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Honda Motor Co. has raised its profit forecast following the release of its quarterly performance, boosted by a weak yen and strong demand for hybrid vehicles in the U.S. market. The Japanese automaker currently expects operating profit for the fiscal year ending March 2027 to reach 650 billion yen, up from the previous estimate of 500 billion yen. Analysts predict an average profit of 676 billion yen for the fiscal year. Honda expects total sales for the year to reach 24.15 trillion yen, exceeding previous expectations and analysts forecasts of 23.2 trillion yen. Honda anticipates a rebound in profits for this fiscal year, primarily relying on currency advantages and demand in the U.S. market. Meanwhile, the company is working to restructure its underperforming automotive business. Honda recorded an impairment loss of 2.5 trillion yen in March, leading to its first annual loss since its establishment in 1948. Honda's previously uncompetitive model lineup has made it difficult to compete with leading companies during the automotive industry's shift towards battery electric vehicles equipped with advanced technologies.