Honda raises full-year profit outlook, books $3 billion in EV-linked costs in Q2

Honda raised its full-year operating profit forecast by 20% to 780 billion yen ($4.94 billion) as it expects resilient hybrid demand and support from a weaker yen, aiming to offset softer sales in China. The outlook comes despite a sharp deterioration in quarterly results: operating profit for July–September fell 39% year-on-year to 118 billion yen, missing a 250 billion yen median estimate in an LSEG poll. Honda also booked 484.8 billion yen in EV-restructuring costs in Q2, contributing to a surprise profit drop. The company said it will build a $3 billion hybrid auto plant in Ohio producing 240,000 cars annually starting in 2029.