Honda Motor Co., Ltd.

Q3 FY2026 (ended Dec’25) headline performance: margin/cash strong, but profits down YoY - Operating profit: JPY 591.5bn, down JPY 548.4bn YoY. - Automotive profit pressure drove the decline; motorcycle and financial services were supportive. - Key Q3 “headwinds”: one-off EV-related expenses (JPY -267.1bn) and tariffs (JPY -289.8bn). - Cash generation (after R&D adjustment): Operating cash flow after R&D adj. = JPY 1.8558tn; free cash flow ex financial services = JPY 917.4bn. - Balance sheet: Net cash = JPY 3.1707tn at end of Q3.

Sales: motorcycles strong (record), automobiles weaker (semiconductors + China + tariff) - 9M cumulative unit sales vs prior year (as stated): - Motorcycles: 16.44m units (increase driven by India, Pakistan, Brazil). - Automobiles: 2.561m units (decline largely China/Asia, and semiconductor-related supply constraints). - Power products: 2.507m units (incremental in Europe, decline mainly Asia). - Management view: motorcycle performance is solid globally; Vietnam ICE restriction concern had only limited impact vs assumptions.

Segment profit mix: motorcycles offsetting, but automotive loss/control issues remain the core - Operating profit by segment (Q3/9M framing as presented): - Motorcycles: ~JPY 546.5bn (up YoY; net positive from sales volume + price/cost). - Automobiles: operating loss ~JPY 166.4bn (profit deterioration explained by semiconductor disruption, one-off EV costs, and tariff headwind). - Financial services: profit JPY 218bn (supportive). - Power products & other: small loss (~JPY 6.5bn). - Investor take-away (“bad”): automotive profitability is currently dominated by nonrecurring EV costs + tariff impact, plus still-evolving market conditions.