Earnings quality
Operating cash flow stayed positive while reported operating profit turned negative — suggesting large non-cash charges (e.g. impairments) rather than a pure cash burn.
Honda Motor Co., Ltd.
Ticker 7267 · 🇯🇵 Japan · Consolidated IFRS · amounts in yen
Filed 2026-06-18 · Period end 2026-03-31
Takeaway
Park for nowRevenue held up, but profitability collapsed into a large operating loss — this filing reads as a reset year, not a growth story.
operating cash stayed positive despite an operating loss; equity ratio is 35.3%.
Profitability is under pressure without a clear cash offset in this page — wait for the next cash / segment confirmation.
ActionPark for now
OP margin—
Equity ratio35.3%
Last price—
Trailing P/E—
Look at next
- Compare operating cash flow to reported profit across the last two years.
- Open English IR for management commentary on outlook and capital allocation.
- Overlay peers on Compare before judging relative momentum.
About the company
本田技研工業株式会社 is a Japanese listed company whose core business is the manufacture and sale of electric motors, based on its annual securities report business description.
- electric motors
Segments Automobile Business · Financial Services Business · Motorcycle Business · Power Product And Other Businesses · Total Of
Financial statements
Income statement
| Account | FY2025 (ended Mar 31, 2025) | FY2026 (ended Mar 31, 2026) |
|---|---|---|
| Revenue | — | — |
| Cost of sales* | — | — |
| Gross profit | — | — |
| Operating profit (loss) | ¥1.2T | -¥414.3B |
| Finance income | — | — |
| Finance costs | — | — |
| Income tax expense | ¥414.6B | -¥50.3B |
| Profit (loss) | ¥903.0B | -¥353.0B |
| Profit (loss) attributable to owners | ¥835.8B | -¥423.9B |
| Basic EPS (¥) | — | — |
Balance sheet
| Account | FY2025 (ended Mar 31, 2025) | FY2026 (ended Mar 31, 2026) |
|---|---|---|
| Cash and cash equivalents | ¥4.5T | ¥5.1T |
| Current assets | ¥11.7T | ¥13.1T |
| Non-current assets | ¥19.1T | ¥20.4T |
| Total assets | ¥30.8T | ¥33.5T |
| Short-term borrowings | — | — |
| Current liabilities | ¥8.6T | ¥10.2T |
| Non-current liabilities* | ¥9.5T | ¥11.2T |
| Total liabilities | ¥18.1T | ¥21.4T |
| Equity attributable to owners | ¥12.3T | ¥11.8T |
| Total equity | ¥12.6T | ¥12.1T |
Cash flow statement
| Account | FY2025 (ended Mar 31, 2025) | FY2026 (ended Mar 31, 2026) |
|---|---|---|
| Cash flows from operating activities | ¥292.2B | ¥1.1T |
| Cash flows from investing activities | -¥942.0B | -¥852.2B |
| Cash flows from financing activities | ¥280.5B | -¥36.9B |
| Net increase (decrease) in cash | -¥425.8B | ¥589.7B |
| Cash at end of period | ¥4.5T | ¥5.1T |
Five-year trends
Key metrics
| Metric | Trend | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|
| Revenue | ¥14.6T | ¥16.9T | ¥20.4T | ¥21.7T | ¥21.8T | |
| Operating profit | ¥871.2B | ¥780.8B | ¥1.4T | ¥1.2T | -¥414.3B | |
| Profit to owners | ¥707.1B | ¥651.4B | ¥1.1T | ¥835.8B | -¥423.9B | |
| Total assets | ¥24.0T | ¥24.7T | ¥29.8T | ¥30.8T | ¥33.5T | |
| Cash & equivalents | ¥3.7T | ¥3.8T | ¥5.0T | ¥4.5T | ¥5.1T | |
| Owners’ equity | ¥10.5T | ¥11.2T | ¥12.7T | ¥12.3T | ¥11.8T |
How we read these numbers
From the notes
| Item | Amount | Note |
|---|---|---|
| Provision for affiliate business losses | -¥25.2B | Parent-company special loss (特別損失) |
| Parent special losses (total) | -¥87.9B | Sum of 特別損失 on the parent-company statement |
Challenged
Revenue held up, but profitability collapsed into a large operating loss — this filing reads as a reset year, not a growth story.
On the income statement, revenue moved from — to — (—), so the top line did not break. Gross profit only slipped from — to —, while operating profit swung from ¥1.2T to -¥414.3B — the damage is concentrated below gross profit.
The notes flag material one-offs this year, including Provision for affiliate business losses ¥25.2B, Parent special losses (total) ¥87.9B. Treat these as discrete charges when reading the earnings move.
The parent-company income statement also shows material special losses (valuation, spin-off, and affiliate support items).
Operating cash flow was ¥1.1T (prior ¥292.2B), with cash on the balance sheet at ¥5.1T versus ¥4.5T.
The balance sheet got heavier on leverage. Total liabilities rose to ¥21.4T while owners’ equity fell to ¥11.8T. ROE moved from 6.7% to -3.5%, and the equity ratio from 40.1% to 35.3%.
Liquidity & leverage
Short-term borrowing levels look more stable year over year.
Capital buffer
Owners’ equity ratio fell from 40.1% to 35.3%; the balance sheet absorbed a heavy loss year.
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Source: EDINET S100YDD9
(本田技研工業株式会社), period end 2026-03-31.