TOKYO — Nissan Motor Corp. narrowed its annual loss to 533 billion yen ($3.4 billion) for the fiscal year ended March 31, 2026, as the Yokohama-based automaker continued to work through a punishing combination of U.S. tariffs, inflation, and intensifying competition from Chinese manufacturers. The result, reported Wednesday, marked an improvement from the 670.9 billion yen loss the company posted the prior year.

Chief Executive Ivan Espinosa framed the financials as evidence of a turnaround. “We have moved beyond recovery and are entering a phase of growth,” Espinosa said in a statement. “We will build on this momentum through disciplined cost management and faster product execution, driving sales and profitability.”

Annual sales fell 5% to 12 trillion yen ($76 billion). On a quarterly basis, the January-through-March period produced a net loss of 282.9 billion yen ($1.8 billion), compared to the far larger 676 billion yen loss recorded in the same quarter a year earlier. Quarterly sales slipped nearly 2% to 3.43 trillion yen ($22 billion).

Despite the smaller losses, the company’s financial position remains among its weakest in years. Nissan, which makes the Altima sedan, Pathfinder SUV, Leaf electric vehicle, and Infiniti luxury models, sold 3.15 million vehicles globally during the fiscal year. It has been reducing its workforce by thousands of positions and sold its headquarters building as part of a cost-cutting push.

The automaker projected a modest return to profitability for the fiscal year through March 2027, forecasting a net profit of 20 billion yen ($127 million). Nissan said it recorded a better-than-expected operating profit and expects upcoming model launches to improve results.

Japanese automakers broadly have struggled to hold market share in Asia against the rapid expansion of newer Chinese manufacturers, which now dominate the region’s sales. Talks between Nissan and rival Honda Motor Co. to merge some operations collapsed earlier, though limited cooperative partnerships remain possible.

Nissan’s stock finished 4% higher on the day.