F3/27 1Q Results: Profitability Improves in 4-wheeler Business

研报英文原文证据摘录

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M

Update

August 5, 2026 03:43 PM GMT

Morgan Stanley MUFG Securities Co., Ltd.+

Honda Motor (7267) | Japan

Hiroto Segawa

Equity Analyst

F3/27 1Q Results: Profitability

Improves in 4-wheeler Business

Shinji Kakiuchi

Equity Analyst

Hayato Takashima

Equity Analyst

AlphaSignals Earnings Reaction

Unchanged

Meaningful upside

Meaningful revision higher

Impact to our thesis

Financial results versus consensus

Direction of next 12-month

consensus EPS

Source: Company data, Morgan Stanley Research

Honda Motor (7267.T, 7267 JT)

Key Takeaways

Apr-Jun profit: Profitability in 4-wheelers exceeded expectations; very positive

impression. Lifted OP plan still leaves room for upside.

2-wheelers: In line with our expectations, but sales expansion in India and Brazil

drove profit growth. OPM in 2-wheeler business at record high of 20.5%.

Autos & Shared Mobility | Japan

Stock Rating

Industry View

Price target

Shr price, close (Aug 5, 2026)

Mkt cap, curr, basic (bn)

Avg daily trading value (bn)

Equal-weight

In-Line

¥1,600

¥1,636

¥6,368.3

¥27.4

4-wheelers: China sales continued to decline. In North America, earnings growth

exceeded our expectations, driven by a higher mix of HEV models and by stronger

profitability from increased sales of affordable ICE models.

Apr-Jun (1Q): Revenue was ¥6.0615trn (+14% YoY) and OP reached ¥530.7bn. OP

significantly exceeded the consensus of ¥266.5bn. Compared to our forecast,

motorcycle earnings were largely in line, while the automobile business

outperformed by around ¥200bn, driven mainly by favorable model mix and pricing

effects in North America. OP also exceeded Honda's internal plan by approximately

¥100bn, supported by a weaker yen (+¥40bn), higher unit sales (+¥35bn), and a

smaller-than-expected negative impact from rising raw material costs (+¥25bn).

Reference: Autos & Shared Mobility: US Sales of J-OEMs (Jul 2026): Honda Records

Solid Sales

F3/27 guidance: Honda raised its OP forecast from ¥500bn (based on ¥145/$) to

¥650bn (based on ¥155/$). However, there were no changes to any items other than

the positive impact from the revision to its FX assumptions (+¥170bn). In other

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