Nissan reports deeper quarterly loss, restructuring costs weigh on outlook

Nissan reported deeper losses for the October-December quarter through December, attributing the result to restructuring costs that hurt profitability compared with the same period a year earlier. The automaker, based in Yokohama, said the loss totaled 28.3 billion yen ($185 million), compared with a 14 billion yen loss in the prior year period.

The company also reported that quarterly sales slipped 6% to nearly 3 trillion yen from about 3.2 trillion yen a year earlier. Nissan’s financial results reflected a turnaround effort that includes cost-cutting actions the company has taken as it tries to return to profit.

Nissan said the restructuring process drove the deterioration in earnings, with Chief Executive Ivan Espinosa telling reporters that restructuring brings costs. Espinosa said “Unfortunately, when you do restructuring, there are costs that are incurred,” adding, “In a way, it is expected,” according to his remarks carried by The Associated Press.

Espinosa said Nissan is on the right track but acknowledged headwinds that are affecting sales. The executive pointed to President Donald Trump’s tariffs and other pressures, saying those factors weigh on the market environment for automakers.

In laying out its path forward, Nissan said it is hoping to achieve an operating profit by the end of fiscal 2026. The company expects an operating loss for the current fiscal year and projected a 650 billion yen ($4.2 billion) net loss for the year through March.

Nissan has been cutting jobs and selling assets as part of its restructuring, and it has said it is closing its flagship factory in Oppama, Japan, as part of global production restructuring. The company also produces the Leaf electric car and Infiniti luxury models, and it has said it is working on further improving its electric-vehicle offerings.

Espinosa said Nissan needs to do more to win consumers to electric vehicles, including developing new battery types. He also said he was optimistic about the company’s new Leaf model.

The results came as some analysts have suggested electric-vehicle popularity is subsiding, a view that could make it harder for companies such as Nissan that have been bullish on EVs. Nissan shares, which have slipped over the past year, rose 0.5% on Thursday, following the earnings announcement.

Nissan’s turnaround efforts also reflect its industrial partnerships, including its alliance with French automaker Renault and a relationship with Mitsubishi Motors Corp.