Powersports offset Honda’s automotive losses as it posts solid motorcycle gains in 2025
Honda Motor Co., Ltd. reported consolidated operating profit of 591.5 billion yen (~$3.83 billion USD) for its fiscal third quarter ended Dec. 31, 2025, with its motorcycle and powersports operations continuing to outperform its automotive division.
Overall operating profit declined 48% year-over-year amid U.S. tariff impacts and one-time expenses tied to the company’s battery electric vehicle (BEV) program. However, Honda’s motorcycle and power products segments remained profitable and provided a critical earnings offset.
Motorcycles offset automotive losses
For the nine months (April–December 2025), global motorcycle sales increased 6% to 16.44 million units, driven primarily by strong demand in India and Brazil.
Combined with power products and financial services, Honda’s motorcycle-related businesses generated 758 billion yen (~$4.91 billion USD) in operating profit — more than offsetting the automotive division’s 166.4 billion yen operating loss (~$1.08 billion USD).
By comparison, Honda’s global automobile sales fell 9.1% to 2.561 million units during the same period. Automotive revenue declined, and margins were pressured by tariffs, higher sales incentives in Asia and EV-related restructuring costs.
Power products steady
Honda’s power products division — which includes generators, lawn and garden equipment and marine engines — recorded sales of 2.5 million units, down slightly year-over-year. Despite the modest decline, the segment continued contributing to overall powersports profitability.
Full-year outlook
For the fiscal year ending March 31, 2026, Honda lowered its operating profit forecast to 550 billion yen (~$3.57 billion USD), down from a previous projection of 700 billion yen.
The company maintained its global motorcycle sales forecast at a record 21.3 million units, signaling continued confidence in emerging markets, particularly India and Brazil.
Honda reduced its projected tariff impact from an initial estimate of 450 billion yen to 310 billion yen (~$2.01 billion USD), citing collaboration with suppliers and other mitigation efforts. A weaker yen provided some profit support, though intensified competition in Asian automotive markets continued to pressure margins.
Net profit for the nine months totaled 465.4 billion yen (~$3.02 billion USD), representing a 42% year-over-year decline.
Dealer implications
Honda’s results reinforce the relative strength of the global motorcycle segment compared with automotive. Continued unit growth and nearly $5 billion in operating profit from motorcycle-related operations underscore the stability of Honda’s two-wheel and power equipment businesses — even as the company recalibrates its EV investments and navigates tariff headwinds in the automotive sector.
For North American dealers, the sustained global momentum in motorcycles suggests continued product development investment and supply chain prioritization for the powersports category heading into 2026.
