Honda posts first annual loss on EV restructuring costs
Honda posted its first annual loss in decades due to a 9 billion dollar EV restructuring charge. The automaker expects a return to profit this fiscal year.
HONDA MOTOR CO LTD posted an annual operating loss of 414.3 billion yen ($2.63 billion) after absorbing $9 billion in electric-vehicle restructuring costs. This result marks the first annual loss for the automaker in nearly 70 years as a listed entity. The transition to EVs is proving more capital-intensive than anticipated, forcing a massive write-down that wiped out a 1.2 trillion yen profit from the prior year.
### EV Restructuring Drives Record Loss The 414.3 billion yen loss for the fiscal year ended March was deeper than the 315.6 billion yen loss projected by 22 analysts polled by LSEG. Total EV-related losses reached 1.45 trillion yen during the period. Japan's second-largest automaker also faced headwinds from United States tariffs, which pressured margins alongside the structural shift in its powertrain strategy.
