Nissan Motor (7201) Q2 2026 earnings summary

Executive summary

• First half FY25 retail sales volume declined 7.3% year-on-year, with notable drops in China and Japan, but North America grew 2.0%; Q2 showed stabilization and growth in key markets.

• Net revenue for H1 was ¥5,578.7 billion, with an operating loss of ¥27.7 billion and net loss of ¥221.9 billion, mainly due to lower equity method income, asset impairments, and restructuring costs.

• Q2 operating profit improved to ¥51.5 billion (1.8% margin), showing signs of stabilization.

• Over ¥80 billion in fixed cost savings achieved in H1 through recovery initiatives, with a target of ¥500 billion by FY2026.

• Strategic transformation includes cost reductions, product-market redefinition, partnerships, and restructuring of manufacturing sites.

Financial highlights

• Automotive free cash flow was negative ¥592.8 billion in H1, but Q2 improved to negative ¥202 billion.

• Net cash for the auto segment at September 30, 2025, was ¥990.9 billion, with total liquidity at ¥3.6 trillion, including ¥2.2 trillion in cash and ¥2.3 trillion in unused credit lines.

• Extraordinary losses included a ¥70.8 billion impairment and other one-time items, while gross profit fell to ¥663.4 billion.

• Foreign exchange and tariffs had a combined negative impact of ¥215 billion.

• Net cash provided by financing activities increased to ¥575.9 billion, mainly from bond issuance.

Outlook and guidance

• FY25 net revenue is forecast at ¥11,700 billion, with an operating loss of ¥275 billion and retail sales volume outlook of 3,250,000 units, a 2.9% year-on-year decline.

• H2 is expected to be stronger, with positive auto free cash flow and a net cash target of ¥1 trillion by year-end.

• No net income outlook or dividend forecast due to ongoing restructuring and cautious outlook.