Nissan Motor (7201) Q4 2025 earnings summary

Executive summary

• FY2024 net revenue was ¥12,633.2 billion, down 0.4% year-over-year, with a net loss of ¥670.9 billion due to significant impairment charges and restructuring costs.

• Operating profit dropped 87.7% to ¥69.8 billion, with global retail sales falling 2.8% to 3,346,000 units, mainly from declines in China and Japan, partially offset by North America growth.

• The company launched a recovery plan focused on aggressive cost reductions, plant consolidations, workforce optimization, and strategic partnerships.

• Management aims to reduce costs by ¥500 billion, close 7 plants, and cut 20,000 jobs globally by FY2027.

• Product portfolio realignment and increased collaboration with Renault, Mitsubishi, and Honda are central to the turnaround.

Financial highlights

• Operating profit for FY2024 was ¥69.8 billion, with an operating margin of 0.6%, down from ¥568.7 billion and 4.5% in FY2023.

• Impairment charges exceeded ¥494.9 billion, and restructuring costs were close to ¥60 billion.

• Automotive business posted an operating loss of ¥215.8 billion and negative free cash flow of ¥242.8 billion.

• Net cash in the auto segment remained healthy at ¥1,498.4 billion as of March 31, 2025.

• Sales finance operating profit was slightly lower year-over-year, with higher credit losses and funding costs.

Outlook and guidance

• FY2025 net sales are forecast at ¥12,500 billion, with retail sales expected to decline 2.9% to 3.25 million units, mainly due to an 18% drop in China.

• Operating profit for FY2025 is expected to be break-even or negative, with guidance at ¥-133.2 billion, reflecting a projected net loss.

• Q1 FY2025 is forecasted to be the most challenging, with an operating loss of ¥200 billion and negative auto free cash flow of ¥550 billion.

• No dividend is planned for FY2025.

• Full-year guidance remains undetermined due to tariff and restructuring uncertainties.