Nissan Motor (7201) Q3 2026 earnings summary

Executive summary

• Achieved operational progress and advanced the Re:Nissan recovery plan despite challenging sales, with stable US share, weak demand in Japan and Europe, and solid growth in China supported by new NEVs.

• Q3 FY25 delivered a positive operating profit of ¥17.5 billion, with cost savings offsetting tariff impacts and improved free cash flow versus the previous quarter.

• Net sales for the nine months ended December 31, 2025, declined 6.2% year-over-year to ¥8,578.0 billion, with global retail sales volume down 5.8% to 2,257 thousand units, despite a 5.3% increase in global industry volume.

• Operating loss for nine months was ¥10.1 billion, mainly due to U.S. tariffs and unfavorable foreign exchange rates, partially offset by cost reductions.

• Retail sales outlook for FY25 adjusted to 3.2 million units, with expectations for a strong Q4 finish and narrowing full-year operating loss.

Financial highlights

• Nine-month net revenue declined to ¥8,578.0 billion, with unit sales down 5.8% year-on-year.

• Operating loss for nine months was ¥10.1 billion, improving from the first half; net loss reached ¥250.2 billion, mainly due to non-cash impairments and restructuring.

• Q3 delivered a positive operating profit of ¥17.5 billion, with operating margin at 0.6%.

• Automotive business posted ¥7.6 trillion in net revenue and a negative free cash flow of ¥691.4 billion.

• Extraordinary losses increased to ¥224.0 billion, including an ¥80.6 billion impairment loss on fixed assets in Japan.

Outlook and guidance

• Full-year FY2025 net sales are forecast at ¥11,900.0 billion, down 5.8% from the previous year, but up ¥200 billion from prior guidance.

• FY25 operating loss forecast narrowed to -¥60.0 billion, with net loss outlook of ¥650.0 billion, mainly due to non-cash restructuring charges and asset impairments.

• Retail sales volume for FY25 expected at 3.2 million units, a 4.4% decrease year-over-year.

• Free cash flow expected to return positive in the second half.

• Basic earnings per share for the full year is forecast at ¥(186.04).