Honda H1 FY2027 results: Record motorcycle sales drive 48.1% jump in operating profit, full-year forecast raised

Honda has reported a strong first half for FY2027, supported by record motorcycle sales and a recovery in its North American car business. The results came despite mounting competition in the global EV market and ongoing adjustments to the company's electrification strategy.

For the six months ended 30 September 2026, Honda recorded higher revenue and operating profit, prompting it to raise its full-year earnings forecast.

Operating profit rises 48.1%

Honda's revenue for the first half of FY2027, covering April to September 2026, reached JPY 12.04 trillion (approximately RM 358 billion), up 13.2% year on year.

Operating profit climbed 48.1% to JPY 648.7 billion (approximately RM 19.3 billion).

The results also include JPY 484.8 billion (approximately RM 14.4 billion) in EV-related losses and supplier compensation costs. These expenses followed changes to Honda's electrification strategy and the cancellation of development plans for certain EV models in response to shifts in the global market.

Excluding these costs, Honda's adjusted operating profit stood at around JPY 1.13 trillion (approximately RM 33.6 billion), up 71.3% from a year earlier. The figure points to stronger underlying earnings from its core operations.

Motorcycle business drives earnings

Honda's motorcycle business remained a major contributor to the group's performance, recording its highest-ever global sales for a first half.

Honda sold 11.9 million motorcycles worldwide during the six-month period, an increase of 10.6% year on year. India and Brazil were among the strongest-performing markets.

In Brazil, Honda held an estimated 70% market share. Demand has been supported by the widespread use of motorcycles for delivery services, as well as growing numbers of women buying motorcycles.

Higher sales helped the motorcycle business generate operating profit of JPY 439 billion (approximately RM 13.1 billion), with an operating margin of 19.3%.

Honda is also preparing to expand production in Brazil. It plans to increase annual capacity at its local factory from 1.6 million to 2.3 million motorcycles by 2029.

North America offsets weakness in car sales

Honda's car business faced a more mixed picture. Sales in China came under pressure from intense competition with local manufacturers, but stronger performance in North America helped offset some of the weakness.

In North America, demand for fully electric vehicles has become more measured, while compact cars and hybrid electric vehicles (HEVs) have remained popular. Honda's established e:HEV technology helped it capitalise on demand for hybrids, supporting a recovery in both regional sales and profitability.

Honda is also expanding its hybrid production plans in the US. The company will build a new vehicle plant in Ohio and plans to introduce larger hybrid models in the D-segment and above from 2029, further strengthening its position in the North American market.

Also Read: Honda to invest US$3 billion in new US plant, develop all-new V6 hybrid system

Honda increases stake in Astemo

Beyond vehicle manufacturing, Honda is investing in technologies that will support its shift towards software-defined vehicles (SDVs).

On 1 October 2026, Honda increased its stake in Astemo, a key automotive components and software supplier, through an investment of approximately JPY 152.3 billion (RM 4.53 billion). Its ownership rose from 40% to 61%, making Astemo a consolidated subsidiary.

Honda said the move would help accelerate the development of AI and in-car software, while improving development efficiency and cost competitiveness as the industry moves towards SDVs.

Full-year earnings forecast raised

Following its stronger-than-expected first-half performance, Honda has raised its FY2027 full-year operating profit forecast by 20%, an increase of JPY 130 billion (approximately RM 3.87 billion). The new target stands at JPY 780 billion (approximately RM 23.2 billion).

Honda's interim dividend remains at JPY 35 per share (approximately RM 1.04). It expects to pay a full-year dividend of JPY 70 per share (approximately RM 2.08).

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