Japanese automaker Nissan Motor Co. reported a narrowing of its losses in the latest fiscal year and projected a return to profitability in the current year, signaling a gradual recovery from a prolonged slump. The company said its net loss for the fiscal year ended March 31, 2026, was 80.9 billion yen ($530 million), a significant improvement from the 445.6 billion yen loss a year earlier.
Improved Sales and Cost-Cutting
Nissan attributed the improvement to stronger sales in North America and Japan, as well as cost-cutting measures implemented under its turnaround plan. The automaker's global sales rose 4.7% to 3.4 million vehicles, driven by demand for its Rogue and Pathfinder SUVs. Operating profit for the fiscal year was 37.8 billion yen, compared with an operating loss of 150.1 billion yen the previous year.
Profit Forecast for Current Year
For the current fiscal year ending March 2027, Nissan forecast a net profit of 150 billion yen ($980 million), reflecting expectations of continued sales growth and further cost reductions. The company aims to increase global sales to 3.6 million vehicles, with a focus on electric vehicles and crossovers.
Challenges Remain
Despite the positive outlook, Nissan faces challenges including intense competition in the electric vehicle market, supply chain disruptions, and rising material costs. The automaker also continues to grapple with the aftermath of its alliance restructuring with Renault and Mitsubishi.
Nissan shares rose 2.5% in Tokyo trading following the announcement, as investors welcomed the turnaround signs.
