Nissan Motor (7201) Q2 2025 earnings summary

Executive summary

• Net revenue for the first half was JPY 5.984 trillion, flat or down 1% year-over-year, with operating profit dropping 90% to JPY 32.9 billion and net income falling 94% to JPY 19.2 billion; global retail sales declined 1.6% to 1.596 million units, with notable drops in China and Japan.

• Operating profit margin fell to 0.5%-0.6% from 5.6% year-over-year.

• Management initiated a turnaround plan with restructuring, cost reduction, and product competitiveness, including a 20% reduction in global production capacity and a 9,000-person headcount reduction.

• CEO and executive committee members are taking voluntary pay cuts to demonstrate management responsibility.

• Strategic focus is on electrification, partnerships, and maximizing competitiveness in key markets.

Financial highlights

• Consolidated net revenue for the first half was JPY 5.98 trillion; operating profit was JPY 32.9 billion; net income totaled JPY 19.2 billion; automotive business net loss was JPY 116.1 billion.

• Free cash flow was negative JPY 448.3 billion, with net cash at JPY 1.36 trillion and liquidity remaining ample.

• CapEx and R&D spending increased, with H1 figures at JPY 155.2 billion and JPY 230.8 billion, respectively.

• Operating profit variance was driven by negative sales performance and increased costs, partially offset by positive FX and raw material impacts.

• Net credit loss ratio in sales financing increased, especially in the US and China.

Outlook and guidance

• Full-year retail sales forecast revised down to 3.4 million units, a 6.8% decline from previous guidance; full-year revenue expected at JPY 12.7 trillion.

• Operating profit for the full year revised down to JPY 150 billion, JPY 350 billion lower than prior forecast, with OP margin expected at 1.2%.

• CapEx and R&D for the year projected at JPY 580 billion and JPY 650 billion, respectively.

• Interim dividend suspended; year-end dividend to be determined based on recovery pace.

• FX assumptions for the remainder of FY2024 are 149 USD/JPY and 164 EUR/JPY.