HMC

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. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $403,337!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,946!* Now, it’s worth noting Stock Advisor’s total average return is 958% — a market-crushing outperformance compared to 214% 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 13, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. 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

Honda HMC reported quarterly earnings of $2.18 per share for the first quarter of fiscal 2027, beating the Zacks Consensus Estimate by 90.2%. The bottom line also rose from the year-ago quarter’s earnings of 97 cents per share. Quarterly revenues totaled $38.04 billion, which rose from the year-ago period’s figure of $37 billion. Honda Motor Co., Ltd. price-consensus-eps-surprise-chart | Honda Motor Co., Ltd. Quote For the three-month period, which ended on June 30, 2026, revenues from the Automobile segment increased 9.5% year over year to ¥3.88 trillion ($24.3 billion). The segment registered an operating profit of ¥192 billion ($1.2 billion) against an operating loss of ¥29.6 billion in the corresponding quarter of fiscal 2026. Revenues from the Motorcycle segment came in at around ¥1.14 trillion ($7.15 billion), which increased 19.9% year over year. The unit’s operating profit came in at ¥233.9 billion ($2.1 billion), up 23.8% year over year.Revenues from the Financial Services segment totaled ¥1.03 trillion ($6.44 billion), up 23.3% year over year. The unit’s operating profit totaled ¥105.8 billion ($658.8 million), up 24.5% year over year.Revenues from Power Product and Other Businesses came in at ¥94.5 billion ($592.7 million), up 1.8% year over year. The segment reported an operating loss of ¥1.12 billion (7.03 million) compared with the operating loss of ¥219 million incurred in the same period last year. Consolidated cash and cash equivalents were ¥5.3 trillion ($32.94 billion) as of June 30, 2026. Long-term debt was around ¥8.7 trillion ($54.1 billion) as of June 30, 2026.Honda projects fiscal 2027 consolidated sales volumes from the Motorcycle, Automobile and Power Products segments to be 15.19 million units, 2.82 million units and 3.65 million units, respectively. The forecast implies growth of 3.5% year over year in the Motorcycles unit, while it implies a year-over-year rise of 4% and 1.7% for the Automobile and Power Product unit sales, respectively.For fiscal 2027, Honda forecasts revenues of ¥24.15 trillion, implying a rise of 10.8% year over year. Operating profit is envisioned at ¥650 billion, indicating an improvement from the operating loss of ¥414.3 billion incurred in fiscal 2026. Pretax profit is forecasted to be ¥660 billion, suggesting an improvement from a pretax loss of ¥403 billion incurred in fiscal 2026. The company will pay an interim and year-end dividend of ¥35 per share each in fiscal 2027.HMC currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. General Motors Company GM reported second-quarter 2026 adjusted earnings of $3.57 per share, up 41.3% year over year. The figure beat the Zacks Consensus Estimate of $3.13 by 14.06%. Revenues increased 1.9% to $48.03 billion and surpassed the consensus estimate of $46.56 billion by 3.15%. Strong pricing, lower costs and disciplined incentives supported results. General Motors raised its full-year adjusted EBIT guidance to $14-$16 billion from $13.5-$15.5 billion. Adjusted earnings are now projected at $12-$14 per share, up from the prior range of $11.50-$13.50.Tesla, Inc. TSLA reported second-quarter 2026 adjusted earnings of 33 cents per share, which declined 17.5% year over year. The figure missed the Zacks Consensus Estimate of 50 cents by 34%. Revenues advanced 25.5% to $28.24 billion and surpassed the consensus estimate of $25.81 billion by 9.41%. Tesla expects 2026 capital expenditures to exceed $25 billion and rise further over the next two to three years. Genuine Parts Company GPC reported second-quarter 2026 adjusted earnings of $2.15 per share, beating the Zacks Consensus Estimate of $2.10 by 2.38%. The bottom line increased 2.4% from $2.10 in the year-ago quarter. Revenues rose 6% year over year to $6.54 billion and surpassed the consensus estimate of $6.39 billion by 2.36%. Genuine Parts reaffirmed its 2026 adjusted earnings guidance of $7.50-$8 per share and total sales growth outlook of 3-5.5%. Genuine Parts ended June with $2.3 billion of liquidity, including $559 million in cash. 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 Honda Motor Co., Ltd. (HMC) : Free Stock Analysis Report Genuine Parts Company (GPC) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

TOKYO (AP) — Honda’s profit for the fiscal first quarter more than doubled from a year ago, as the Japanese automaker continues to tackle a turnaround from the first full year loss in its history. Tokyo-based Honda Motor Co. said Wednesday its April-June profit totaled 456.9 billion yen ($2.9 billion), up from 196.6 billion yen for the same period a year ago. Quarterly sales rose 13.5% to 6.06 trillion yen ($38 billion), as vehicles sold well in the U.S. and India, according to the maker of the Accord sedan, Fit subcompact and Super Cub motorcycle. Honda previously recorded a 423.9 billion yen ($2.7 billion) loss for the fiscal year ended in March, acknowledging heavy costs for its electric-vehicle plans, which didn’t measure up to the original ambitions, partly because of U.S. President Donald Trump’s policies. Analysts say many consumers weren’t ready to go electric. Honda has abandoned many of its plans for EV models. The Trump administration has pulled back on incentive programs for EVs and withheld money to states wanting to add more EV charging stations, even as gas prices have soared over the war in Iran. Trump’s tariffs on imported autos and auto parts, lowered to 15% from the initial 25%, also worked to dent Honda’s profitability. For the latest quarter, Honda’s motorcycle operations were highly lucrative with sales going strong in Brazil and India. Car sales grew in Japan and the U.S., while struggling in China. Chief Financial Officer Masao Kawaguchi said Honda was working to offer the kinds of models that appeal to Chinese buyers, which are different from those in other markets. “For that, we must fully utilize our resources in that market,” he told reporters. That may still take another year or two, he added. Kawaguchi said Honda’s overall first quarter results were very healthy, thanks partly to a favorable exchange rate. Although the recent U.S.-Japan joint intervention has boosted the yen’s value somewhat, the U.S. dollar traded higher during the fiscal first quarter, compared with the previous year. A cheap yen is a boon for Japanese exporters like Honda because it raises the value of its overseas earnings when translated into yen. Honda is expecting a return to profit for this fiscal year and raised its profit forecast to 400 billion yen ($2.5 billion) from an earlier 260 billion yen ($1.6 billion). All the Japanese automakers have been impacted by last week’s 7.1 magnitude earthquake in Kumamoto in southwestern Japan. Some production lines were temporarily halted and supply chains disrupted. Like other Japanese companies, Honda is going on a summer break later this month. Officials said they’re hoping things will have returned to normal by the time they’re back at work, and the exact impact of the quake on vehicle production is still unclear. Honda shares jumped 3.9% in Tokyo trading after the financial results were released. ___ Yuri Kageyama is on Threads: https://www.threads.com/@yurikageyama

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. QuantumScape is transitioning from an automotive-only focus to a multi-vertical strategy by establishing QS EV, QS DC (AI Data Centers), and QSAS (Advanced Solutions for Aerospace and Defense). The new Honda partnership follows a rigorous technical assessment and provides a pathway to leverage Honda's existing solid-state manufacturing investments and diverse product portfolio. Operational progress on the Eagle pilot line is a primary driver for commercialization, with core tools showing uptime greater than 90% and productivity hitting internal targets. Management attributes the expansion into AI data centers to the market's transition toward 800-volt architectures and the critical need for high-power, safe energy storage near high-value GPUs. The company is leveraging its 'no-compromise' technology platform, where the ceramic separator and anode-free architecture serve as a common foundation across all three business verticals. Strategic positioning in the defense sector is validated by recent shipments of QSE5 cells to a major American defense prime for unmanned systems and drones. Management aims to double cell output from the Eagle line in the second half of 2026 to accelerate sample shipments across all three business verticals. The roadmap includes transitioning to larger format cells beyond the QSE5, utilizing the COBRA process to produce larger area separators for higher energy density. The AI data center vertical is targeting product integration aligned with the industry's shift toward megawatt racks and 800-volt designs expected around late 2028. Future high-volume production strategy involves orchestrating a network of partners, including equipment vendors and ceramic manufacturers like Murata and Corning. Guidance for 2026 assumes continued capital discipline, with lowered CapEx projections reflecting cost savings on specific projects while maintaining R&D momentum. The Volkswagen/PowerCo agreement was updated to align with the new technology roadmap, reducing total possible payments from approximately $131 million to $75 million. Management expects the PowerCo amendment to be cash-neutral as the reduction in potential payments is offset by significantly reduced project-specific expenses. Full-year 2026 CapEx guidance was lowered to between $27 million and $37 million, down from previous estimates, due to capital discipline and project efficiencies. New safety testing demonstrated thermal stability up to 300 degrees Celsius, significantly exceeding the 200-degree threshold typical for conventional lithium-ion cells. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that the shift reflects a natural progression of the relationship to align with the future technology roadmap, such as larger cell formats. The change does not indicate a shift in the underlying objective to industrialize and transfer technology for automotive commercialization by 2029. The $130 million prepayment remains unchanged and is scheduled to be released upon achieving specific technical milestones and form factor alignments. Progress on the Eagle line and COBRA process for larger separators supports the trajectory toward triggering these payments. Unlike automotive OEMs who have their own battery pilot lines, data center and defense customers often require different integration paths involving ODMs. The company is hiring specialized leadership and sales personnel to manage these faster-moving markets where product cycles are shorter than automotive. Management noted that the existing agreement with PowerCo allows for up to 5 gigawatt-hours of production to be sold outside the automotive market. While the Eagle line handles current sampling, the company will eventually need to add or partner for additional capacity to meet long-term demand in these sectors.

This article first appeared on GuruFocus. GAAP Operating Expenses: $106.1 million in Q2 2026. GAAP Net Loss: $98.2 million in Q2 2026. Adjusted EBITDA Loss: $64.2 million in Q2 2026. Capital Expenditures: $4.6 million in Q2 2026. Full Year 2026 Adjusted EBITDA Loss Guidance: Between $250 million and $275 million. Full Year 2026 CapEx Guidance: Lowered to between $27 million and $37 million. Customer Billings in Q2 2026: $10.8 million. Total Customer Billings through Q2 2026: $21.8 million. Liquidity at End of Q2 2026: $859 million. Warning! GuruFocus has detected 2 Warning Sign with QS. Is QS fairly valued? Test your thesis with our free DCF calculator. Release Date: July 22, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. QuantumScape Corp (NASDAQ:QS) announced a multi-year partnership with Honda to advance solid-state lithium metal battery technology, marking a significant step in automotive commercialization. The company has updated its collaboration with Volkswagen PowerCo, focusing on automotive cell development and larger format cells, indicating progress in their technology roadmap. QuantumScape Corp (NASDAQ:QS) is establishing three business verticalsQSEV for electric vehicles, QSDC for AI data centers, and QSAS for advanced solutions, diversifying its market reach. The Eagle Line, a highly automated pilot cell production line, is showing significant operational progress with core tools achieving over 90% uptime, enhancing production scalability. QuantumScape Corp (NASDAQ:QS) reported customer billings of $21.8 million through Q2 2026, exceeding fiscal year 2025 billings, demonstrating strong customer engagement and demand. QuantumScape Corp (NASDAQ:QS) reported a GAAP net loss of $98.2 million in Q2, highlighting ongoing financial challenges. The adjusted EBITDA loss for Q2 was $64.2 million, indicating continued operational expenses and investment needs. The updated agreement with Volkswagen PowerCo reduced potential payments from $131 million to $75 million, reflecting a decrease in expected financial inflows. Capital expenditures guidance for 2026 was lowered to between $27 million and $37 million, suggesting a need for capital discipline and cost savings. The company faces challenges in scaling up production and meeting customer demand, as demonstrated by the complex integration and ramp-up of the Eagle Line. Q: What are the key goals for QuantumScape in 2026, and how is the company progressing towards them? A: Dr. Siva Sivaram, President and CEO, outlined four main goals: demonstrating scalable production with the Eagle Line, advancing automotive commercialization with QS EV, entering new high-value markets, and progressing beyond QSC 5 with future technology. The company is making strong operational progress, working with top automakers, and exploring new business verticals. They have also shown advancements in technology and safety data. Q: Can you provide an update on the relationship with Volkswagen PowerCo and its impact on commercialization? A: Dr. Siva Sivaram stated that the relationship with VW PowerCo remains strong, with updated milestones focusing on larger form factor cells and advanced technology elements. Kevin Hettrich, CFO, added that the financial impact is neutral, with reduced expenses offsetting lower payments under the new agreement. Q: How is the Eagle Line contributing to QuantumScape's progress, and what are the benefits of increased cell output? A: Dr. Siva Sivaram explained that the Eagle Line's increased productivity allows for more customer samples, rapid learning, and serves as a basis for technology transfer to higher volume lines. This progress supports customer demand and enhances the company's ability to scale production. Q: What is the focus for QuantumScape's new business verticals, and how do they align with the company's technology platform? A: Dr. Siva Sivaram emphasized that the new verticals, QSDC and QSAS, leverage the QSC 5 platform's capabilities. The focus is on go-to-market strategies and customer engagement, with plans to expand into high-value markets like AI data centers and aerospace, which complement the existing automotive focus. Q: How does QuantumScape plan to capitalize on the demand in the data center market, and what are the expected timelines? A: Dr. Siva Sivaram noted the significant demand for high-quality power delivery in data centers. The company is working with data center architects and ODMs to develop integrated solutions. The transition to 800-volt designs is expected to drive demand, with product deployment anticipated by the end of 2028. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

QuantumScape Corporation QS used its second-quarter 2026 earnings call to shift investor attention away from a simple quarterly loss figure and toward commercialization milestones, customer expansion and new end markets. Management’s message was that the company is broadening the path to scale while keeping its core automotive plans intact.That framing mattered because the quarter combined a narrower-than-expected loss with several strategic updates, including a Honda partnership, revised PowerCo milestones and a formal push into AI data centers and defense. President, CEO and director Siva Sivaram put the new Honda partnership at the top of the call. He described it as a multi-year agreement covering automotive and other applications in Honda’s portfolio, and he framed the deal as the result of a demanding technical evaluation.Management also said it amended the ongoing collaboration and licensing arrangement with Volkswagen PowerCo, with the updated scope tied to automotive cell development, larger-format cells and the future technology roadmap.Beyond Honda and PowerCo, Sivaram said QS is working with two other top-10 auto OEMs under joint development agreements and shipped cells to an additional automotive OEM during the quarter. That kept the automotive story centered on customer count, technical progress and paid relationships rather than near-term revenues. Chief financial officer Kevin Hettrich said second-quarter GAAP operating expenses were $106.1 million and GAAP net loss was $98.2 million, while adjusted EBITDA loss was $64.2 million. The company reported second-quarter loss of 16 cents per share, narrower than the Zacks Consensus Estimate of a loss of 18 cents. QuantumScape Corporation price-consensus-eps-surprise-chart | QuantumScape Corporation Quote Hettrich reiterated full-year 2026 adjusted EBITDA loss guidance of $250 million to $275 million. He also lowered capital expenditure guidance to $27 million to $37 million from prior expectations, citing capital discipline and savings on specific projects.Customer billings were another focus. Hettrich said second-quarter billings reached $10.8 million and first-half 2026 billings totaled $21.8 million, already above full-year 2025 billings of $19.5 million. He emphasized that billings can be lumpy, but management clearly wants investors tracking commercial traction through this metric. QuantumScape also formalized three verticals: QSEV for electric vehicles, QSDC for AI data centers and QSAS for advanced solutions such as aerospace and defense. Sivaram said the same underlying technology stack can serve multiple markets, with different go-to-market models layered on top.The AI data center pitch centered on rising rack power demands and the move toward 800-volt DC architectures. Management said QSDC is already working with original design manufacturers and data center architects on QSE-5-based solutions.On the defense side, QSAS shipped QSE-5 cells to a major American defense prime. In Q&A, Sivaram added that advanced solutions also cover medical devices and consumer electronics, showing the company wants this unit to be a broader commercialization channel beyond autos. The Eagle Line remained the core operational proof point. Sivaram said the automated pilot line in San Jose is now showing core tool uptime above 90%, while key productivity metrics are meeting targets and sample shipments are ramping.Management said it aims to double cell output again in the second half of 2026. That target matters because Eagle Line serves three functions at once: producing more customer samples, speeding process learning, and providing the manufacturing template for future scale-up and technology transfer.In the analyst Q&A, Sivaram repeatedly tied future milestones, especially with PowerCo, back to Eagle Line execution. He said progress there is what determines how quickly QuantumScape can transfer its process to partners for larger-scale production. Another notable management theme was safety. QuantumScape said broader testing on QSE-5 continued to support its argument that the cell design is safer than both conventional and next-generation lithium-ion approaches, with results spanning nail penetration, external short circuit, and thermal stability up to 300 degrees Celsius.The company also pointed to progress on larger-area separators produced with its Cobra process. Management presented that as evidence that the technology can move beyond the current QSE-5 format toward higher-capacity cells with better packaging efficiency. Analyst questions reinforced that these roadmap items now sit closer to the center of the PowerCo relationship. Sivaram said larger-format cells and advanced roadmap elements are part of the milestone set now guiding joint work. The clearest takeaway from the call was that management wants QuantumScape judged on expanding commercialization options, not just on a single automotive timetable. Sivaram’s prepared remarks and Q&A answers consistently linked autos, AI infrastructure and defense to one common need: better batteries backed by a scalable production system.At the same time, management did not back away from existing automotive goals. On Q&A, Sivaram said the 2029 production target tied to PowerCo remains unchanged, leaving the quarter’s message as one of addition rather than strategic replacement. QS currently carries a Zacks Rank #4 (Sell), along with a Value Score of F, Growth Score of B, Momentum Score of A and VGM Score of C. Under the Zacks framework, the rank is the primary signal, while Style Scores work best as a complement rather than a substitute.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.That combination points to mixed style characteristics, with stronger growth and momentum traits offset by weak value measures, but the rank keeps the overall signal cautious. The Zacks framework also notes that the rank can change as earnings estimate revisions adjust after results, so that assessment is not fixed. 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 QuantumScape Corporation (QS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research