Nissan Motor swung back to an operating profit in the first quarter of the current financial year, helped by cost savings under its Re:Nissan turnaround programme.
For the three months to 30 June 2026, consolidated operating profit was Y77.88bn ($496.4m), representing a year-on-year improvement of Y157bn.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Consolidated net revenue increased by Y257bn to Y2.96tn, based on global sales of 701,000 units.
Net income moved into positive territory at Y3.76bn, compared with a loss of Y115.75bn in the same period a year earlier.
On a Tokyo Stock Exchange reporting basis, operating margin improved to 2.6% from negative 2.9%, while ordinary profit came to Y49.1bn, compared with a loss of Y109.2bn in the prior-year quarter.
Nissan said the turnaround was driven by improvements in manufacturing and vehicle cost efficiency, favourable currency movements, stronger sales performance and tighter cost discipline.
It also said one-off gains related to FY2025 US tariffs contributed to the operating profit figure.
The Re:Nissan cost-reduction programme delivered about Y60bn in savings during the quarter.
Nissan said variable cost reductions in manufacturing, purchasing, research and development, and other functions made up most of the improvement.
In the US, quarterly sales rose by nearly 10%, marking 16 straight months of year-on-year retail growth, which Nissan attributed to its “Built in the US for the US” strategy.
In Japan, cumulative orders for the newly launched Kicks and Elgrand models totalled 11,000 and 8,000 units respectively.
In China, Nissan said it is concentrating on inventory management and widening its NEV line-up through the N6, N7, NX8 and Frontier Pro models, while also seeking growth in overseas markets as it works to prepare for renewed growth from 2027.
The company reduced its FY2026 sales volume forecast to 3.15 million units from 3.3 million, citing a more difficult operating environment, particularly in China.
Nissan said performance in its other core markets remains aligned with full-year targets, with volumes outside China expected to increase year on year.
Despite the lower volume forecast, the company left its FY2026 financial guidance unchanged, including its operating profit target of Y200bn.
Nissan said external pressures include higher raw material costs and geopolitical tensions in the Middle East, while potential support could come from currency movements and the one-time gains recorded in the first quarter.
Nissan CEO Ivan Espinosa said: “The environment remains challenging, particularly in China and the Middle East, but our direction is clear. We are managing disruption where it exists, building momentum where we see opportunity, and executing Re:Nissan with discipline and urgency.
“Our focus is unchanged: creating value for customers, improving profitability and free cash flow, and building a stronger, more resilient Nissan for the long term.”
