HMC

KOBE, Japan, Oct. 23, 2026 (GLOBE NEWSWIRE) -- Micware Co., Ltd. (Nasdaq: MWC) (the "Company" or "Micware"), a Japan-based provider of in-vehicle infotainment, navigation, and location-based software for automakers including Honda and Toyota, today announced that it will release its financial results for the six months ended August 31, 2026, on Tuesday, November 10, 2026, U.S. Eastern Time. The Company will host an English-language earnings call on Tuesday, November 10, 2026, at 5:00 p.m. U.S. Eastern Time (Wednesday, November 11, 2026, at 7:00 a.m. Japan Standard Time), followed by a Japanese-language earnings call on Wednesday, November 11, 2026, at 2:00 a.m. U.S. Eastern Time (4:00 p.m. Japan Standard Time). To attend these earnings calls, please use the information below for access. English-language Earnings Call Date: | November 10, 2026 Time: | 5:00 p.m. U.S. Eastern Time (Wednesday, November 11, 2026, at 7:00 a.m. Japan Standard Time) Pre-registration Link: | https://us06web.zoom.us/webinar/register/WN_RXbMwE5YRk-HATpIcrPoIw Japanese-language Earnings Call Date: | November 11, 2026 Time: | 2:00 a.m. U.S. Eastern Time (4:00 p.m. Japan Standard Time) Pre-registration Link: | https://us06web.zoom.us/webinar/register/WN_W_tnqRaERt-RLm88l27l6Q For participation in the earnings calls, pre-registration is required using the links above. Dial-in details and access instructions will be provided upon registration. Please join at least 15 minutes before the commencement of the calls to ensure timely participation. For those unable to participate, video replays will be available approximately one hour after the end of each live call. The replay of the English-language earnings call will be available until November 10, 2027 U.S. Eastern Time, while the replay of the Japanese-language earnings call will be available until November 11, 2027 U.S. Eastern Time. An archived webcast of the earnings calls will also be available at the Company's investor relations website at www.ir-micware.com. About Micware Co., Ltd. Micware Co., Ltd. (Nasdaq: MWC) is a Japan-based provider of in-vehicle infotainment, navigation, and location-based software for automakers including Honda and Toyota. These capabilities also form the foundation of its spatial intelligence business. Headquartered in Kobe and led by Founder and CEO Mr. Kenji Narushima since 2003, Micware operates 13 offices across Japan, the United States, Thailand, and Germany. Through a platform-based growth strategy, Micware aims to extend its software into advanced driver assistance and connected services with micAuto-PF, and to link real-world and virtual 3D spaces with DynaPlanet-PF. For more information, visit Micware's IR website at www.ir-micware.com and its LinkedIn page at www.linkedin.com/company/micware-company-limited. Forward-Looking Statements Certain statements in this press release are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy, and financial needs. Investors can find many (but not all) of these statements by the use of words such as "approximates," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may," or other similar expressions in this press release. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. These statements are subject to uncertainties and risks, including, but not limited to, the uncertainties related to market conditions, and other factors discussed in the "Risk Factors" section of the annual report on Form 20-F filed with the U.S. Securities and Exchange Commission (the "SEC"). Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the annual report on Form 20-F and other filings with the SEC. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov. For more information, please contact: Micware Co., Ltd. Investor Relations Department Email: [email protected] Public Relations Email: [email protected] Ascent Investor Relations LLC Tina Xiao Phone: +1-646-932-7242 Email: [email protected]

Winnebago Industries, Inc.WGO is focusing on operational improvements, product innovation and premium brand positioning to strengthen its competitive standing in the recreational vehicle market. The company's motorhome business is showing signs of recovery, while cost-cutting initiatives and improving cash flow could support earnings growth and shareholder returns. Shares of WGO are down 28.8% over the past year against the industry's 21.5% fall. Image Source: Zacks Investment Research Let's examine the factors supporting WGO's growth prospects. Winnebago's Motorhome RV segment is witnessing an operational recovery, supported by cost optimization, disciplined pricing and manufacturing efficiencies. In fiscal 2026, segment revenues rose 8.4% year over year to $1.26 billion, while operating income improved to $33.2 million from a $7.3 million loss. Operating margin expanded 320 basis points (bps) to 2.6%. Despite a 10.4% revenue decline in the fiscal fourth quarter sequentially, operating margin improved 250 bps to 2.4%. Winnebago continues to expand its product portfolio to attract customers across different recreational categories and price points. Recent launches include Grand Design's Lineage motorhomes, Winnebago's ARKA adventure motorhome and Thrive travel trailers, Newmar's Freedom Aire, Grand Design's Foundation destination trailer and Barletta's Sanza pontoon. The company is also investing in advanced construction technologies, including Omega Frame and composite roofing, to improve product differentiation. Winnebago's portfolio of premium brands, including Grand Design, Newmar, Chris-Craft and Barletta, remains a competitive advantage. Its strong brand positioning is reflected in a 14.7% share of RV retail dollar sales compared with a 10.4% unit share for the trailing 12 months through August 2026. Barletta is also gaining traction in the U.S. aluminum pontoon market. Its market share increased to 9.7% in fiscal 2026 from 9% in fiscal 2025 and 4.7% in fiscal 2021. Continued market share gains should support the company's growth prospects. Winnebago is pursuing operational efficiency through manufacturing consolidation, sourcing initiatives and expense control. In fiscal 2027, the company plans to consolidate Towable RV production from two assembly campuses to one and Motorhome RV production from four campuses to three. Operating expenses declined to $284 million in fiscal 2026 from $307.9 million a year ago, reflecting ongoing cost discipline. Management expects fiscal 2027 adjusted earnings of $1.65-$2.25 per share, with the midpoint indicating approximately 9% year-over-year growth. WGO's cash generation also strengthened, with operating cash flow rising 30.9% year over year to $168.7 million in fiscal 2026 and free cash flow increasing to $144.6 million from $89.5 million. Cash and cash equivalents reached $181.4 million. In August 2026, the company raised its quarterly dividend 3% to 36 cents per share and extended its $350 million revolving credit facility through 2031. With its motorhome business gaining momentum, brands strengthening their market positions and cost-saving initiatives taking shape, the company is building a foundation for recovery. Investors should consider buying the stock to benefit from its improving performance and long-term growth potential. Winnebago Industries, Inc. price-consensus-chart | Winnebago Industries, Inc. Quote WGO currently carries Zacks Rank #2 (Buy). Other top-ranked stocks include Honda Motor HMC, Lucid Group, Inc. LCID and Toyota TM. HMC sports a Zacks Rank #1 (Strong Buy), while LCID and TM carry a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here. The Zacks Consensus Estimate for HMC's current-year earnings is pegged at $2.29 per share, indicating a 208.5% year-over-year increase. The estimate for earnings has moved northward over the past 60 days. The Zacks Consensus Estimate for LCID's current-year loss is pegged at $12.15 per share. Its earnings missed the Zacks Consensus Estimate in each of the trailing four quarters, with the average negative earnings surprise being 30.3%. The Zacks Consensus Estimate for TM's current fiscal-year earnings is pegged at $20.3 per share, indicating a 3.5% year-over-year increase. The estimate for earnings has moved down over the past 30 days. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Winnebago Industries, Inc. (WGO) : Free Stock Analysis Report Toyota Motor Corporation (TM) : Free Stock Analysis Report Honda Motor Co., Ltd. (HMC) : Free Stock Analysis Report Lucid Group, Inc. (LCID) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. - GAAP Operating Expenses: $92.4 million in Q3. - GAAP Net Loss: $84.5 million in Q3. - Adjusted EBITDA Loss: $60.7 million in Q3, in line with expectations; full-year 2026 guidance reiterated at $250 million to $275 million. - Capital Expenditures: $4.4 million in Q3, primarily for technology road map and facility spend; full-year 2026 guidance reiterated at $27 million to $37 million. - Customer Billings: $9.8 million in Q3, spanning automotive and non-automotive customers, including first billings from Honda and first billings from the QSS (non-automotive) vertical. - Liquidity: $819.8 million at the end of Q3. - Warning! GuruFocus has detected 2 Warning Sign with QS. - Is QS fairly valued? Test your thesis with our free DCF calculator. Release Date: October 21, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. - Eagle line is fully operational and producing increased volumes of QSC 5 cells, enabling scalable production and customer sampling. - Announced a 100-megawatt hour mass production line with startup targeted for 2028, addressing high-value markets like data centers and defense. - Launched QS power block for AI data centers, demonstrating 4x power density and 5x longer run time than OCP reference specifications. - Recorded first customer billings from Honda agreement and QS AS vertical, indicating progress in automotive and non-automotive commercialization. - Strong safety profile of ceramic solid-state separator, thermally stable well over 300C, validated by customer and third-party testing. - Adjusted EBITDA loss of $60.7 million in Q3, with full-year 2026 guidance of $250-$275 million loss, reflecting ongoing cash burn. - 100-megawatt hour production line requires significant capital, with equipment cost target of less than $100 million, and funding sources not yet secured. - Commercialization timeline for automotive vertical remains uncertain, with QS EV potentially slower than QS AS due to more rigorous requirements. - Dependence on ecosystem partners like Murata, Corning, and Milbauer for mass production, which may introduce execution risks. - Customer billings of $9.8 million in Q3 may vary quarter-to-quarter and are not a substitute for GAAP revenue, indicating early-stage commercialization. Q: Why did QuantumScape decide to announce a 100-megawatt hour mass production line now, and why partner with the Milbauer Group for cell assembly equipment?A: CEO Dr. Siva Sivaram explained that strong customer response to the QS Power Block for AI data centers and QSC 5 shipments to aerospace and defense customerssegments that typically lack their own cell manufacturing capacitycreated the need for a manufacturing solution. The Eagle pilot line and COBRA process have demonstrated scalable production, laying the groundwork for the next scale-up step. Milbauer brings deep automation and cell manufacturing equipment expertise, and combined with material supply partners Murata and Corning, the partnership creates an end-to-end production flow. The new line lets QuantumScape serve high-value markets directly while preserving its capital-light licensing model for automotive. Q: What is the economic arrangement for the 100-megawatt hour linewho owns and pays for itand what does it mean for the capital-light model?A: CEO Dr. Siva Sivaram said site selection is underway and will be announced at the appropriate time, with a capital plan and 2027 financial guidance to come on the Q4 earnings call. Equipment costs are targeted at less than $100 million, and the company is pursuing non-dilutive funding sources including customers, government, ecosystem and licensing partners. The capital-light licensing model remains in place for automotive markets such as Volkswagen PowerCo and Honda, where technology will be transferred so partners can ramp their own production; the new line is directed primarily at high-value applications like aerospace, defense and data centers. Q: What feedback has QuantumScape received from AI data center customers on the QS Power Block, and how does the cell differ from the EV design?A: CEO Dr. Siva Sivaram cited three consistent themes: energy storage's role is shifting from a "spare tire" to a "suspension system" as racks approach 1 megawatt, requiring fundamental innovation; safety is the absolute priority, with architects currently limited to LFP batteries and paying a performance penalty; and customers want volume, which the 100-megawatt line targets for 2028. On cell tuning, he noted the BBU use case differs from automotiveno low-temperature concerns and mostly high-frequency partial cyclingand QSC 5 delivers 4x the power density and 5x longer run time than the OCP reference spec, plus thermal stability validated in customer and third-party lab testing. Q: Where does automotive commercialization stand, including the first Honda billings and the new mobility manufacturer agreement?A: CEO Dr. Siva Sivaram said QuantumScape recorded its first billings from Honda in Q3 following the June agreement, added an agreement with a leading global mobility manufacturer, and has active engagements with two other top 10 OEMs beyond Honda and Volkswagen PowerCo. The company is updating its statement of work with VW PowerCo, having amended the collaboration agreement to eliminate transition payments while working to add milestones tied to technology advancements. He emphasized that the ceramic separator enables an anode-free lithium metal architecture that is chemistry-agnostic, positioning QuantumScape to become the de facto operating system for the solid-state battery industry, with more details at the November 11 symposium in Kyoto. Q: How competitive are the automotive, data center and aerospace verticals, and what advantages does QuantumScape have?A: CEO Dr. Siva Sivaram said the markets differ substantially in customer base. For QS AS advanced solutions covering defense, aerospace and communications, the supply chain is a major asset: QuantumScape is a US-based cell manufacturer whose architecture contains no graphite, eliminating dependence on Chinese suppliers, and it partners only with non-foreign entities of concern. This is increasingly relevant for defense and aerospace customers facing procurement restrictions, and even data center partners are seeking friendly-source supply chains. The better safety profile adds further advantage, on top of intrinsic energy and power performance. Q: How is the timing of commercialization expected to play out across the three verticals, and has it changed over the past year?A: CEO Dr. Siva Sivaram said the 100-megawatt hour line targets start of production in 2028. QS AS may reach market faster than the more rigorous QS EV application, but automotive targets remain unchanged, with the company continuing to work with partners toward the original revenue and commercialization goals. He said the end-to-end mass production solution with trusted ecosystem partners like Murata, Corning and Milbauer gives high confidence in addressing high-value markets quickly. Q: What level of customer interest supports the 100-megawatt hour line decision, and what commercial commitments does QuantumScape want over the next 12 months?A: CEO Dr. Siva Sivaram cited three mutually reinforcing factors: strong feedback and requests for volume from multiple QS AS customers across verticals after Power Block launch and sampling; the Eagle line's demonstrated capability as a foundation for the next scale-up step; and Milbauer's validation of the Eagle line and its ownership stake in the partnership. He added that both defense and data center markets are moving rapidlythe BBU concept was a novelty barely nine months agoso QuantumScape aims to have production started in 2028 with multiple customers signed up beforehand to ensure uptake. Q: Given Volkswagen's restructuring efforts, what are the implications for the PowerCo relationship and how is it evolving?A: CEO Dr. Siva Sivaram said the relationship with PowerCo remains very strong and the overall goal of the collaboration is unchanged, though the partnership is constantly evolving. As noted last quarter, the engagement is moving toward milestone-based payments, and the scope is expanding to cover other applications such as data centers and robotics. Q: What were the key financial results for Q3 2026, and what is the outlook for the full year?A: Chief Accounting Officer Agnes Tan reported GAAP operating expenses of $92.4 million and a GAAP net loss of $84.5 million, with an adjusted EBITDA loss of $60.7 million, in line with expectations. Full-year 2026 adjusted EBITDA loss guidance was reiterated at $250 million to $275 million. Q3 capital expenditures were $4.4 million, with full-year CapEx guidance reiterated at $27 million to $37 million. Customer billings were $9.8 million, reflecting automotive and non-automotive customers, development activities, ecosystem partner payments and cell shipments. The company ended Q3 with $819.8 million in liquidity. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Genuine Parts GPC continues to face operating challenges following its third-quarter 2026 earnings release, as elevated expenses and uneven automotive demand weigh on profitability. While the company's Industrial segment remains a growth driver, margin pressures and geopolitical disruptions are limiting its ability to translate sales gains into stronger earnings. The planned separation of its Automotive and Industrial businesses could also introduce high costs and execution risks. Shares of GPC are down 6.4% over the past year compared with the industry's 11.6% fall. Image Source: Zacks Investment Research Let's examine the key factors weighing on GPC stock. Genuine Parts continues to face elevated health care, freight, rent and wage expenses across its markets. Although pricing actions and sourcing efficiencies have helped offset product cost inflation, operating expenses continue to limit profitability. In the third quarter of 2026, adjusted gross margin expanded 70 basis points (bps) to 38.1%, but adjusted EBITDA margin remained flat at 8.4%, indicating that higher expenses absorbed the gross margin improvement. The pressure was more evident in the Automotive segment. North America Automotive EBITDA declined 2.9%, while its EBITDA margin contracted 40 bps to 7.6%. Despite restructuring savings, persistent supplier cost increases and elevated freight and fuel expenses could continue to constrain margin expansion through the end of 2026. The Iran conflict has increased operating expenses and weakened automotive demand across key markets. Management estimated the conflict reduced third-quarter 2026 EBITDA by $16 million, or 9 cents per share, while lowering EBITDA margin by approximately 20 bps. The cost burden has continued to accumulate. Fuel and diesel prices increased approximately 30% and 50%, respectively, year over year, while incremental conflict-related operating expenses reached around $35 million in the first nine months of 2026. Management expects an additional $15-$25 million in related costs in the fourth quarter. Continued geopolitical uncertainty could further increase energy, freight and supplier expenses while weighing on consumer spending. GPC's Automotive business faces an uncertain demand environment as consumers remain sensitive to fuel prices and weakening confidence. North America Automotive comparable sales growth slowed to 1.7% in the third quarter of 2026 from 2.6% in the second quarter. U.S. comparable sales increased just 1.8%, while NAPA retail comparable sales declined approximately 3%. International markets also recorded modest growth, with comparable sales increasing 1.3% in Canada, 1.1% in Europe and 0.7% in Australasia. However, these gains have not eliminated concerns about the underlying weakness in automotive retail demand. The combination of slower sales momentum and mounting operating expenses could further pressure Automotive profitability. Continued weakness in retail sales could make it harder for GPC to achieve a meaningful recovery in its Automotive business. Genuine Parts remains on track to separate its Automotive and Industrial businesses in the first quarter of 2027. Although the move is intended to sharpen strategic focus and allow each business to pursue distinct growth strategies, the transition is expected to bring substantial additional costs. Following the separation, the Automotive business is expected to absorb roughly $250 million in additional corporate costs and dis-synergies, while Industrial is expected to incur approximately $100 million. Separation-related costs totaled $21 million before taxes in the third quarter of 2026, bringing the nine-month total to roughly $55 million. These expenses primarily reflect advisory services, professional fees and other transition activities. The separation will also require distinct corporate functions, technology systems and capital structures, increasing execution requirements. Given persistent cost inflation, uneven automotive demand and rising separation expenses, Genuine Parts faces significant challenges to improving profitability. These headwinds, coupled with a narrower earnings outlook, could weigh on future performance, making selling GPC stock the prudent approach. Genuine Parts Company price-consensus-chart | Genuine Parts Company Quote GPC currently carries Zacks Rank #4 (Sell). Some better-ranked stocks in the Auto space are Honda Motor HMC, Lucid Group, Inc. LCID and Toyota TM. HMC sports a Zacks Rank #1 (Strong Buy), while LCID and TM carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here. The Zacks Consensus Estimate for HMC's current-year earnings is pegged at $2.29 per share, indicating a 208.5% year-over-year increase. The estimate for earnings has moved northward over the past 60 days. The Zacks Consensus Estimate for LCID's current-year loss is pegged at $12.15 per share, 0.5% wider year over year. Its earnings missed the Zacks Consensus Estimate in each of the trailing four quarters, with the average negative earnings surprise being 30.3%. The Zacks Consensus Estimate for TM's current fiscal-year earnings is pegged at $20.3 per share, indicating a 3.5% year-over-year increase. The estimate for earnings has moved down over the past 30 days. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Genuine Parts Company (GPC) : Free Stock Analysis Report Toyota Motor Corporation (TM) : Free Stock Analysis Report Honda Motor Co., Ltd. (HMC) : Free Stock Analysis Report Lucid Group, Inc. (LCID) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

- Interested in QuantumScape Corporation? Here are five stocks we like better. - QuantumScape plans a 100-MWh production line targeting startup production in 2028, focused primarily on data centers, aerospace, defense and other advanced applications. Equipment costs are expected to be under $100 million, with the company pursuing non-dilutive funding. - The company is expanding its data-center and advanced-solutions business through its QS PowerBlock system, which it says offers higher power density and runtime than a relevant industry reference design. QuantumScape also reported initial customer billings and shipments in defense, aviation and telecommunications. - Automotive development continues with Honda, Volkswagen PowerCo and other global manufacturers, while third-quarter results showed $9.8 million in customer billings, an $84.5 million GAAP net loss and $819.8 million in liquidity. - Why Franchise Models Are Winning the Restaurant Stock Divide QuantumScape (NYSE:QS) said it is expanding its manufacturing plans after bringing its Eagle Line pilot facility into operation, announcing a planned 100-megawatt-hour mass-production line intended to serve data center, aerospace, defense and other advanced applications. Chief Executive Officer Dr. Siva Sivaram said startup production from the new line is targeted for 2028. The company also announced an ecosystem partnership with Muehlbauer Group, which will provide cell-assembly equipment for the planned facility. → The AI Sell-Off Continues—These 3 Stocks Keep Raising Guidance Anyway - Is Wingstop's Growth Story Losing Steam? QuantumScape said the Eagle Line, inaugurated in February, has become central to its customer-sampling efforts and has enabled increased customer billings. Sivaram said the pilot line, along with the company's Cobra production process, has demonstrated scalable production and provided the confidence to pursue a larger manufacturing step. The proposed 100-MWh line is expected to primarily support QuantumScape's data-center and advanced-solutions businesses, rather than automotive production. Sivaram said the company intends to retain its capital-light licensing strategy for automotive customers with their own manufacturing capacity, including Volkswagen PowerCo and Honda. → Tesla's Roadster Reveal Hints at 2 Much Bigger Moves - MarketBeat Week in Review – 06/29 - 07/03 "This line lets us serve high-value markets directly while keeping our CapEx-light licensing model for automotive," Sivaram said. QuantumScape is targeting equipment costs of less than $100 million for the production line, according to Sivaram. The company said it is pursuing non-dilutive funding from customers, government sources, ecosystem partners and licensing partners. It expects to provide a capital plan and 2027 financial guidance on its fourth-quarter earnings call. → Luxury's Middle Market Is Cracking—These 3 Stocks Could Win The company has not selected a site for the facility and said it would disclose the location at an appropriate time. Sivaram described the equipment-design, construction and installation process as the project's longest-lead-time component. QuantumScape said partnerships with Murata, Corning and Muehlbauer now span the company's production flow, from materials and separators through cell assembly. Management said the partnerships are intended to support an end-to-end manufacturing solution as the company works toward eventual gigawatt-hour-scale production. During the quarter, QuantumScape introduced its QS PowerBlock reference design for in-rack energy storage at AI data centers. The company launched the product alongside the Open Compute Project Global Summit on Oct. 8. The company said testing of the QS PowerBlock showed four times the power density and five times the runtime of the relevant Open Compute Project reference specification. Sivaram said the product is designed around the QSE-5 cell and is intended for data-center architectures where racks are expected to require increasing amounts of power. Management emphasized battery safety as a key part of its pitch to data-center customers. QuantumScape said conventional lithium-ion batteries, including lithium iron phosphate batteries, are not thermally stable above approximately 180 degrees Celsius, while its solid-state batteries have demonstrated thermal stability above 300 degrees Celsius in customer and third-party laboratory testing. Sivaram said customers have expressed interest in obtaining QS PowerBlock products in volume, which helped support the decision to move forward with the 100-MWh line. He said the 2028 production target aligns with the data-center industry's expected timeline. QuantumScape's QS Advanced Solutions, or QSAS, business is pursuing applications in defense, aerospace, medical devices, consumer electronics and telecommunications. The company said it shipped QSE-5 samples to customers in the defense, aviation and telecommunications sectors and recorded its first QSAS customer billing in the third quarter. Management said QSAS could address a total market of up to $75 billion by 2030. Sivaram also cited the company's U.S.-based manufacturing and supply-chain design, including the absence of graphite in its architecture, as differentiators for defense and aerospace applications. QuantumScape said automotive cell-development engagement remained robust across global customers. In the third quarter, it recorded its first customer billings under the Honda agreement announced in June. That agreement covers joint development work to integrate QuantumScape's solid-state battery platform into Honda's technology roadmap. The company also signed an agreement with an unnamed global mobility manufacturer whose applications and requirements are aligned with automotive customers. Sivaram said active customer engagements beyond Honda and Volkswagen PowerCo include two other top-10 original equipment manufacturers. QuantumScape is updating its statement of work with Volkswagen PowerCo and said it amended its collaboration agreement to eliminate transition payments while working to add milestones tied to technology advances. Sivaram said the PowerCo relationship remains strong and is evolving toward milestone-based payments, with potential expansion to applications including data centers and robotics. The company plans to provide further details on its next-generation technology platform and automotive collaboration model at its Solid-State Battery Symposium on Nov. 11 in Kyoto, Japan. Chief Accounting Officer Agnes Tan reported third-quarter GAAP operating expenses of $92.4 million and a GAAP net loss of $84.5 million. Adjusted EBITDA loss was $60.7 million, which Tan said was in line with expectations. - Customer billings: $9.8 million - Capital expenditures: $4.4 million - Liquidity at quarter-end: $819.8 million - Full-year 2026 adjusted EBITDA loss guidance: $250 million to $275 million - Full-year 2026 capital-expenditure guidance: $27 million to $37 million Tan said customer billings included automotive and non-automotive customers, development activity, ecosystem-partner payments and cell shipments. She cautioned that customer billings are an operational metric rather than a substitute for revenue reported under U.S. GAAP and may fluctuate between quarters. QuantumScape Corporation is a development-stage battery technology company focused on solid-state lithium-metal batteries. Its technology is designed to replace the liquid or gel electrolytes used in conventional lithium-ion batteries with a solid-state separator, with the goal of improving energy density, charging performance, safety and operating range for electric vehicles. The company is developing prototype battery cells and related manufacturing processes for automotive applications. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "What QuantumScape (QS) Said on Its Q3 Earnings Call" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.

Thursday, October 15, 2026 The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features a real-time update on the ongoing Q3 eanings season, in addition to updated analyst reports on 16 major stocks, including NVIDIA Corporation (NVDA), Philip Morris International (PM) and Home Depot (HD), as well as a micro-cap stock CPI Aerostructures, Inc. (CVU). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today. You can see all of today's research reports here >>> Q3 Earnings Season Scorecard Including this morning's results from PN Financial, US Bancorp and four other S&P 500 members, we now have Q3 results from 38 S&P 500 members. Total earnings for these 38 companies are up +48.7% from the same period last year on +14.4% higher revenues, with 84.2% beating EPS estimates and 68.4% beating revenue estimates. To put the results from these 38 index members in a historical context, the EPS beats percentage of 84.2% compares to 86.8% from this same group of companies in the preceding period and the 82.7% average over the preceding 20-quarter period. The revenue beats percentage of 68.4% compares to 76.3% in 2026 Q2, 84.2% in 2026 Q1 and the 20-quarter average of 70.6%. The Q3 earnings growth rate of +48.7% has been boosted by the outsized numbers from Micron Technology. Excluding the Micron contribution, Q3 earnings for the remaining 37 index members drops to +10.6% from +48.7%, which compares to +24.9% in the preceding period and +13.3% in 2026 Q1. It is still early in the Q3 reporting cycle, but the Q3 reported growth rates and beats percentages are tracking modestly below what we had seen from this same group of companies in other recent peirods.  Ahead of Wall Stree The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market's open and attempts to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning. You can read today's AWS here >>> PPI, Retail Sales Jump, Claims Stay Resilient Today's Featured Research Reports Shares of NVIDIA have gained +22.1% over the past year against the Zacks Semiconductor - General industry's gain of +28.3%. The company continues to benefit from broad demand for accelerated computing as customers build AI factories across hyperscalers, AI clouds, enterprises and sovereign buyers.  Blackwell Ultra is supporting growth while Vera Rubin broadens the platform across GPUs, CPUs, networking and software. Customer diversification, rising system content and usage-linked opportunities extend the runway, while cash generation supports capital returns.  China remains largely closed to data center compute, and NVIDIA is taking on larger supply commitments, customer credit support and long-dated guarantees. Customer concentration, rising operating investment and competition add uncertainty. Even so, platform leadership, product cadence and expanding AI infrastructure demand give the positive drivers greater weight in the current risk-reward profile. (You can read the full research report on NVIDIA here >>>) Philip Morris' shares have outperformed the Zacks Tobacco industry over the past year (+36.4% vs. +28.3%). The company has been benefiting from strong pricing power, favorable product mix and steady growth in its smoke-free portfolio. IQOS, ZYN and VEEV continue to support the company's transition across key markets, with smoke-free products contributing about 42% of second-quarter 2026 revenues.  In the first half, net revenues rose 9.8% and adjusted EPS increased 15.6%, while productivity savings helped offset higher investments in innovation, marketing and commercial initiatives. However, cigarette volumes remain in structural decline, with full-year shipments expected to fall 2-3%.  The U.S. business also remains under pressure from weaker first-half results, elevated spending and execution risks related to ZYN and IQOS ILUMA. Regulatory restrictions on tobacco products remain another key concern for long-term demand and profitability. (You can read the full research report on Philip Morris here >>>) Shares of Home Depot have underperformed the Zacks Retail - Home Furnishings industry over the past year (-21.6% vs. -20.7%). The company's larger discretionary projects remain muted, and demand can swing with weather-driven repair activity. Management has reaffirmed its fiscal 2026 outlook for modest comps growth, reflecting housing affordability and low turnover. Nevertheless, Home Depot continues to invest in an integrated retail model, digital investments, product innovations and Pro-focused initiatives. Seamless connectivity across the stores, online platforms and supply chain is enhancing customer experience and driving higher engagement.  The Pro segment continues to outperform, supported by targeted investments and expanding ecosystem capabilities. SRS remains a key Pro lever, with the Mingledorff's deal adding an HVAC vertical and extending cross-sell opportunities. Cash generation supports reinvestment and dividends. The Zacks analyst expect sales to rise 4% year over year in fiscal 2026. (You can read the full research report on Home Depot here >>>) CPI Aerostructures' shares have outperformed the Zacks Aerospace - Defense Equipment industry over the past year (+104.9% vs. -11.5%).  This microcap company with market capitalization of $66.25 million, have seen first-half 2026 revenues rose 14.3%, while gross margin improved to 23.9% from 7.6%. Its $533.1 million backlog and rising funded orders enhance revenue visibility. New airborne pod awards and T-38 sustainment contracts support growth through 2028.  Military subcontract revenues climbed 27.2%, reflecting strong electronic warfare program activity. Defense modernization, fleet readiness requirements and rising military spending offer additional tailwinds. Established relationships with RTX, L3Harris and other defense contractors strengthen opportunities.  However, tight liquidity, elevated debt, negative operating cash flow, rising receivables, customer concentration and the unresolved A-10 dispute pose risks. Weakness in commercial and prime government revenues adds pressure. The stock trades at 1.16X EV/sales, below sector levels but above its five-year median. (You can read the full research report on CPI Aerostructures here >>>) Other noteworthy reports we are featuring today include Suncor Energy Inc. (SU), Honda Motor Co., Ltd. (HMC) and Flex Ltd. (FLEX). Director of Research Sheraz Mian Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read NVIDIA's (NVDA) Data Center Biz Gains From Growing Adoption of GPUs Philip Morris (PM) Benefits from Strong Smoke-free Revenues Home Depot's (HD) Focus on Pro Customers Fuels Growth Prospects Featured Reports FLEX Thrives on Cloud, Data Center Demand Amid Macro Headwinds Per the Zacks analyst, Flex is aggressively moving into the high-growth data center market with strength across its cloud and power portfolios. Weak macro backdrop and evolving trade policy are woes. Capital Investments and Energy Storage Aid Consolidated Edison (ED) Per the Zacks analyst, Consolidated Edison will benefit from its capital investments aimed at modernizing infrastructure. Focus on energy storage expansion will support its performance. Robust Healthcare Revenue Aids STERIS (STE) Amid Macro Woes The Zacks Analyst is upbeat about STERIS's robust growth in the Healthcare business segment. Yet, macroeconomic woes in the form of escalating operating expenses dent profit. Acquisitions, Loan Demand Aid Valley National (VLY), CRE Exposure Ails Per the Zacks analyst, the Bluevine and Providence buyouts, solid loan demand, changing deposit mix and balance sheet strength aid Valley National, while CRE exposure and elevated expenses are risks. UiPath (PATH) Gains From Automation Adoption Amid Monetization Risks Per the Zacks analyst, UiPath benefits from growing end-to-end automation adoption, while uncertain agentic monetization and stiff competition remain key concerns. Solid Premium Office Demand Aids SL Green (SLG), Debt Burden Looms Per the Zacks analyst, SL Green benefits from strong Manhattan office demand, rising rents and increasing occupancy. However, elevated debt, refinancing needs and rate exposure pose significant risks. Growth Investments Aid Boise Cascade (BCC) Amid Housing Softness Per the Zacks analyst, growth investments, vertically integrated business model and the James Hardie agreement are benefiting Boise Cascade amid high operating costs and slow housing market. New Upgrades Suncor (SU) Gains From Strong Cash Flow and Capital Efficiency The Zacks analyst believes that Suncor Energy's integrated model, strong cash generation, global market reach and improved capital efficiency support sustained growth and shareholder returns. Honda (HMC) Leverages Hybrid Strategy to Lift Growth and Profitability Per the Zacks analyst, Honda is strengthening its hybrid strategy to sustain growth and profitability, using production flexibility and an expanded lineup to capitalize on favorable HEV demand. Solid Capital Position & Premium Growth Aid Assurant (AIZ) The Zacks analyst is optimistic about solid Global Lifestyle segment of Assurant, which will drive improvement in earned premiums and fees. Solid capital position supports capital deployment. New Downgrades Heavy Dependence on Jakafi Pipeline Setbacks Weigh on Incyte (INCY) Per the Zacks analyst, Incyte's heavy reliance on lead drug Jakafi leaves the company vulnerable to competitive and generic pressures. Pipeline setbacks are a headwind too. BellRing Brands (BRBR) Battles Rising Costs & Margin Headwinds Per the Zacks analyst, BellRing Brands is facing elevated cost inflation. In Q3 fiscal 2026, adjusted gross margin fell 740 basis points due to higher costs and inventory-related pressures. Cloudflare (NET) Grapples With Rising Infrastructure Costs Per the Zacks analyst, higher network, bandwidth and third-party technology costs are pressuring Cloudflare's gross margin despite strong revenue growth. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Philip Morris International Inc. (PM) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report The Home Depot, Inc. (HD) : Free Stock Analysis Report CPI Aerostructures, Inc. (CVU) : Free Stock Analysis Report Honda Motor Co., Ltd. (HMC) : Free Stock Analysis Report Suncor Energy Inc. (SU) : Free Stock Analysis Report Flex Ltd. (FLEX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

- Clark Howard warned Ford and GM deliberately restrict supply to charge more, and GM's Q3 results confirmed unit sales fell 6% in a healthy 16-million-unit market. - GM sold fewer vehicles yet boosted adjusted EBIT 22% to $4.3 billion, keeping incentives between 1.5 and 2 points below industry average and raising per-unit pickup profit over 25% since 2020. - A $13,000 sticker gap between a $50,000 domestic SUV and a $37,000 rival grows to $15,445 total after financing at 7% APR over 60 months. - Read More: Learn 7 ways to generate income with a $1,000,000+ portfolio (sponsor) On his September 21 podcast, consumer advocate Clark Howard accused Ford (NYSE:F) and General Motors (NYSE:GM) of shrinking supply on purpose: "Ford and GM had both made a decision along with some of the European brands, that they would rather sell a lot less metal. They call it metal. A lot fewer cars for a lot more money than get market share." GM reported its sales ten days later. According to CNBC's coverage of GM's third-quarter sales, unit sales fell 6% from a year earlier and are down 6% year to date. In the same report, GM said the industry sales rate stayed strong in the upper 16 million range. So GM is selling fewer vehicles in a healthy market. This matters to anyone walking into a showroom. Howard said the average American-brand vehicle now sells for 50 plus thousand, while Subaru and Honda (NYSE:HMC) average 37 grand. If you expect the market to hand you a discount, you will overpay. Howard is right, and GM's quarterly results show it. In the first quarter of 2026, North American wholesale volume fell to 793,000 units from 827,000. Even so, adjusted EBIT rose 22% to $4.3 billion. Fewer trucks left the factory, and GM made more money on each one. If you've saved over $1,000,000, this guide is for you. The last thing you want in retirement is to run out of money, you want your money to generate lasting income while you enjoy your life. Now you can learn the strategies wealthy retirees use to fund their retirement with The Definitive Guide to Retirement Income from Fisher Investments. Download the guide today! (sponsor) Management described the strategy itself on its July call. GM said its incentives run one and a half to two points below the industry average. It also said per-unit profit on full-size pickups is up over 25% since 2020. To be fair, part of the third-quarter fall has another explanation. EV sales dropped more than 50%. GM blames the EV tax credit that expired in September 2025, which pulled demand forward, plus discontinued models like the Chevrolet Malibu. Gas-powered sales were up fractionally. Pricing discipline is still stated policy, though. It added 600 million in first-half profit. Shareholders got the "more money" half of the deal. GM's quarterly dividend went from $0.12 to $0.15, then to $0.18. That's a 50% increase. Even so, shares sit near $79, down about 8% over the past month. Here's an example. Say you compare a $50,000 domestic SUV with a $37,000 rival. The sticker gap is $13,000. Assume both are financed over 60 months at an sample 7% APR. The pricier vehicle costs about $990 a month, compared with about $733. That's an extra $257 every month. You'd pay roughly $9,404 in interest on the first loan and $6,959 on the second. Over the full loan, the real gap is about $15,445, and interest grows it every month. Small incentives add to the gap. Two points of MSRP on a $50,000 vehicle is $1,000 in discounts you'd likely see at a brand that discounts like the rest of the industry. The variable that matters most is your interest rate. On that same $13,000 premium, a 1.9% loan makes the total gap about $13,638. A 10% loan drives it to about $16,573. Borrowers with excellent credit pay roughly the sticker difference. Borrowers with weaker credit pay the premium plus thousands more in interest. If your rate is high, buying from an automaker that limits supply costs you the most. - Compare across brands in the same category. Howard's list includes Buick at 36 grand and Kia at 38. Price at least two of them against any vehicle you're considering, and compare total loan cost instead of the monthly payment. - Get a preapproved rate before you visit a dealer. Enter that rate into a loan calculator for each vehicle. Seeing the total cost over five years makes the true price gap clear. - Skip the end-of-model clearance plan for trucks. New Silverado and Sierra pickups arrive in December, but GM says it hasn't seen the "typical heavy discounting at the end of the cycle." Don't build your budget around a markdown that may never come. - Negotiate the out-the-door price by email. Ask several dealers for a written total that includes fees. This avoids the showroom pressure tactics Howard has criticized for years, and it makes dealers compete on the one number that matters. GM decided to sell fewer vehicles at higher prices, so the savings come from comparing total costs before you sign. If you've saved over $1,000,000, this guide is for you. The last thing you want in retirement is to run out of money, you want your money to generate lasting income while you enjoy your life. Now you can learn the strategies wealthy retirees use to fund their retirement with The Definitive Guide to Retirement Income from Fisher Investments. Download the guide today! (sponsor) Contact [email protected] for any questions or corrections.

Wall Street ended lower yesterday as a sharp climb in bond yields set a cautious tone for the week. Both the benchmark 10-year Treasury and the 30-year bond are hovering near their highest levels in several years, as traders price in the possibility of further Fed rate hikes on the back of stubborn inflation. Investors will be hunting for fresh clues on where rates are headed, with three major data releases landing this week. Inflation comes first, as August's PCE reading, the gauge the Fed leans on most, is due tomorrow. Factory activity numbers follow on Thursday, and the week closes with September's employment report on Friday. Against this backdrop, a value-focused approach makes sense. Buying strong businesses at prices below what they are actually worth builds in a cushion, which can help a portfolio hold up when markets swing. Honda Motor HMC, National Energy Services Reunited NESR, Ternium S.A. TX, Avnet, Inc. AVT and Star Bulk Carriers SBLK are a few value stocks with high earnings yield. Earnings yield is an interesting ratio that you can consider for picking attractively valued stocks. This metric, expressed in percentage, is calculated as annual earnings per share (EPS) divided by market price. It measures the anticipated return from earnings for each dollar invested in a stock today. While comparing stocks, if other factors are similar, the ones with higher earnings yield are considered undervalued, while those with lower earnings yield are seen as overpriced. While earnings yield is nothing but the reciprocal of the P/E ratio, it also facilitates the comparison of stocks with fixed-income securities. Investors often compare the earnings yield of a stock to the prevailing interest rates, such as the current 10-year Treasury yield, to get a sense of the return on investment it offers compared to virtually risk-free returns. If the yield on a stock is lower than the 10-year Treasury yield, it would be considered overvalued relative to bonds. Conversely, if the yield on the stock is higher, it would be considered undervalued. We have set an Earnings Yield greater than 10% as our primary screening criterion but it alone cannot be used for picking stocks that have the potential to generate solid returns. So, we have added the following parameters to the screen: Estimated EPS growth for the next 12 months greater than or equal to the S&P 500: This metric compares the 12-month forward EPS estimate with the 12-month actual EPS. Average Daily Volume (20 Day) greater than or equal to 100,000: High trading volume implies that a stock has adequate liquidity. Current Price greater than or equal to $5. Buy-Rated Stocks: Stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) have been known to outperform peers in any type of market environment. You can see the complete list of today's Zacks #1 Rank stocks here. We have highlighted five of the 32 stocks that qualified the screen: Honda is a leading manufacturer of automobiles and the largest producer of motorcycles in the world. The Zacks Consensus Estimate for HMC's fiscal 2027 and 2028 EPS implies year-over-year growth of 204% and 62%, respectively. EPS estimates for the current year and the next have moved up by 54 cents and 42 cents, respectively, over the past 60 days. Honda currently sports a Zacks Rank #1 and has a Value Score of A. National Energy Services is an oilfield services company focused mainly on the Middle East and North Africa. The Zacks Consensus Estimate for NESR's 2026 and 2027 EPS implies year-over-year growth of 129% and 47%, respectively. EPS estimates for the current year and the next have moved up by 12 cents and 14 cents, respectively, over the past 60 days. National Energy Services currently sports a Zacks Rank #1 and has a Value Score of B. Ternium is a leading producer of steel products in Latin America and consolidates the operations of steel companies like Hylsa in Mexico, Siderar in Argentina and Sidor in Venezuela. The Zacks Consensus Estimate for TX's 2026 and 2027 EPS implies year-over-year growth of 201% and 24%, respectively. EPS estimates for the current year and the next have moved up by 47 cents and 24 cents, respectively, over the past 30 days. Ternium currently sports a Zacks Rank #1 and has a Value Score of A. Avnet is one of the world's largest distributors of electronic components and computer products. The Zacks Consensus Estimate for AVT's fiscal 2027 and 2028 EPS implies year-over-year growth of 84% and 7%, respectively. EPS estimates for the current and the next fiscal year have moved up by $3.15 and $4.03, respectively, over the past 60 days. Avnet currently sports a Zacks Rank #1 and has a Value Score of B.  Star Bulk is a global shipping company providing worldwide seaborne transportation solutions in the dry bulk sector. The Zacks Consensus Estimate for SBLK's 2026 sales and EPS implies year-over-year growth of 38% and 367%, respectively. EPS estimates for the current and next year have moved up by 6 cents and 24 cents, respectively, over the past 60 days. Star Bulk currently sports a Zacks Rank #1 and has a Value Score of B.  Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Avnet, Inc. (AVT) : Free Stock Analysis Report Honda Motor Co., Ltd. (HMC) : Free Stock Analysis Report Ternium S.A. (TX) : Free Stock Analysis Report Star Bulk Carriers Corp. (SBLK) : Free Stock Analysis Report National Energy Services Reunited (NESR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Electric vehicles (EVs) have had a rough ride over the last two years in the U.S., with major carmakers like Ford and Honda curtailing EV production, or even canceling some EV models outright. That stands in sharp contrast to the rest of the world, particularly China, where EV carmakers – juiced by government incentives and an opportunity to seize market share from dominant U.S. and European brands – are flourishing after years of early stage struggles. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » One Chinese EV maker, Nio (NYSE:NIO), has been hit particularly hard over the last five years. But its upcoming earnings report could send the stock soaring. Here's why Nio's upcoming earnings report could be a game changer for its shareholders. Image source: The Motley Fool. Although battery-powered electric vehicles (BEVs) are cheaper to operate and maintain than gasoline or hybrid vehicles, there are two important metrics on which they aren't yet competitive with their fossil-fuel-powered brethren: cost and refueling time. BEVs generally cost thousands of dollars more than comparable gas-powered vehicles or hybrids, and powering them to a full charge, even at a high-powered DC fast-charging station, takes 20 to 60 minutes, far longer than filling up at a gas station. Nio has come up with a unique solution for these problems. Instead of including the batteries in the purchase price of a Nio vehicle, Nio allows buyers to subscribe to a "Battery-as-a-Service" feature for a monthly fee. Image source: Getty Images. Paying the fee allows drivers to visit a special Nio "battery swap" station where they swap their depleted battery array for a fully charged one. The process takes only a few minutes, comparable to the time it takes to fill a gas tank. This system allows Nio to advertise a lower sticker price for its vehicles and lock in a recurring revenue stream from the battery-swap service. The only problem for Nio is that, for the battery swap service to be a viable option, it needs to build and maintain a network of battery swap stations, which entails high upfront costs. Nio's shares bottomed out at $3.14/share in early 2025. After it posted a quarterly net profit for the first time, the stock jumped to $6.87/share in April, but has since fallen back to $4.38/share, down 93% from its all-time high. Despite the decline in its share price, Nio's trailing twelve-month (TTM) revenue has skyrocketed this year to $14.3 billion. That's because Nio's vehicle deliveries have been soaring. As of July 31, Nio had delivered 227,057 vehicles, a 68% increase from July 2025. But revenue growth has never been a problem for Nio. Profitability has. Nio's TTM net losses had been moving in the wrong direction for almost a decade, hitting a low point of -$3.4 billion in Q3 2025. Since then, the company has seen remarkable improvement in its bottom line. It even managed to squeak out a net profit of $17.1 million in Q4 2025, only to post a net loss again in Q1 2026. That single quarter of net profit immediately caused a 20% jump in the company's stock price. Over the next several weeks, it continued to climb to a 45.6% gain. But the return to a net loss in Q1 had the exact opposite effect: an immediate plunge in share price, followed by months of declines. If Nio's management announces a net profit in its Q2 earnings report on Tuesday, investors should expect the stock to immediately pop, just like it did in Q4. Before you buy stock in Nio, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nio wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $440,710!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!* Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 29, 2026. John Bromels has positions in Ford Motor Company and Nio. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. NIO's Next Earnings Report on September 1 Could Send the Stock Soaring. Here's Why. was originally published by The Motley Fool

Timothy Holme, the chief technology officer at QuantumScape Corporation (NASDAQ:QS), reported a sale of 75,962 shares of Class A Common Stock on August 18 and August 19, according to an SEC Form 4 filing. Transaction value based on SEC Form 4 weighted average sale price ($5.75); post-transaction value based on the August 19 market close ($5.88). What was the regulatory context for this transaction?The activity was partially non-discretionary, as 34,086 shares were withheld to cover tax obligations following the release of restricted stock units (RSUs), while the remaining sales were scheduled under a Rule 10b5-1 trading plan adopted on June 5, 2025. How does the executive's remaining position compare to the shares sold?Holme's remaining direct position of 1.7 million shares is substantially larger than the 75,962 shares disposed of in this transaction, and the executive also holds 1.2 million indirect derivative securities. What is the current valuation framework for these shares?The stock was priced at $5.88 as of the August 19 market close, a level that reflects a 26% decline over the previous 12 months as of the transaction date. What was the nature of the indirect holdings liquidation?The transaction resulted in the sale of 21,531 shares held indirectly, which represented the entirety of the executive's indirect common stock position at the time of the filing. QuantumScape specializes in the development and commercialization of solid-state lithium-metal battery technology, with primary applications in electric vehicle powertrains and secondary applications across various industrial and consumer markets. The company generates revenue through licensing agreements, development partnerships, and manufacturing collaborations with automotive original equipment manufacturers seeking next-generation battery solutions for electrified vehicle platforms. QuantumScape's primary customers are major automotive manufacturers and tier-one suppliers pursuing advanced battery technologies to enhance electric vehicle range, performance, and cost competitiveness in the global EV market. QuantumScape Corporation operates as a pre-revenue stage technology company focused on commercializing solid-state battery technology for the rapidly expanding electric vehicle sector. Founded in 2010 and headquartered in San Jose, California, the company maintains a lean operational structure with approximately 700 employees dedicated to advancing battery chemistry and manufacturing processes. The company's competitive positioning centers on proprietary solid-state lithium-metal battery architecture, which offers potential advantages in energy density, charging speed, and thermal stability compared to conventional lithium-ion battery technologies. Holme's sale splits into two pieces, and both are explainable without any signal. Roughly 34,000 shares came out through tax withholding on vested RSUs, while the rest sold under a 10b5-1 plan he set up back in June 2025, well before this quarter's news cycle. Plus, the sale wiped out his entire indirect stock position, which sounds bigger than it is since he still holds 1.7 million shares directly and another 1.2 million in derivative securities.More importantly, as CTO, Holme is basically the person actually responsible for the technology QuantumScape just got Honda to bet on. CEO Siva Sivaram described that partnership on the July earnings call as the result of "one of the most rigorous assessments of our technology to date," and that assessment is Holme's engineering, not a marketing claim. The company also reported a GAAP net loss of $98.2 million for the second quarter, narrower than the $114.7 million loss a year earlier, while customer billings hit $21.8 million through midyear, already ahead of all of 2025.For long-term investors, whether QuantumScape's Eagle Line can keep doubling output in the back half of the year, as management has promised, matters far more here than a CTO's scheduled trade. Before you buy stock in QuantumScape, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and QuantumScape wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $429,223!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,318,055!* That performance is why people listen. With a track record of beating the S&P 500 by nearly 5x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 22, 2026. Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. QuantumScape's CTO Sold 75,962 Shares the Same Quarter Honda Bet on His Technology. Here's What to Know was originally published by The Motley Fool

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 2:35 a.m. ET Executive Officer and Chief Financial Officer - Masao Kawaguchi Operating Executive, Head of Accounting and Finance Unit - Sumihiro Takahashi Operator: Thank you for taking time to join us today. We will now begin the announcement of Honda Motor Company Limited Fiscal First Quarter ended June 30, 2026 Financial Results. First, the executives in attendance. Masao Kawaguchi, Executive Officer and CFO. Masao Kawaguchi: This is Kawaguchi. How do you do? Operator: Sumihiro Takahashi, Operating Executive, Head of Accounting and Finance Unit. Sumihiro Takahashi: This is Takahashi speaking. How do you do? Operator: Kawaguchi will outline the fiscal first quarter financial results and FY March 31, 2027 financial forecast, followed by Takahashi giving the details. Mr. Kawaguchi, please. Masao Kawaguchi: At the outset, I would like to express my heartfelt sympathies to all those affected by the earthquake that hit Kumamoto on July 28 and their families. I also sincerely pray for the swift recovery and reconstruction of the affected areas. This slide shows the operating status of our major production sites after the 2026 Kumamoto earthquake. Regarding Kumamoto factory, production is suspended from the evening of July 28 till August 7 for 9 days and recovery efforts are underway. Thanks to these efforts, operations have been partially resumed today. We will continue to work towards full-scale operations. Regarding our automobile production sites, there have been parts shortages resulting from damage sustained by some suppliers. At Saitama factory, operations will be suspended for a total of 6 days until August 19, including the summer break. And at Suzuka factory, operations will be suspended from August 6 tomorrow to the 19th in total of 5 days, including the summer break. We will monitor developments and decide when to resume production and we'll announce at the appropriate timing. Next, fiscal results for the first quarter of the fiscal year ending March 31, 2027. Operating profit for the first quarter was a record high JPY 530.7 billion. No EV-related losses were posted in this first quarter. Motorcycle business, all-time high quarterly operating profit and operating profit margin were achieved, driven by strong global sales, particularly in India and Brazil. Automobile business, despite struggle in China, unit sales steadily increased mainly in North America, resulting in operating profit of JPY 192.1 billion and an operating margin of 5.0%. Regarding consolidated business forecast for the fiscal year ending March 31, 2027, we revised the exchange rate assumption to JPY 155 per U.S. dollar. Operating profit has been revised upward by JPY 150 billion to JPY 650 billion. Uncertainty in the Middle East calls for careful risk assessment regarding unit sales, material costs and other factors. Therefore, these assumptions remain unchanged from the previous forecast. EV-related losses have also been revised to reflect the updated currency assumptions. Excluding EV-related losses, adjusted operating profit is projected at JPY 1.17 trillion, up JPY 170 billion from the previous forecast. Next, financial foundation and shareholder returns. As of the end of the first quarter, net cash of nonfinancial services business stood at JPY 3.3 trillion. We continue to maintain a substantial net cash position and a strong financial profile. Regarding shareholder returns, the forecast for the annual dividend for the fiscal year ending March 31, 2027, remains unchanged from the previous forecast at JPY 70 per share. While targeting DOE 3%, we will strive to provide stable and sustainable dividends. Now the details of the financial results will be given by Mr. Takahashi. Sumihiro Takahashi: Next, I will explain the financial results. At first the first quarter total group unit sales year-on-year was motorcycle sales increased mainly in Asia and other regions, in particular, Brazil to 5,663,000 units. Automobile sales decreased to 786,000 units, led by lower sales in Asia, particularly China. Power Product sales decreased mainly in North America to 752,000 units. Next, the Q1 consolidated financial results year-on-year. Operating profit increased by JPY 286.5 billion to JPY 530.7 billion. Equity method investment profit increased by JPY 18.4 billion to JPY 22.6 billion. Quarterly profit attributable to owners of the parent company increased by JPY 254.2 billion to JPY 450.9 billion. Next, I will explain factors behind changes in adjusted operating profit, excluding EV-related losses year-on-year. Adjusted operating profit was JPY 530.7 billion, up by JPY 164.5 billion year-on-year. Sales impact was negative by JPY 6.1 billion because of the incremental incentives despite our unit sales increase. Price and cost impact, negative by JPY 3.3 billion due to the impact of the soaring material cost. Expenses impact, positive by JPY 6.7 billion. R&D impact is JPY 1.7 billion negative. Foreign currency impact positive by JPY 90.8 billion and the tariff impact was positive by JPY 78.1 billion. Regarding operating profit by business segment. In Motorcycle business, operating profit was JPY 233.9 billion, marking the highest ever operating profit and its margin of the quarter. In Automobile business, operating profit was JPY 192.1 billion. Financial Services business made JPY 105.8 billion and the Power Products and Other businesses ended in JPY 1.1 billion operating loss. For Motorcycle businesses, we achieved JPY 233.9 billion operating profit, up by JPY 44.9 billion year-on-year. Regarding factors for the changes, sales impact was positive by JPY 20.6 billion due to incremental unit sales, mainly in India and Brazil. Price and cost impact, negative by JPY 2.1 billion due to the impact of soaring raw material cost. Expenses impact positive by JPY 1.5 billion. R&D impact JPY 2 billion negative. Foreign currency impact positive by JPY 28.5 billion and the tariff impact was negative by JPY 1.6 billion. For Automobile business, we achieved JPY 192.1 billion adjusted operating profit, up by JPY 99.7 billion year-on-year. Regarding factors for the changes, sales impact was negative by JPY 38.6 billion due to incremental sales incentives, price and cost impact negative by JPY 1.9 billion due to the impact of soaring raw material costs. Expenses impact positive by JPY 5.6 billion. R&D impact JPY 800 million positive. Foreign currency impact positive by JPY 52.2 billion and the tariff impact was positive by JPY 81.6 billion. Regarding cash flow situations, free cash flows of our Non-Financial Services businesses was JPY 128.3 billion. Net cash at the end of the period was JPY 3,331.8 billion and operating cash flows after R&D adjustment was JPY 737.1 billion. Let me move on to the consolidated financial forecast for financial year ending in March 2027. We will keep the unit sales of the group same as the previous forecast, which will be Motorcycles, 22.8 million units; Automobiles, 3.39 million units and the Power Products, 3.65 million units. With regard to the consolidated financial forecast of financial year ending March '27, operating profit will be JPY 650 billion, up by JPY 150 billion over the previous guidance and the profit for the year attributable to owners of the parent will be JPY 400 billion, up by JPY 140 billion. Adjusted operating profit will be JPY 1.170 trillion, up by JPY 170 billion. Assumption foreign currency will be JPY 155 for dollar throughout the year. Regarding factors for changes in expected operating profit as compared to the previous forecast. Adjusted operating profit will increase by JPY 170 billion because of the ForEx assumption modified to JPY 155 for dollar. Regarding factors behind the difference of forecasted operating profit from the results of the previous term, adjusted operating profit will increase by JPY 130.6 billion year-on-year, for which sales impact will be positive by JPY 266.7 billion due to increase of the unit sales of the Motorcycles and Automobiles. Price and cost impact will be negative by JPY 313 billion due to the impact of soaring material costs affected by Middle East and so on, although the cost reduction and the price revisions will work positively for the profit. Expenses impact, negative by JPY 8 billion. R&D impact, JPY 10 billion positive. Foreign currency impact will be positive by JPY 28 billion, reflecting the updated assumptions and the tariff impact will be positive by JPY 147 billion. Forecast of capital expenditures, depreciation and amortization and R&D spending for FYE March 2027 will be expected as in the table. CapEx will reflect additional investments and so on for the acquisition of the factory buildings of a joint battery manufacturing company with LG Energy Solutions in the United States. Last but not least, regarding dividends, annual dividends for FYE March 2027 will be no different from the previous guidance, keeping JPY 70 per share. That is all. Thank you very much for your attention. Operator: [Operator Instructions] The first question is from Asahi Shimbun Newspaper. Miura-san, please. Hideyuki Miura: This is Miura from Asahi Shimbun. I have 2 questions. First, about the EV-related losses. In the first quarter, it is not factored in, but what is the reason? And also, throughout the year, it has increased to JPY 520 billion. But aside from the foreign exchange, are there other factors that affect this result? That's the first question. Unknown Executive: Can you ask your second question, too? Hideyuki Miura: Yes. The second question. It is related to Automobile market. I do understand that you have continuing to have difficulty in China, but can you explain the details? Also, for the full year, I think the forecast is lower than expected. But yet you have not revised your forecast for the full year sales. And also in July, I think that we have entered into extension of maintenance contract. Unknown Executive: Thank you for the question. About the first question, about the EV-related losses. Allow me to answer that question. First, about the EV-related losses. As you know, North America EV strategy has changed. And as a result, in March, we made the announcement at maximum, JPY 2.5 trillion losses will be posted. And this is what we announced. In the previous year, of which already JPY 1.3 trillion has been included. And for this fiscal year, well, at the outset of this fiscal year, when we announced it, we were saying JPY 500 billion. The breakdown is the most of it is the compensation to our suppliers. About our suppliers and the negotiation that we're having vis-a-vis compensation. Currently, we are just -- we've just started communication with the suppliers. And we cannot say at this point in time how much compensation will be required. That is the current status. And therefore, in this first quarter, it's not the case that we can include this in our numbers. So that is the current situation. However, through the various communications, the premise that we set out at the beginning of the fiscal year is not being impacted. So that is understanding. Therefore, this time, in our forecast, again, we have maintained the JPY 500 billion that we have originally forecast. And with the foreign exchange impact, it has been revised to JPY 520 billion. Most of our suppliers are in North America. So there is a big foreign exchange impact. And therefore, the foreign exchange impact has been reflected this time in our forecast. The second question about automotive. Your sound was cut off. You were asking about China. Is that correct? Hideyuki Miura: Yes. It's about China. In the forecast, I think you are forecasting 500,000 units. But looking at the actual sales, I think this is lower than expected. So what is your outlook? And also, excuse me, about an extension of the joint venture in July, can you explain about China? Unknown Executive: First of all, overall, the market itself, the macroeconomics is very weak. And therefore, the overall market is not good. In addition to that, this is due to the oil price increase, I believe. But the breakdown is that ICE, Hybrid, these -- including EV, NEVs, new energy vehicles are seeing the numbers grow at this cost of ICE and Hybrid. So I think that as a result of the oil price increase, this transition is increasing. In the first quarter, just looking at China's ICE and Hybrid, compared to last year, I think that the market has shrunk by about 40%. So Honda has been selling mainly ICE and Hybrid. And that is the reason why we are seeing this impact. In addition to that, Honda, we are in the transition point of a model change. And so this first quarter, the retail unit is slightly more than 80,000. So it's about 50% less than last fiscal year first quarter. As you pointed out, in the initial -- at the outset of this fiscal year, we were saying 480,000 for the whole year. So 80,000 plus is judging from what we said at the outset of this fiscal year behind schedule. Now one of the reasons for this is because as Miura-san has asked, well, GAC. Well, we were originally planning to have the contract terminated in 2028. And amongst the Chinese companies, including the dealers, they were thinking that in 2028, the contract will not be extended. I think there are quite a few who are worried that the joint venture agreement would not be extended. And that was one of the reasons why we saw the sales growth low. But as for this contract, well, we knew that it will expire in 2028. And therefore, our joint venture partner, GAC, we have talked with them about future strategy, trying to come -- make a comeback recovery using local resources and also looking into how we should run the joint venture, we have had in-depth discussion with our partner. And as a result, we have looked into how we can see a recovery in the Chinese market. And we have an idea as to what strategy needs to be taken. And there were quite a few customers and dealers who are worried, but now we've reached this agreement to extend the contract. And this is the reason why we wanted to make this announcement early on, and we were early to extend the contract. That was the reason -- that was the situation. Operator: So next question from [indiscernible] Shimbun Newspaper, Mr [indiscernible] please. Unknown Attendee: [indiscernible] speaking. Can you hear me? Unknown Executive: Yes. Unknown Attendee: I have 2 questions. First one, the sales in China. Going forward, sales might stay low? And do you plan to have additional restructuring or something out of the plant, for instance, in the May update, you mentioned about the Chinese platform or the electronic supplies and so on. And what is the area of progress today? And what is your prospect about the upcoming progress in this regard? And the question 2, the collaboration and negotiation is going on with Nissan. And could you update me about the current status? And then for Honda -- what is the meaning of this collaboration with Nissan for Honda? Unknown Executive: Thank you for your question. Question one about China. If the market still stays, what would happen? That's the question. And then until now, as Honda, we tried to adapt to the Chinese market by having a drastic and speedy adjustment of the production situations. For instance, ICE, we had 1.5 million car, the capacity before, but we had a lot of collaborations for the production adjustments with the 2 joint venture companies, with a high speed. And then in this term in June for the Guangzhou GAC, we decided to stop the line for China. Therefore, we had a capacity of a little less than 1.5 million cars. And then ICE and Hybrid, we now have 700-plus capacity today. That is the current status of the production capacity. And as for the fixed cost, of course, capacity is also supported by the indirect cost labor and so on that we need to streamline the sales force as well. And we have made a lot of progress in all of those areas. And then as I said before, currently, Chinese ICE and Hybrid market is shrinking, and that is more rapidly -- drastically progressing with the shrinkage of the market. Therefore, we do not have the specific measures as yet at the moment, but we will watch out the market situations, and we will keep discussing about the situations with the partner company. And another thing about China, the utilization of the local suppliers. If you look at the Chinese market, STVs and advanced technologies developed very fast. And also we can commonize the parts and so on with the suppliers over there, which make them competitive. And the cars, which make the customers in China feel valuable about the cars that is quite successful over there in their part, then in order for us to deliver the cars to the satisfaction, it is important, critical to make a good use of the local suppliers for us. And for ICE, the local suppliers can be utilized better. And for the next full model change, we are having very good discussions with suppliers for the next model change. And if we can complete those plans we have on the table, we will be able to provide competitive products for China. And for the EVs, we will have more discussions with the partner company trying to utilize their platform and discussions are going at the moment. So we will take advantage of them so that we can improve the lineup of the Chinese market to adapt to the market. This way, we can try to improve the competitiveness of the products for them. And once we are successful there, I mean, it will take another year or so before we become truly successful in reality. And until now, we have to be working very hard. And those initiatives we have at the moment are going on track. And the second question is about alliance with Nissan. In 2024 already, we -- even before the possible integration of the companies, we were talking about possible collaboration, partnership and SEVs, and we were already talking about possible joint programs, SDV joint development, batteries and exchange or sharing of the vehicle platforms and so on. And then the management integration has been abandoned unfortunately. And even that, we revisited the electrification efforts and so on. And in that backdrop, [ STVs ] importance still is there. So in each of those areas, we would like to work together with Nissan so that we can take advantage of the volume we have from each other. And I think this is a very good strategy for both of us. At the moment, we do not have any specific banker I can share. And of course, things going very fast there. And we will try and work hard so that we can give you some input sometime soon. And of course, we'd like to take advantage of the volume we have and there as well so that we can deliver the valuable products for the market. Operator: Next question is from Yomiuri Shimbun Newspaper, Mr. Ukita, please. Rina Ukita: This is Ukita speaking. Can you hear me? About the financial results, you say that you have an all-time high profit. So what is your impression? And I think the foreign exchange impact is large, but the reason for the increase in sales -- unit sales. And about Kumamoto earthquake, I think the impact is being prolonged. Well, all automobile manufacturers are being impacted. And I think that you are targeting for a recovery soon. But can you talk about what would happen if the suspension were to be prolonged? Unknown Executive: Well, about the first quarter, how we see the numbers. Yes, we have an all-time high. So JPY 530 billion, this is a very powerful number, operating profit. And compared to our plan, though we have not disclosed this against that plan, it exceeds our original anticipation. Well, the first quarter, to begin with the case of Honda, the development costs and SG&A, it tends to be that it concentrates in the second half. And the numbers tend to be higher in the first quarter. But in addition to that, I think the foreign exchange impact. Well, currently, there has been a joint U.S. and Japan intervention, but there has been a fluctuation. But the first quarter, the yen was weaker than we expected. And also the raw material cost, this, again, compared to initial estimate, from the beginning of this year, we have been seeing that the steel prices and other raw material costs were going up. So that was that impact and the Middle East outlook is uncertain. We were anticipating that there would be inflation. Therefore, in the beginning, we were thinking that there will be a JPY 360 billion cost increase. So this was factored in. The first quarter in April, May, there were increase in raw material costs. But in June, it started to settle down. And therefore, compared to what we were assuming -- expecting, it did not go up as much as we had thought. And also the unit sales, as you said, the Motorcycle business did well, plus Automobiles, too. As I said, China, we did struggle. But in North America, especially, we saw that our unit sales increased significantly. Well, the gasoline prices are high now. So the market and customers are trying to switch to low fuel consumption, hybrid vehicles. So this was an advantage. In April, May, our share increased to more than 10% for the first time in 5 years. And this also had contributed to the high operating profit in the first quarter. Going forward, the Middle East impact will be seen in various areas. And it is hard for us to predict what will happen. And therefore, do you say -- do you think that this is as much as we can do? Well, there is no onetime factor. But I say we have to look at what the automobile sales could be like in the United States. Well, July was good, but we have to carefully monitor what will be happening in the U.S. market. About the motorcycle unit sales, India. Last year, well, the GST, the tax was cut, and therefore, the market was strong. And this is still continuing now. We are thinking that we wanted to increase the numbers more. But because of the production capacity and others, well, India, we are increasing the capacity, but I think we should be trying to increase it more. But thanks to the India as well as Brazil, the economy is stable. And thanks to that, we have increased our motorcycle production capacity in Brazil, too. So these were the contributors. Now the second question about Kumamoto earthquake. If I may repeat, I would like to express my sympathy to those who have been affected by the mega earthquake. Our motorcycle plant is in Kumamoto. The impact of the earthquake there. We -- at the time of the earthquake, the sprinkler reacted. And so the plant was soaked in water, and we are trying to recover now. But as for the equipment, so far, we don't see that there has been any major damage to the equipment. Currently, within the plant, they are making the confirmation with safety first. And where we can start -- restart, we are restarting. So as soon as possibly, we would like to fully restart operations. About Automobiles, the Saitama and Suzuka factories. Well, unfortunately, our suppliers have been hit by the earthquake, and we are communicating with them right now. And every day, the situation is changing. So we are keeping in close communication to understand when production can restart. But well, there will be a summer break next week. We were originally planning for the summer break. So up until that point in time, we have decided to suspend production. And after the summer break for about 2 days or 3 days rather, we will suspend operation. But during the summer break, up until the 19th, I think we will be getting a lot of information. And based on that, we would like to make the judgment. Operator: Next [indiscernible]. Kosuke-san please. Kosuke Shimizu: Kosuke speaking. Kumamoto earthquakes, its impact. Could you elaborate a little bit more about it? Saitama, Suzuka plant and your subsidiary, Auto Body has a plan to stop. And specifically, what kind of parts or components affected by that? And the suppliers, there are -- well, how many suppliers have been affected causing some troubles with the supplies? And other automotive companies probably starting up again on the 6th of the month. And then there are some time differences of lags in case and what is the situation for you? Could you elaborate on that, please? Unknown Executive: Kosuke-san, thank you for your question. So further information about it, right? And Saitama and Suzuka automotive plants and Auto Body as well. Several parts components, we are at the moment, checking on the situation. Damper is one of those major products affected at the moment. And Astemo group company, they had a plant near the epicenter. And I heard that they had quite a bigger damage on that. And I'm sure that they are focusing on the recovery. And we are talking with each other, trying to find out when they can restart again. And of course, they are working very hard, tracking to restart. And at the moment, we -- it is kind of difficult to get precise information. Same story for Astemo, but they are working very hard on that. And as far as we know at the moment, well, up until now, we decided that we should stop for a while until the recovery could come. And situation is quite dynamic changing every day, and I'm sure they're working very hard. But if there are any updates, we will let you know. Operator: The next question please. [indiscernible]. Unknown Analyst: This is [indiscernible] speaking. Can you hear me? Unknown Executive: Yes. Unknown Analyst: I would like to ask about sales. Mr. Kawaguchi said that North America is doing well. On Page 7, about the factors that are contributing to the operating profit, you say that the product mix is plus. But about incentives, you said that incentives are increasing. So I think there might be an offset there. Incentives, they are mainly in North America, I believe. Well, Hybrid is strong, but I think it might be that incentives are increasing because of the competitive market. Can you explain about the situation in North America? That's one. Plus, the second question is about the domestic situation. Domestic sales is also doing well and focused, you are trying to increase the sales. But what are the factors contributing to this increase? And what is the outlook at the same time? Plus everyone is asking about this about the Kumamoto earthquake, I think this have an impact on sales. At this point in time, can you estimate how much impact it will have on unit sales and what you plan to do to recover, please? Masao Kawaguchi: Yes. Thank you for the question. About North America, as I said, the gasoline prices are soaring. And therefore, the customers are wanting to purchase hybrids. And even gasoline ICE vehicles, I think that because our fuel economy is very good, our models are popular. About incentives compared to last year, well, the models themselves, major models are on the verge of a model change. And this is as originally planned. But from the fourth quarter of last fiscal year, we have increased incentives because of the competition with the competitors. And therefore, we have tried to compete in terms of sales. Well, this is the incentive as planned. Well, last fiscal year, looking back, we had the issue of tariffs. And there was a special demand coming for people rushing in to buy before the tariffs were introduced. So compared to the first quarter, well, you might say that you cannot see the numbers clearly. But just looking at the first quarter alone, even if you look at just the first quarter, you will see and also from the share perspective and incentive perspective, I think that we have had a very solid result in this first quarter. Going forward, I think that the competitors will intensify competition. I mean we will try to bring down the incentives as much as possible. Looking at the July actual numbers, I think we are progressing well. The rest is up to the gasoline price. I think the customers' preference will be impacted by how the gasoline prices hover. So that is something that we have to look into. And about Japan, registered cars -- and well, I think that we have exceeded the previous year. Looking at the market, it's about 107% increase year-on-year. And we are saying 108%. So I think the market average was 107%, whereas we are 108%. Registered cars, especially Super-ONE. This model has been very popular amongst our customers. Of course, there was partially the subsidy that has been explained, but it is equipped with Boost mode, and it's very Honda-like. So the fans appreciate the EV because of its Honda identity, and Vezel and Step Wagon and Freed these models too. We have carried out sales promotion, and this has been very effective. So thanks to that, we are seeing this growth in the domestic market. Unknown Analyst: Now what about the outlook? Masao Kawaguchi: Well, this fiscal year, I think that we will carry out model change, which will be appealing to our customers. And therefore, we want to grow sales through these new models. But the BYD [indiscernible] is a big topic. And if you look at the details, I think the Chinese have been very conscious about the preference of Japanese customers. Price-wise also it's very strategic, and it is a threat. But looking at it from a different perspective, the Japanese EV market is only about 2%. EV is not that popular. So with this new EV player, so to say, it might be that this would have a positive impact on the market. And Honda also, we want to try to introduce different EV models to the Japanese market. And therefore, we want to try to build up the EV market here in Japan. Thank you. Unknown Analyst: About the earthquake impact, how about that? Masao Kawaguchi: Yes. To be very honest, we don't know how much impact it will have on our unit sales at this point in time. That's our honest situation -- position. But I don't think that there will be such a big impact. But at this point in time, I cannot give you any numbers as to how much impact it will have. Operator: Next question from [indiscernible] Mr [ Yamada ], please. Unknown Analyst: Yamada from [indiscernible]. So Motorcycles very good. And you talked about India, Brazil, there utilizing the full capacity of the plant, I heard. And as for the plans, your unit sales plans is kept unchanged. And is this something you anticipated from the beginning? Or is that because of some other reasons behind such as the scheduling and so on, not in confidence, for instance? And another question is the EV-related losses. In the quarter 1, you do not have a full inclusion because of the supplier negotiations still going on. And can we expect some of those losses to be put up in the second quarter onward or little by little in the second half and onwards? What is the plan to handle those losses? Masao Kawaguchi: Thank you for your question. Second question will be addressed by Takahashi-san. And Motorcycles, the net sales is really good. And quarter 1, it is better than our immediate plans, our plans at the moment. And for the second half, at this moment, we do not have major concerns or anything. Maybe one thing could be the regulations in Vietnam. Since last year, we were talking about the restrictions of those riding of the motorcycles in some areas. However, they have a stepwise approach, and therefore, it is not causing a serious effect on that. And the Middle East, no one knows at the moment as to what is the impact to be for the global economy. We have to monitor what's going on and including Motorcycle businesses, we will watch carefully what's going on to update the plans for the sales. Sumihiro Takahashi: EVs. Okay. So EV-related losses, we announced that in March. And from April, we have many negotiations with them talking about what kind of losses are expected from now. And we are still in the middle of the negotiations with them. And in the first quarter period, the negotiation went on continually. So we were not able to put it up in the book. And then we had lots of conversation with many suppliers. And then we will have more information once we get more confidence in those impact by that, we will be able to put them up as we go so much on the first half, so much on the second half and so on. So those will be calculated and factored into those financial results in stepwise approach as we go. So please understand how we do. Operator: The next question, please. NHK, [ Taruno-san ], please. Unknown Analyst: This is Taruno from NHK. Can you hear me? Unknown Executive: Yes. Unknown Analyst: I also have a question in relation to the Kumamoto earthquake. From the 19th onwards, you say that you'll make a judgment looking at the situation. But are you going to think about -- well, are you going to look into alternative sourcing? Or is it up to ASIMO that you will make the judgment? You say that you don't know at what point in time the recovery can take place. So am I correct in understanding that, that is the current situation? About -- the other question is about the foreign exchange. I think one of the major reasons for this good result is the currency. So I believe that the impact is about JPY 10 billion per JPY 1 fluctuation. But over the past 10 years, it has been going down. Yen is weak, and this is a positive for you. But -- so what is your thinking towards foreign exchange? If it's a weaker yen, is it an advantage for you? Or is that not necessarily the case? Can you explain? Unknown Executive: Well, about the Kumamoto impact, we are saying we will resume on the 19th for automotive. But as we said [indiscernible], we have Tier 1, Tier 2, Tier 3 suppliers who have been affected. And we don't know at this point in time what the situation will be. So we don't have a 100% understanding of what the current status is. But as far as the information that we have at hand, we believe that at least until the 19th, we should suspend production. That is our current status. Its the case where we will have a drastic plan to source alternatively. Well, we have to talk with our suppliers about that. So at this point in time, we cannot say that it will be necessary to source from alternative sources or not. Unfortunately, we cannot say anything definitive. But despite this mega earthquake, everyone is making every effort to try to recover. And we also want to keep in close communication with the people there. That is the only thing that we can do at this point in time. About the currency impact and about the sensitivity. Well, in principle, we try to produce where the demand is. Like others, Honda, we are not exporting that much from Japan to the United States. That is the system that we have. Meanwhile, we have a large profit in the U.S. So when we convert this back into Japanese yen on our financial statements, we do see that the numbers are large. And taking all these things into consideration, we think the sensitivity is between JPY 10 billion to JPY 12 billion per yen. And so we say the EV-related losses. But we have a lot of American suppliers and payment to these suppliers because the U.S. denominated compensation will be that the weaker yen will be a disadvantage. For currency, especially in Asia and also in motorcycles, Brazil, well, we are doing this is in different markets. And for example, from India, we are exporting to different destinations. And I think so that also has an impact. So we cannot simply say that once the yen moves from JPY 1, then we have a JPY 10 billion impact. It's not as simple as that. So there are areas which are good and other areas that are bad. So we can offset. And this is what we think is necessary to meet these fluctuations in the currency. That is all. Operator: Because of the time constraints, the next question is going to be the last one. Nikkei Automotive, [indiscernible] san. Unknown Analyst: [indiscernible] speaking. Can you hear me? Unknown Executive: Yes. Unknown Analyst: So semiconductor supplies, DRAM memory, GM and Ford have a long-term supply agreement. And recently, AI provides a lot of demand for the memories and so on. But are there risks for the soaring prices or supply risks? Are there any impact on your businesses? And what is the countermeasures in the future for the semiconductors? Unknown Executive: Thank you for your question. And as you said right now, DRAM and NAND memories. As you know, the cars have meters, ADAS, ECU, display, audios, which require semiconductors. And then cars will be more intelligent going forward and will need more semiconductors going forward. And as you mentioned, needs for the memories actually, the needs from the data centers and other businesses are very strong for this site. And then memory suppliers are trying hard as well to try to keep the good balance of the supply. And probably after the year '27, the efforts will be more effective in terms of the supplies. But for Honda, we try to get stable procurement based on the various initiatives. For instance, for the Automobile legacy memories, let's say, we are quite positive about those legacy type memories, and we would have more dealing with those suppliers of the semiconductor of the legacy ones. And then we would go for the long-term agreement where possible. And we have many initiatives that are trying to get hold on those semiconductor. I cannot give you the details at the moment. However, Honda has a good hands, the measures to get the supplies, and I do not have any problems. We don't have any problems about the procurement of that. However, the cost is soaring, getting more expensive then because of the supply-demand situation, the memory prices are going up. And right from the beginning of the financial year, we gave you the forecast. And then we already factored in the additional JPY 20 billion, JPY 30 billion cost increase because of the supply of the semiconductors, and we already know that. Thank you. Operator: And with this, we would like to conclude our briefing session. As for the materials that we've used, they are posted on our website for you to refer to. Once again, we thank you for your participation. [Statements in English on this transcript were spoken by an interpreter present on the live call.] Before you buy stock in Honda Motor, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Honda Motor wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Honda (HMC) Q1 2027 Earnings Call Transcript was originally published by The Motley Fool