Japanese auto giant Honda Missed fourth-quarter earnings estimates were down 76% for operating profit, and the company supported the full impact of U.S. tariffs.

Compared to the average LSEG estimate, Honda's results are:

• income: 5.36 trillion yen (USD 47.26 billion), 5.36 trillion yen
• Operating profit: 73.5 billion yen, 275.52 billion yen

Honda's fourth quarter ends on March 31.

For the fiscal year ended March, revenue was 21.69 trillion yen, while the average estimate was 21.63 trillion yen, while the average estimate for LSEG was 6.2%.

Operating profit fell 12.2% to 1.21 trillion yen, while LSEG's average estimate was 1.41 trillion yen.

Net profit for the full year fell 24.5% to 835.84 billion.

Despite record sales and operating profits from its motorcycle business, Honda's auto sales fell, mainly in China and Southeast Asia.

However, hybrid vehicle sales have expanded in North America due to higher EV incentives in the region.

Honda's result is a 25% tariff on foreign auto imports amid trade tensions with the United States.

Honda reportedly decided in March to produce its next-generation citizen hybrid in Indiana, U.S. rather than Mexico, to avoid potential tariffs on one of its best-selling car models, Reuters reported.

According to Carpro, Asian automakers accounted for six of the eight U.S. automakers passed sales in 2024, with Honda ranked fourth.

In its earnings release, Honda has lowered nearly all financial indicators for the fiscal year ended March 2026 compared to its latest full-year results. Its full-year operating profit is expected to fall nearly 59% to 500 billion yen.

Honda's expected net profit fell by 70.1% to 250 billion yen, while revenue was expected to slip 6.4% to 20.3 trillion yen.

Japan's second-largest automaker explained that the impact of global tariff policies is very important to its business, and frequent revisions make it difficult to formulate prospects.

"Moving forward, we will carefully evaluate the impact of tariff policies and expand recovery measures while at the same time increasing operating profits," the company said in its speech.

Honda also changed its dividend policy from the dividend payment ratio to "dividend dividend", predicting its increase of 2 yen per share to 70 yen per share for the current fiscal year.

Back in February, Honda and rival Nissan terminated a merger of more than $60 billion, which would have created the world's third largest automaker on sales.

Nissan also reported its fourth-quarter results, with operating profit falling nearly 94% to 5.8 billion yen while revenue remained flat.

The company turned a net loss of 676 billion yen ($4.5 billion) in the fourth quarter, compared with $100.13 billion in the same period of the same year.

Over the entire year, operating profits fell by nearly 88% year by year to 69.8 billion yen, which the company attributed to a decrease in sales, sales incentives and an increase in inflation. The income for the whole year is almost flat.

Nissan also announced plans to save 500 billion yen in the next few years. Among the measures taken, 20,000 workers will be reduced and their production plants will be fixed at 17 in March 2028.