Why did Honda guide to a record loss for FY2026?

Management is reassessing EV plans and booking large impairments after canceling three North America EV models. Slower U.S. EV demand and weaker policy support reduce expected returns. This led to net loss guidance of ¥420–690 billion, Honda’s first loss since listing, and a near-term reset of earnings and cash flows.

Which EV models did Honda cancel?

Honda halted development of three EVs for North America: Honda 0 SUV, Honda 0 Saloon, and Acura RSX. Management characterized the decision as painful. The move aims to curb cash burn while the company revises its product roadmap, partnerships, and investment timing for the next EV phase.

Is the dividend at risk after the guidance cut?

Honda’s trailing dividend yield is about 4.6% with a payout ratio near 58%. With a projected FY2026 loss, management may prioritize liquidity and capex flexibility. A dividend review is possible if cash flow weakens, so investors should watch the next earnings update and capital allocation commentary closely.

How should investors approach Honda stock now?

Use a cautious, staged approach. Valuation looks low on trailing metrics, but the loss guidance and weak momentum suggest patience. Wait for clarity on impairment size, capex, and a FY2027 cash flow bridge. Technical indicators favor disciplined entries and risk controls over aggressive buying.

Global Market Insights

HMC Stock Today: March 12 — Honda Sees Record Loss, Halts 3 EVs

ByHuzaifa Zahoor March 12, 2026March 12, 2026

Honda stock is in focus today after Honda guided to a ¥420–690 billion net loss for FY2026, its first since listing, and canceled three North America EV models. Shares of HMC face near-term pressure as investors digest impairments and a pivot toward hybrids. For Japan-based investors, the priority is capital protection, cash flow visibility, and dividend stability. We explain what the guidance cut means, how strategy is shifting, and how to position around Honda stock now.