Japan 's second largest carmaker Honda on Thursday confirmed its first operating loss since 1957, before it started selling mass-produced cars in the early 60s.

The company has embarked on a major overhaul of its electic vehicle (EV) strategy, particularly in its core market in the US, after previously betting on more rapid electrification of the industry.

Honda had already warned of a sizeable financial hit as a result of this shift in March, meaning that investors were largely unperturbed by Thursday's financial data. Indeed, Honda's stock rose sharply as the company also predicted a return to profitability in 2026.

What were Honda's losses and sales figures?

The company reported an operating loss of 413.4 billion yen (roughly €2.23 billion or $2.6 billion) amid huge write-downs in its EV operations.

Honda also posted a slightly larger net loss, at 423.9 billion yen.

The company sold 3.4 million four-wheeled vehicles around the world in the fiscal year through March, down from 3.7 million the…