On May 11, 2026, Honda officially released its financial report for fiscal 2025 (ended March 2026), posting a net loss of 423.94 billion yen (approximately $2.8 billion). This is the largest loss the automaker has ever faced, reflecting severe operational and business difficulties.
The main reasons for the loss include soaring raw material costs, global supply chain disruptions, and a sharp decline in vehicle demand in key markets such as North America and Asia. Additionally, heavy investment in electric vehicle (EV) technology and research and development expenses added to the financial burden.
In fiscal 2024, Honda had recorded a net profit of around 170 billion yen, but the 2025 results marked a complete reversal. Honda's management said it will undertake a comprehensive restructuring, including cutting operating costs and focusing on strategic vehicle models to turn the situation around.
Market analysts said the result will put significant pressure on Honda's leadership to implement more effective recovery measures in fiscal 2026.
