer attributed the financial impact mainly to the reevaluation of its automotive electrification strategy, without anticipating before the definitive balance sheet how much each business area would weigh on the consolidated result.

Even without formal confirmation to date, the estimate released by the international press remains aligned with the financial projections recognized by the Japanese company itself in the communications presented to the market throughout March.

Motorcycle division gains importance in recovery

Despite strong pressure on the automotive sector, Honda still expects to recover operating profit in the fiscal year ending March 2027, relying mainly on the performance of its global motorcycle division.

With a consolidated presence in Asian markets, this segment has been helping to offset some of the losses recorded in the automotive sector, which currently requires high investments in batteries, software, electric platforms, and industrial modernization.

While the motorcycle business maintains more consistent results, the performance of automobiles highlights the difficulty of sustaining cash generation in regions where demand for electric vehicles has slowed more than expected.

Chinese competition and lower demand change plans

In recent years, the global electric vehicle market has faced a more complex environment, marked by slowing demand in some strategic regions and increasing competition from Chinese manufacturers.

Given this scenario, traditional automakers accelerated investments to compete with companies specializing in EVs, but have had to contend with tighter margins, pressured prices, and consumers still divided between hybrid and fully electric models.

Although Honda has not abandoned its electrification plans, the strategy revision demonstrates a more cautious approach regarding timelines, production scale, and financial return on projects developed for this segment.

Official balance sheet should show the real size of the impact

When Honda officially releases its full financial results, the market should understand more clearly how much of the operating loss is directly linked to electric vehicles and how much results from accounting adjustments related to the investments made by the company.

Until the final publication of the balance sheet, the estimated operating loss of around 400 billion yen already represents a significant change for a manufacturer historically associated with operational stability in different areas of global mobility.

0 Comments

most recent

older Most voted

Honda has its first loss in history, and the reason is revealed after an estimated shortfall of 400 billion yen and an impact that could reach 2.5 trillion, putting the Japanese giant in one of its biggest financial crises in almost 70 years.

Billion-dollar revision in electric vehicle plans puts Honda facing unprecedented operating loss since its IPO, as the Japanese manufacturer tries to contain losses, reorganize investments, and use motorcycle performance to sustain financial recovery in the coming years.

Revision of EV strategy weighs on Honda’s accounts

Honda still treats billion-dollar loss as an estimate

Motorcycle division gains importance in recovery

Chinese competition and lower demand change plans

Official balance sheet should show the real size of the impact

A giant printer called the “Ferrari” of concrete has landed in Latin America and can already build a 120-square-meter house in just 48 hours, making the traditional construction site look like something from the last century.

Brazil will harvest a record crop of up to 357 million tons of grains, but it does not have the capacity to store a large part of it. The storage deficit has reached the highest level in history and is equivalent to almost the entire production of Argentina.

Four times faster than the Concorde, capable of taking passengers from New York to London in less than an hour at Mach 5.5, and with an engine that switches from turbojet to ramjet mid-flight at Mach 3.5, the Hermeus Quarterhorse went from paper to its first flight in just 19 months.

Under nearly 2 kilometers of ice in Antarctica, scientists have discovered an ancient landscape sculpted by rivers up to 60 million years ago, the size of Wales, preserved as a time capsule that could help predict the advance of ice towards the ocean.

She started by collecting oyster shells from restaurants and today she has already accumulated more than 10 tons to restore reefs, recover coastal habitats, and demonstrate how a common waste can become a tool for ocean conservation.

Bricklayers off the scaffolding? New system uses autonomous drones to position bricks and apply adhesive in the air, creating walls with two flying robots working as a team.

Processors can become 1,000 times faster with a new device that uses light pulses, operates in 40 picoseconds, and reduces the heat that stalls data centers.

Noise in the sky frightened residents: NASA confirms that a meteor exploded over New England with a force equivalent to 230 tons of TNT

The paycheck that seemed impossible: São José employee receives R$ 7.94 after legal strike, while deductions by the City Hall affect over a thousand employees and become a target of inquiry in the City Council.

With only R$ 50 in his pocket and a dream, the 26-year-old Tocantins native Willian Gomes left Tocantins and has already cycled over 4,000 kilometers towards Ushuaia, at the southern tip of Argentina, without accepting a single ride in eight months.

Has the war with artificial intelligence already begun? The US Army tests armed robots in the Moroccan desert, uses drones with explosives, and showcases a system capable of reducing military decisions from hours to just 3 minutes.

Honda has its first loss in history, and the reason is revealed after an estimated shortfall of 400 billion yen and an impact that could reach 2.5 trillion, putting the Japanese giant in one of its biggest financial crises in almost 70 years.

Billion-dollar revision in electric vehicle plans puts Honda facing unprecedented operating loss since its IPO, as the Japanese manufacturer tries to contain losses, reorganize investments, and use motorcycle performance to sustain financial recovery in the coming years.

Revision of EV strategy weighs on Honda’s accounts

Honda still treats billion-dollar loss as an estimate

Motorcycle division gains importance in recovery

Chinese competition and lower demand change plans

Official balance sheet should show the real size of the impact

A giant printer called the “Ferrari” of concrete has landed in Latin America and can already build a 120-square-meter house in just 48 hours, making the traditional construction site look like something from the last century.

Brazil will harvest a record crop of up to 357 million tons of grains, but it does not have the capacity to store a large part of it. The storage deficit has reached the highest level in history and is equivalent to almost the entire production of Argentina.

Four times faster than the Concorde, capable of taking passengers from New York to London in less than an hour at Mach 5.5, and with an engine that switches from turbojet to ramjet mid-flight at Mach 3.5, the Hermeus Quarterhorse went from paper to its first flight in just 19 months.

Under nearly 2 kilometers of ice in Antarctica, scientists have discovered an ancient landscape sculpted by rivers up to 60 million years ago, the size of Wales, preserved as a time capsule that could help predict the advance of ice towards the ocean.

She started by collecting oyster shells from restaurants and today she has already accumulated more than 10 tons to restore reefs, recover coastal habitats, and demonstrate how a common waste can become a tool for ocean conservation.

Bricklayers off the scaffolding? New system uses autonomous drones to position bricks and apply adhesive in the air, creating walls with two flying robots working as a team.

The labor shortage has changed its face in Brazil: companies hire 80% more, but workers stay only 6.8 months in the job, the service market becomes a “revolving door,” and businesses spend increasingly more to train teams that soon leave.

Chinese giant chooses SC to set up its first factory in Brazil, investing R$ 250 million and producing MRI machines costing R$ 10 million each, with 100 direct jobs and 5% of revenue allocated to research.

After selling a unit for R$ 115 million to pay off debts, a traditional factory in SC founded in 1932 has a new R$ 64.8 million plan denied by the court and retains about 690 workers in Joinville.

Use of slimming pens skyrockets in Brazil, surpasses the global average, and causes unexpected changes in consumption habits, diet, beauty, and the wellness market.

Itaú shuts down service, lays off 350 employees, and creates internal tension after closing an operation created just 10 months ago; employees report pressure for targets, system failures, and extra costs to serve customers.

Processors can become 1,000 times faster with a new device that uses light pulses, operates in 40 picoseconds, and reduces the heat that stalls data centers.

Noise in the sky frightened residents: NASA confirms that a meteor exploded over New England with a force equivalent to 230 tons of TNT

The paycheck that seemed impossible: São José employee receives R$ 7.94 after legal strike, while deductions by the City Hall affect over a thousand employees and become a target of inquiry in the City Council.

With only R$ 50 in his pocket and a dream, the 26-year-old Tocantins native Willian Gomes left Tocantins and has already cycled over 4,000 kilometers towards Ushuaia, at the southern tip of Argentina, without accepting a single ride in eight months.

Has the war with artificial intelligence already begun? The US Army tests armed robots in the Moroccan desert, uses drones with explosives, and showcases a system capable of reducing military decisions from hours to just 3 minutes.