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.

• Retail sales volume declined 1.8% year-over-year, with significant drops in China (-9.1%) and Japan (-2.6%), but North America saw a 2.4% increase.

• 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 focus on cost reduction, right-sizing, and product portfolio enhancement, including a 20% reduction in global production capacity and a 9,000 headcount reduction.

Financial highlights

• Operating profit margin for FY24 Q3 YTD was 0.7%, down from 5.2% the previous year; net income margin was 0.06%.

• Free cash flow for FY24 Q3 YTD was negative ¥506.7 billion; CapEx and R&D spending increased year-over-year.

• Gross profit decreased to ¥1,269.4 billion from ¥1,575.1 billion year-over-year.

• Net cash in the automotive segment stood at ¥1,241.0 billion as of December 31, 2024; gross cash over ¥2 trillion.

• Unused committed credit lines exceeded ¥1.7 trillion.

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.

• Operating profit margin expected at 1.0% for FY24, down from 4.5% in FY23.

• FY24 retail sales outlook maintained at 3.4 million units, global production at 3.2 million units.

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

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