The company raised its full-year operating profit forecast to 700 billion yen from 500 billion yen, and said it expected the yen to trade at an average rate of 140 per dollar, five yen weaker than it had previously estimated.

First-quarter profit halved from a year earlier due in part to the U.S. levies, though the automaker raised its annual earnings forecasts, citing a smaller-than-feared tariff hit.

Japanese automaker Honda Motor Company reported a 1.2% drop in global revenues to JPY 5,340.3 billion in the first quarter of the current fiscal year (FY25), between April and June 2025. The company’s operating profit plunged by almost 50% to JPY 244.