Nissan cuts losses but expects to return to profit in 2027
Nissan said Wednesday it reduced its fiscal-year losses but remained in the red, attributing the setback to U.S. tariffs, inflation and mounting competition in the global auto market. The company reported that losses for the fiscal year through March totaled 533 billion yen, reflecting a smaller red ink than the 670.9 billion yen loss it posted in the previous fiscal year.
In its results, Nissan also pointed to weaker demand and sales declines during the period. The automaker said its annual sales fell 5% to 12 trillion yen, while it sold 3.15 million vehicles globally during the fiscal year ended March 31.
On a quarterly basis, Nissan reported a net loss of 282.9 billion yen for the January-March period, compared with a 676 billion yen loss a year earlier. The company said quarterly sales declined nearly 2% to 3.43 trillion yen.
Chief Executive Ivan Espinosa said Nissan was moving past recovery and toward growth. Espinosa said, “We have moved beyond recovery and are entering a phase of growth,” adding that the company would build on that momentum through “disciplined cost management and faster product execution, driving sales and profitability.” He described Nissan’s turnaround progress as including “clear signs” of improvement.
Nissan said it is pursuing cost cuts and other steps to become more profitable, and it said it managed to record a better-than-expected operating profit. The company also tied its expectations for improved results to upcoming model launches.
The results also reflected a continued strain in Nissan’s financial position despite the reduced losses. Nissan said the financials were in their worst shape in years, and it has been slashing thousands of jobs and sold its headquarters building, according to the company’s briefing around the earnings.
Looking ahead, Nissan said it expects to revert to profit for the fiscal year through March 2027, projecting a 20 billion yen profit. Japanese automakers overall have struggled amid competition from newer Chinese automakers, Nissan said, as Chinese brands have gained dominance in Asian markets.
Nissan also said that while there had been talks in recent years about merging operations with rival Honda Motor Co., those discussions collapsed. Nissan said that even if a merger is out, limited cooperative partnerships may still be possible.
Nissan shares finished 4% higher after the announcement.