Honda Motor Co. (HMC.US) Q2 profits fall short of expectations, drastically cutting annual profit guidance.

According to the Securities Times app, Honda Motor Co. (HMC.US) has lowered its annual profit forecast by about one-fifth, with a 25% decrease in operating profit for the second quarter. The decline in performance is due to U.S. import tariffs and one-time costs related to electric vehicles. The second largest Japanese automaker has lowered its annual operating profit forecast for the year ending March 2026 by 21% to 550 billion yen (approximately $36.5 billion), down from the previous forecast of 700 billion yen. The new forecast also takes into account the factor of reduced production due to a shortage of chip supply.