Nissan's Turnaround Profit
Nissan reports 77.9 billion yen profit, marking fourth straight quarter in black amid ongoing turnaround efforts.
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Key Points
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A powerful earthquake in southern Japan forced Nissan to suspend production at two car plants last month.
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The yen's depreciation boosted Nissan's earnings by inflating the value of overseas profits.
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Nissan reported quarterly sales of 2.96 trillion yen, up 9.5% year on year.
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The quarter swung from a 79.12 billion yen loss a year earlier to an operating profit of 77.89 billion yen.
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Some reports indicate a separate net profit target of 20 billion yen for the year, alongside the 200 billion yen operating profit target.
Nissan swung from a 79.12 billion yen loss to an operating profit of 77.89 billion yen in its latest quarter, marking its fourth straight quarter in the black. Whales Book reported quarterly sales climbed 9.5% to 2.96 trillion yen, well above what analysts had expected.
The turnaround is being driven by deep cost cuts under CEO Ivan Espinosa, who took charge in April 2025. But Nissan still faces real headwinds — softening demand in China and the Middle East, rising raw material costs, and fierce competition from Chinese electric vehicle makers.
Cost Cuts and a Weaker Yen Fuel the Comeback
Nissan's profit revival rests on two pillars: aggressive cost reduction and a weaker yen. A softer yen inflates the value of profits earned overseas when converted back to Japanese currency. Those currency gains helped offset higher raw material costs and weaker car sales volumes globally, according to Brand Icon Image.
CEO Espinosa has pushed hard on restructuring since taking over. The plan includes cutting headcount and reducing factory capacity. Nissan set a net profit target of 20 billion yen for the full year, alongside a 200 billion yen operating profit goal, per Whales Book.
Sales Target Cut as China and Middle East Drag
Despite the profit beat, Nissan trimmed its annual retail sales forecast to about 3.15 million vehicles. The company kept its 200 billion yen operating profit target unchanged, but acknowledged that demand in China and the Middle East remains a serious concern, Freedom 96.9 reported.
China is a particularly tough market. Local EV brands have taken significant share from foreign automakers. Nissan is racing to stay competitive while targeting a return to sustained profitability by the fiscal year ending March 2027.
Earthquake Halts Production at Two Japanese Plants
A powerful earthquake in southern Japan forced Nissan to suspend production at two of its domestic plants last month. The disruption added further pressure to a company already managing tight output and a leaner global footprint, according to Head Topics.
The suspension added uncertainty to Nissan's already cautious full-year outlook. The company has not yet said how much output was lost or when both plants returned to full operation.
Nissan's Road to March 2027 Profitability Target
Nissan posted net profit of roughly 3.8 billion yen — about $24 million — for the quarter, a sharp reversal from the deep loss one year earlier. Fine Day Radio noted the result reflects real momentum from the cost-cutting plan, even as volumes stay under pressure.
The bigger goal is clear: reach stable profitability by the fiscal year ending March 2027. To get there, Nissan must grow sales, hold down costs, and find a way to compete with Chinese EV makers who are moving fast and pricing aggressively across Asia and beyond.
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