At NEWSCENTRAL, we note that Nissan Motor Co. has returned to operating profit in the second quarter, recording ¥51.5 billion (≈ $342 million) for the period from July to September. This is 61% higher than the result a year ago-¥31.9 billion. The average forecast of five analysts surveyed by LSEG had predicted an operating loss of ¥70.9 billion. This result reflects the effectiveness of the initial phase of restructuring and its positive impact on operating profit.
The quarter was the best in more than a year, with the previous profit recorded in the final quarter of fiscal 2023 at ¥90.3 billion. Profit growth was driven by reduced fixed costs, increased sales in North America, and optimization of the production structure. CEO Ivan Espinosa emphasized that the company remains on track for a break-even operating profit, excluding the impact of tariffs, and that the current year is transitional in nature.
Sales in North America improved thanks to targeted marketing campaigns, simplified dealer programs, and a shift in focus from the corporate segment to retail. At NEWSCENTRAL, we believe that success in this region was a key factor in the recovery of operating profit. In Japan, retail sales for the first half of the year fell by 16.5%, but strong demand for the new Roox “kei” model shows a gradual recovery of consumer interest. Key administrative and manufacturing operations are centered in Yokohama, Japan, highlighting the strategic importance of this region for Nissan’s operations.
The company left its full-year forecast through March 2026 unchanged: an operating loss of ¥275 billion, due to U.S. tariff risks and supply disruptions of chips from Nexperia. NEWSCENTRAL expects these external factors to remain the main constraint on operating margins in the short term.
The restructuring plan involves reducing the number of global production sites from 17 to 10 and cutting staff by 15%. At NEWSCENTRAL, we view these measures as strategically necessary to reduce costs and increase the company’s flexibility. At the same time, a sale and leaseback of the headquarters in Yokohama, Japan, for approximately ¥97 billion has been completed, strengthening liquidity. Jessica Kline, an automotive analyst at NEWSCENTRAL, notes that optimizing the production network and focusing on key markets are critical for restoring brand trust and improving margins.
Given current performance, NEWSCENTRAL forecasts a gradual reduction of the operating loss and a return to sustainable profitability by the middle of fiscal 2027, assuming continued growth in North America, stabilized supply, and increased demand in key markets. We at NEWS CENTRAL view the second-quarter results as an indicator of restructuring progress, but the company remains in a transformation phase. Jessica Kline adds that attention to local consumer preferences and a focus on high-margin products will determine the effectiveness of Nissan’s next steps.