Honda Motor Co. reported a 76% drop in fourth-quarter operating profit on Wednesday, missing analyst expectations by a wide margin and prompting a sharply downgraded outlook for the fiscal year ahead.

Honda's profit for the fiscal year through March slipped 24.5 per cent from the previous year, as its vehicle sales in China dropped, and the Japanese automaker warned Tuesday that President Donald Trump's tariffs will worsen its earnings.

Honda HMC reported earnings of 18 cents per share for fourth-quarter fiscal 2025, missing the Zacks Consensus Estimate of 72 cents. The bottom line also declined from the year-ago profit of 99 cents per share.

Honda said its plan to build an EV supply chain in Alliston, Ont. — which was first announced in April 2024 — would be paused for about two years, due to uncertainty caused by tariffs.

Honda Canada is postponing a $15-billion electric vehicle investment project in Ontario, including a proposed EV battery plant and retooled vehicle assembly facility.