Nissan Motor (7201) Q3 2025 earnings summary

Executive summary

• Net revenue for the nine months ended December 31, 2024, was ¥9,143.2 billion, down 0.3% year-over-year; operating profit fell 86.6% to ¥64.0 billion, and net income dropped 98.4% to ¥5.1 billion, mainly due to lower sales volume, higher incentives, and inflation.

• Terminated business integration talks with Honda after rejecting a proposal for Nissan to become a wholly owned subsidiary, citing concerns over autonomy and maximizing potential.

• Turnaround actions are underway, targeting cost reductions, organizational streamlining, and improved operational efficiency, including a 20% reduction in global production capacity and a 9,000 headcount reduction.

• Strategic partnership discussions with Honda and other partners will continue, focusing on synergies and value creation.

• Nissan announced urgent measures in November 2024 to address cost competitiveness and brand power.

Financial highlights

• Operating profit margin for FY24 Q3 YTD was 0.7%, down from 5.2% the previous year.

• Free cash flow for FY24 Q3 YTD was negative ¥506.7 billion, with high CapEx and R&D spending.

• Net income attributable to owners of parent was ¥5.1 billion, down from ¥325.4 billion; basic EPS was ¥1.42, compared to ¥83.45 a year earlier.

• Total assets increased to ¥20,094.8 billion, while net assets decreased to ¥6,228.5 billion (28.5% of total assets).

• Comprehensive income turned negative at ¥(61.2) billion, compared to ¥686.9 billion in the prior year.

Outlook and guidance

• FY2024 full-year net sales forecast is ¥12,500.0 billion (down 1.5% year-over-year); operating income forecast is ¥120.0 billion (down 78.9%); net income attributable to owners of parent is forecast at ¥(80.0) billion, with basic EPS of ¥(22.31).

• Net revenue outlook trimmed by ¥200 billion to ¥12.5 trillion; operating profit reduced by ¥30 billion to ¥120 billion, with margin revised to 1%.

• Net income forecast includes an initial estimate of ¥100 billion in restructuring costs.

• Production volume for FY24 is projected at 3,400K units, down 1.2% from FY23; China production expected to fall 12.2%.

• Dividend forecast for FY2024 year-end and full-year total remains undetermined.