Honda Motor Co., Ltd. (HMC:NYSE) announced its consolidated financial results for the fiscal third quarter ended December 31, 2024

Rhea-AI Summary

Honda Motor (HMC) reported its Q3 FY2024 financial results, achieving an operating profit of 1,139.9 billion yen with a 7.0% operating margin for the nine months ended December 31, 2024. The company's motorcycle business exceeded 15.5 million units in sales, showing strong global performance. However, automobile sales decreased by 297,000 units, primarily due to lower sales in Asia, particularly China, despite strong North American performance.

Honda maintains its previous forecast for FY2025, projecting operating profit of 1,420.0 billion yen and profit for the year of 950.0 billion yen. The company revised its motorcycle sales forecast upward while reducing automobile sales expectations from 3.8 to 3.75 million units. Operating cash flows after R&D adjustment reached 1,945.0 billion yen. Additionally, Honda reported progress on its share buyback program, having acquired 184.9 billion yen of shares toward its 1.1 trillion yen target announced in December 2024.

Positive

• Operating profit reached 1,139.9 billion yen with 7.0% margin
• Motorcycle sales exceeded 15.5 million units globally
• Strong sales performance in North American automobile market
• Substantial share buyback program of 1.1 trillion yen in progress
• Strong operating cash flows of 1,945.0 billion yen after R&D adjustment

Negative

• Automobile sales declined by 297,000 units
• Weakening performance in Asian markets, especially China
• Downward revision of automobile sales forecast from 3.8M to 3.75M units

Insights

Financial Analyst

Honda's Q3 results reveal a compelling narrative of strategic resilience and market adaptation. The motorcycle division has emerged as a important growth driver, achieving record-breaking sales of over 15.5 million units, demonstrating Honda's strong position in emerging markets and efficient supply chain management. This success effectively counterbalances challenges in the automotive segment.

The maintained full-year profit guidance of 1,420.0 billion yen operating profit, despite lowered automotive sales targets, indicates robust cost control measures and improved operational efficiency. The 7.0% operating margin suggests healthy profitability amid market challenges.

The standout element is Honda's aggressive capital return strategy, with a substantial 1.1 trillion yen share buyback program. Having already executed 184.9 billion yen of purchases, this represents one of the largest buyback programs in the automotive sector. The strong operating cash flow of 1,945.0 billion yen after R&D adjustment demonstrates Honda's ability to fund both strategic investments and shareholder returns.

Regional performance shows a nuanced picture: North American automotive sales remain robust, while Asian markets, particularly China, face headwinds. The reduction in Japan sales forecast signals domestic market challenges, but the company's global diversification strategy provides important balance.

TOKYO, Feb. 13, 2025 /PRNewswire/ -- Honda Motor Co., Ltd. today announced its consolidated financial results for the fiscal third quarter ended December 31, 2024.

Nine Months Ended December 31, 2024（Apr. – Dec.)

• Operating Profit 1,139.9 bil. Yen / Operating Margin 7.0%
• In motorcycle business, Unit Sales achieved over 15 million 508 thousand in nine months mainly due to strong sales in global.
• In automobile business, Unit Sales decreased by 297 thousand due to a decrease in sales in Asia, mainly China, despite strong sales in North America.
• Operating cash flows after R&D adjustment 1,945.0 bil. Yen.

Financial Forecast for FYE March 31, 2025 

• Operating Profit 1,420.0 bil. Yen / Profit for the year 950.0 bil. Yen
• In motorcycle business, Unit Sales revised upward to record sales volume.
• In automobiles business, Unit Sales revised downward from 3.8 million to 3.75 million, mainly reflecting a decrease in Japan.
• Operating profit and profit for the year remain unchanged from our previous forecast*.
  * Previous forecast: announced on November 6

Shareholder Returns 

• About status of Acquisition of the Company's Own Shares, 184.9 billion yen has been acquired, for the share buyback of 1 trillion 100 billion yen resolved on December 23, 2024 (as of January 31, 2025).
• We continue to aim for the completion of up to 1 trillion 100 billion yen / 1.1 billion shares in share buyback.

Honda's financial results can be accessed from following web site address.
https://global.honda/en/investors/library/documents.html

View original content:https://www.prnewswire.com/news-releases/honda-motor-co-ltd-hmcnyse-announced-its-consolidated-financial-results-for-the-fiscal-third-quarter-ended-december-31-2024-302375981.html

SOURCE Honda Motor Co., Ltd.

FAQ

What is Honda's (HMC) operating profit for Q3 FY2024?

Honda reported an operating profit of 1,139.9 billion yen with a 7.0% operating margin for the nine months ended December 31, 2024.

How many motorcycle units did Honda (HMC) sell in the first nine months of FY2024?

Honda's motorcycle business achieved sales of over 15.508 million units during the nine-month period ended December 31, 2024.

What is Honda's (HMC) share buyback target announced in December 2024?

Honda announced a share buyback program of up to 1.1 trillion yen or 1.1 billion shares on December 23, 2024.

Why did Honda (HMC) revise its FY2025 automobile sales forecast?

Honda revised its automobile sales forecast downward from 3.8 million to 3.75 million units, mainly due to decreased sales in Japan.

What is Honda's (HMC) profit forecast for FY2025?

Honda maintains its forecast of 1,420.0 billion yen in operating profit and 950.0 billion yen in profit for the fiscal year ending March 31, 2025.