Equity

12 Months Ended

Mar. 31, 2026

(19) Equity

(a) Management of Capital

Honda makes investments in capital and research and development to improve corporate value through growth on a global basis. In order to meet these funding needs, Honda makes capital management through consideration of the balance between financing liabilities and equity.

Financing liabilities and equity of Honda as of March 31, 2025 and 2026 are as follows:


	Yen (millions)
	2025		2026
Financing liabilities	¥	11,451,267	¥	13,479,863
Equity		12,627,822		12,148,072

(b) Common Stock

The Company’s total number of shares authorized and issued for the years ended March 31, 2024, 2025 and 2026 are as follows:


	Shares
	2024		2025		2026
Total number of authorized shares
Balance at end of year
Common shares, no par value		7,086,000,000		7,086,000,000		7,086,000,000
Total number of issued shares
Balance at beginning of year		1,811,428,430		5,280,000,000		5,280,000,000
Changes during the year *		3,468,571,570		—		(747,000,000	)
Balance at end of year		5,280,000,000		5,280,000,000		4,533,000,000

Explanatory notes:

*1	As of the effective date of October 1, 2023, the Company implemented a three-for-one stock split of its common stock to shareholders as of the record date of September 30, 2023.

*2	As of February 29, 2024, the Company cancelled 154,285,290 shares of its treasury stock based on the resolution of the Board of Directors Meeting on February 8, 2024.

*3	As of February 27, 2026, the Company cancelled 747,000,000 shares of its treasury stock based on the resolution of the Board of Directors Meeting on February 10, 2026.

All of the issued shares as of March 31, 2024, 2025 and 2026 have been paid in full.

Capital surplus consists of surplus that is derived from equity transactions and not recorded in common stock, and its primary component is capital reserves. The Companies Act of Japan provides that no less than 50% of the

paid-in

amount or proceeds of issuance of shares shall be incorporated in common stock, and that the remaining shall be incorporated in capital reserves. Capital reserves may be incorporated in common stock upon approval of the General Meeting of Shareholders.

Retained earnings consist of legal reserves and accumulated earnings. The Companies Act of Japan provides that earnings in an amount equal to 10% of cash dividends from retained earnings shall be appropriated as a capital reserve or a legal reserve on the date of distribution of retained earnings until an aggregated amount of capital reserve and legal reserve equals 25% of common stock. Legal reserves may be used upon approval of the General Meeting of Shareholders. Certain foreign consolidated subsidiaries are also required to appropriate their earnings under the laws of respective countries.

Retained earnings as of March 31, 2026 includes ¥293,864 million relating to Honda’s equity in undistributed earnings of affiliates and joint ventures.

(d) Treasury Stock

The total number of the Company’s treasury stock held by Honda as of March 31, 2024, 2025 and 2026 is as follows:


	Shares
	2024		2025		2026
Common shares		451,092,624		933,490,429		640,419,559

Under the Companies Act of Japan, the number of shares and total value of treasury stock acquisition may be determined, upon approval of the General Meeting of Shareholders, within the amount available for distribution. Furthermore, treasury stock may be acquired through market transactions or tender offers in accordance with the articles of incorporation within the conditions set forth in the Companies Act, upon approval of the Board of Directors.

(e) Other Components of Equity

The changes in other components of equity for the years ended March 31, 2024, 2025 and 2026 are as follows:


	Yen (millions)
	Remeasurements of defined benefit plans			Net changes in revaluation of financial assets measured at fair value through other comprehensive income			Exchange differences on translating foreign operations			Cash flow hedge		Total
Balance as of April 1, 2023	¥	—		¥	126,940		¥	1,290,457		¥	—	¥	1,417,397

Adjustment during the year	¥	(18,194	)	¥	(17,924	)	¥	913,456		¥	—	¥	877,338
Reclassification to retained earnings		18,194			(479	)		—			—		17,715

Balance as of March 31, 2024	¥	—		¥	108,537		¥	2,203,913		¥	—	¥	2,312,450

Adjustment during the year	¥	26,874		¥	(19,953	)	¥	(143,608	)	¥	—	¥	(136,687	)
Reclassification to retained earnings		(26,874	)		36,932			—			—		10,058

Balance as of March 31, 2025	¥	—		¥	125,516		¥	2,060,305		¥	—	¥	2,185,821

Adjustment during the year	¥	(14,637	)	¥	134,224		¥	738,648		¥	11,021	¥	869,256
Reclassification to retained earnings		14,637			(22,225	)		—					(7,588	)

Balance as of March 31, 2026	¥	—		¥	237,515		¥	2,798,953		¥	11,021	¥	3,047,489

(f) Other Comprehensive Income

Each component of other comprehensive income and related tax effect including

non-controlling

interests for the years ended March 31, 2024, 2025 and 2026 are as follows:

For the year ended March 31, 2024


	Yen (millions)
	Before-tax			Tax benefit (expense)			Net-of-tax
Items that will not be reclassified to profit or loss:
Remeasurements of defined benefit plans:
Amount incurred during the year	¥	(30,696	)	¥	11,765		¥	(18,931	)

Net changes		(30,696	)		11,765			(18,931	)

Net changes in revaluation of financial assets measured at fair value through other comprehensive income:
Amount incurred during the year		(27,034	)		1,565			(25,469	)

Net changes		(27,034	)		1,565			(25,469	)

Share of other comprehensive income of investments accounted for using the equity method:
Amount incurred during the year		8,976			(676	)		8,300

Net changes		8,976			(676	)		8,300

Items that may be reclassified subsequently to profit or loss:
Net changes in revaluation of financial assets measured at fair value through other comprehensive income:
Amount incurred during the year		149			(83	)		66
Reclassification to profit or loss		(78	)		68			(10	)

Net changes		71			(15	)		56

Exchange differences on translating foreign operations:
Amount incurred during the year		880,235			(2,727	)		877,508
Reclassification to profit or loss		(5,185	)		2,727			(2,458	)

Net changes		875,050			—			875,050

Share of other comprehensive income of investments accounted for using the equity method:
Amount incurred during the year		57,139			(2,850	)		54,289
Reclassification to profit or loss		64			—			64

Net changes		57,203			(2,850	)		54,353

Total other comprehensive income	¥	883,570		¥	9,789		¥	893,359

For the year ended March 31, 2025


	Yen (millions)
	Before-tax			Tax benefit (expense)			Net-of-tax
Items that will not be reclassified to profit or loss:
Remeasurements of defined benefit plans:
Amount incurred during the year	¥	33,986		¥	(7,259	)	¥	26,727

Net changes		33,986			(7,259	)		26,727

Net changes in revaluation of financial assets measured at fair value through other comprehensive income:
Amount incurred during the year		(23,320	)		9,843			(13,477	)

Net changes		(23,320	)		9,843			(13,477	)

Share of other comprehensive income of investments accounted for using the equity method:
Amount incurred during the year		(7,029	)		530			(6,499	)

Net changes		(7,029	)		530			(6,499	)

Items that may be reclassified subsequently to profit or loss:
Net changes in revaluation of financial assets measured at fair value through other comprehensive income:
Amount incurred during the year		582			(128	)		454
Reclassification to profit or loss		(50	)		11			(39	)

Net changes		532			(117	)		415

Exchange differences on translating foreign operations:
Amount incurred during the year		(162,200	)		(2	)		(162,202	)
Reclassification to profit or loss		(125	)		2			(123	)

Net changes		(162,325	)		—			(162,325	)

Share of other comprehensive income of investments accounted for using the equity method:
Amount incurred during the year		20,910			(1,190	)		19,720
Reclassification to profit or loss		(1,319	)		—			(1,319	)

Net changes		19,591			(1,190	)		18,401

Total other comprehensive income	¥	(138,565	)	¥	1,807		¥	(136,758	)

For the year ended March 31, 2026


	Yen (millions)
	Before-tax			Tax benefit (expense)			Net-of-tax
Items that will not be reclassified to profit or loss:
Remeasurements of defined benefit plans:
Amount incurred during the year	¥	(10,970	)	¥	(4,076	)	¥	(15,046	)

Net changes		(10,970	)		(4,076	)		(15,046	)

Net changes in revaluation of financial assets measured at fair value through other comprehensive income:
Amount incurred during the year		179,774			(48,660	)		131,114

Net changes		179,774			(48,660	)		131,114

Share of other comprehensive income of investments accounted for using the equity method:
Amount incurred during the year		3,398			82			3,480

Net changes		3,398			82			3,480

Items that may be reclassified subsequently to profit or loss:
Net changes in revaluation of financial assets measured at fair value through other comprehensive income:
Amount incurred during the year		(215	)		52			(163	)
Reclassification to profit or loss		120			(28	)		92

Net changes		(95	)		24			(71	)

Exchange differences on translating foreign operations:
Amount incurred during the year		702,846			(26	)		702,820
Reclassification to profit or loss		(921	)		26			(895	)

Net changes		701,925			—			701,925

Cash flow hedge
Amount incurred during the year		76,045			(23,574	)		52,471
Reclassification to profit or loss		(60,072	)		18,622			(41,450	)

Net changes		15,973			(4,952	)		11,021

Share of other comprehensive income of investments accounted for using the equity method:
Amount incurred during the year		63,775			171			63,946
Reclassification to profit or loss		(3,999	)		—			(3,999	)

Net changes		59,776			171			59,947

Total other comprehensive income	¥	949,781		¥	(57,411)		¥	892,370

The components of other comprehensive income included in

non-controlling

interests for the years ended March 31, 2024, 2025 and 2026 are as follows:


	Yen (millions)
	2024		2025			2026
Items that will not be reclassified to profit or loss:
Remeasurements of defined benefit plans	¥	186	¥	90		¥	(137	)
Net changes in revaluation of financial assets measured at fair value through other comprehensive income		6		155			27
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translating foreign operations		18,893		(316	)		23,224

Total	¥	19,085	¥	(71	)	¥	23,114

(g) Dividends from Retained Earnings

The Company distributes retained earnings within the available amount calculated in accordance with the Companies Act of Japan. The amount of retained earnings available for distribution is calculated based on the amount of retained earnings recorded in the Company’s

non-consolidated

accounting records prepared in accordance with accounting principles generally accepted in Japan.

The amounts recognized as dividends of retained earnings for the years ended March 31, 2024, 2025 and 2026 are as follows:

1) Dividend payout

For the year ended March 31, 2024


Resolution		The Board of Directors Meeting on May 11, 2023
Type of shares		Common shares
Total amount of dividends (millions of yen)		99,915
Dividend per share (yen)		60.00
Record date		March 31, 2023
Effective date		June 6, 2023

Resolution		The Board of Directors Meeting on November 9, 2023
Type of shares		Common shares
Total amount of dividends (millions of yen)		141,949
Dividend per share (yen)		87.00
Record date		September 30, 2023
Effective date		December 5, 2023

Explanatory note:

*	As of the effective date of October 1, 2023, the Company implemented a three-for-one stock split of its common stock to shareholders as of the record date of September 30, 2023. Dividend per share is an amount prior to the stock split.

For the year ended March 31, 2025


Resolution		The Board of Directors Meeting on May 10, 2024
Type of shares		Common shares
Total amount of dividends (millions of yen)		188,418
Dividend per share (yen)		39.00
Record date		March 31, 2024
Effective date		June 4, 2024

Resolution		The Board of Directors Meeting on November 6, 2024
Type of shares		Common shares
Total amount of dividends (millions of yen)		159,386
Dividend per share (yen)		34.00
Record date		September 30, 2024
Effective date		December 4, 2024

For the year ended March 31, 2026


Resolution		The Board of Directors Meeting on May 13, 2025
Type of shares		Common shares
Total amount of dividends (millions of yen)		147,960
Dividend per share (yen)		34.00
Record date		March 31, 2025
Effective date		June 5, 2025

Resolution		The Board of Directors Meeting on November 7, 2025
Type of shares		Common shares
Total amount of dividends (millions of yen)		136,430
Dividend per share (yen)		35.00
Record date		September 30, 2025
Effective date		December 5, 2025

2) Dividends payable of which record date was in the year ended March 31, 2026, effective after the period


Resolution		The Board of Directors Meeting on May 14, 2026
Type of shares		Common shares
Resource for dividend		Retained earnings
Total amount of dividends (millions of yen)		136,430
Dividend per share (yen)		35.00
Record date		March 31, 2026
Effective date		June 9, 2026