Nissan Motor (7201) Q1 2025 earnings summary

Executive summary

• Net revenue for Q1 2024 rose 3% year-over-year to ¥2,998.4 billion, but operating profit plunged 99% to ¥1.0 billion and net income dropped 73% to ¥28.6 billion due to significant margin compression and higher selling expenses amid increased competition.

• Global retail sales volume was nearly flat at 787,000 units, with growth in China and Europe offset by declines in Japan and North America.

• Sales financing profits declined due to normalization of credit losses and higher funding costs, though liquidity and funding sources remain strong.

• Immediate actions are being taken to address weaker performance, including inventory normalization and new model launches.

Financial highlights

• Consolidated net revenue: ¥2,998.4 billion (up 3% year-over-year); operating profit: ¥1.0 billion (down 99% year-over-year); net income: ¥28.6 billion.

• Automotive business operating loss: ¥74 billion; negative free cash flow: ¥302.8 billion.

• CapEx: ¥100.8 billion; R&D: ¥147.9 billion.

• Operating profit margin fell from 4.4% to 0.0% year-over-year.

• Net cash for the automotive segment decreased to ¥1,403.8 billion as of June 30, 2024.

Outlook and guidance

• FY2024 net revenue guidance raised to ¥14,000 billion; operating profit guidance cut to ¥500 billion (3.6% margin); net income forecast reduced to ¥300 billion.

• Full-year unit sales forecast revised down to 3.65 million units; China sales expected to decrease by 3.8%.

• Capital investment and R&D spending guidance unchanged at ¥620 billion and ¥665 billion, respectively.

• Forex assumptions updated to 155 USD/JPY and 167 EUR/JPY.

• Dividend forecast unchanged at ¥20 per share for FY2024.