Nissan Motor announced a consolidated operating profit of ¥58 billion (US$365.1 million) for the fiscal year ending March 31, 2026. The results, underpinned by the company’s “Re:Nissan” restructuring plan, indicate a stabilizing financial foundation despite a net loss of US$3.3 billion and a challenging global environment marked by inflationary pressures, shifting tariffs, and volatile market conditions.
The annual operating profit represents a 0.5% margin on consolidated revenue of US$75.5 billion. While operating profit declined by US$74.3 million compared with the previous fiscal year, the fourth quarter showed a significant improvement, generating US$428.7 million in operating profit—up sharply from the US$36.5 million recorded in the same period a year earlier.
Financial Recovery and Liquidity
Nissan’s automotive free cash flow for the full year remained negative at US$3.03 billion. However, the company reported a turnaround in momentum during the second half of the fiscal year, which generated positive free cash flow of US$704.7 million. Management described this shift as an early indicator of operational recovery.
As of year-end, Nissan maintained a strong liquidity position, reporting US$13.8 billion in automotive cash and cash equivalents. Including US$8.8 billion in loans to sales finance companies, total liquidity reached US$22.6 billion. Net cash in the automotive business stood at US$7.3 billion.
The company noted that full-year performance was supported by US$421.6 million in one-time effects from the relaxation of environmental regulations, along with aggressive cost-reduction measures.
Strategic Execution Under “Re:Nissan”
The “Re:Nissan” initiative, focused on cost structure reduction and product strategy realignment, delivered several milestones during FY2025. Nissan reported progress toward its US$3.1 billion cost-reduction target, achieving US$1.2 billion in fixed-cost savings and US$346.1 million in variable-cost savings.
Manufacturing optimization remains a core pillar of the strategy. Nissan confirmed plans to consolidate its global manufacturing footprint from 17 sites to 10, with execution already underway across seven sites through production transfers. The company also reduced its R&D engineering cost per hour by 18%, moving closer to its 20% efficiency target.
“FY2025 marked a year of steady execution under Re:Nissan, where we strengthened our foundation and began to see tangible progress in our financial performance. At the same time, we set our long-term direction with Mobility Intelligence for everyday life. We have moved beyond recovery and are entering a phase of growth,” said Ivan Espinosa, CEO, Nissan Motor.
Regional Performance and Market Strategy
Nissan reported qualitative improvements across its key markets:
- United States: A shift toward a retail-driven product mix improved business quality
- Japan: Sales were supported by targeted new model launches
- China: The company adopted a New Energy Vehicle (NEV)-led approach to maintain disciplined market participation
Inventory management and more precise marketing execution were also cited as key factors in aligning corporate decisions with value creation.
Fiscal Year 2026 Outlook
For the fiscal year ending March 31, 2027, Nissan projects a significant recovery, forecasting operating profit of US$1.2 billion and a return to net income of US$125.9 million. The outlook assumes an exchange rate of ¥150 per US dollar.
Net revenue is expected to rise to US$81.8 billion, driven by a projected 4.7% year-over-year increase in retail sales. Growth is expected to be supported by new model launches, including the Rogue e-POWER. Structural reforms are projected to contribute US$2.1 billion in cost reductions, partially offset by US$534.9 million in negative raw material impacts.
“In FY2026, we will build on this momentum through disciplined cost management and faster product execution, driving sales and profitability as we deliver our Re:Nissan commitments,” Espinosa stated.
