Nissan Motor (7201) Q4 2026 earnings summary

Executive summary

• FY 2025 saw a 5.8% decline in unit sales to 3.15 million, with notable drops in Japan and Europe, while China showed resilience in the second half due to new model launches.

• Net revenue decreased to JPY 12,007.9 billion, and operating profit fell to JPY 58.0 billion (0.5% margin), impacted by U.S. tariffs and unfavorable FX, partially offset by cost reductions.

• Net loss attributable to owners improved to JPY 533.1 billion from JPY 670.9 billion loss last year, with core operations showing signs of turnaround and positive free cash flow in H2.

• Cost reduction initiatives exceeded targets, achieving fixed cost savings above JPY 200 billion and variable cost savings of JPY 55 billion.

• Positive automotive free cash flow in H2, with net cash at year-end at JPY 1.17 trillion.

Financial highlights

• Consolidated net revenue reached JPY 12,007.9 billion for FY 2025.

• Operating profit was JPY 58.0 billion, ahead of expectations, but net loss totaled JPY 533.1 billion due to one-time items.

• Automotive business reported JPY 10,760.3 billion in revenue and an operating loss of JPY 239.9 billion, including tariff impacts.

• Free cash flow was negative JPY 480.8 billion for the year, but turned positive (JPY 112 billion) in the second half.

• Cash and cash equivalents at year-end increased to JPY 2,264.8 billion.

Outlook and guidance

• FY 2026 unit sales expected to rise 4.7% to 3.3 million, driven by new and refreshed models.

• Revenue forecasted at JPY 13 trillion, with operating profit projected at JPY 200 billion (1.5% margin).

• Net income expected to be positive JPY 20 billion; automotive operating profit and free cash flow to be positive before tariffs.

• Tariff burden projected at JPY 250 billion, with ongoing efforts to mitigate impact.

• No annual dividend anticipated for FY 2026.