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Nissan Starts Fiscal Year With Profit Turnaround as Recovery Plan Progresses; Full-Year Sales Volume Outlook Trimmed

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Nissan Starts Fiscal Year With Profit Turnaround as Recovery Plan Progresses; Full-Year Sales Volume Outlook Trimmed

Nissan Motor's (TYO:7201) full-year sales volume outlook downgrade overshadowed its positive start to the fiscal year as the Japanese automotive stock closed 3% in the red on Monday.

Amid its Re:Nissan recovery plan, the automotive giant logged net income attributable to owners of the parent of 3.76 billion yen in the three months through June 30, recovering from a loss of 115.8 billion yen in the year-ago period. Net sales grew to 2.964 trillion yen from 2.707 trillion yen.

"The environment remains challenging, particularly in China and the Middle East, but our direction is clear. We are managing disruption where it exists, building momentum where we see opportunity, and executing Re:Nissan with discipline and urgency," Chief Executive Ivan Espinosa said in a statement.

Against this background, the company lowered its sales volume outlook for the fiscal year ending March 31, 2027, to 3.150 million units from 3.3 million units. Production volume expectations were also lowered to 2.8 million units from 2.95 million units. Both are lower than the respective figures of 3.151 million units and 2.9 million units from the prior year.

On the other hand, Nissan confirmed its financial targets for the fiscal year, which include wiping out losses for a 20 billion-yen attributable net income and an 8.3% annual growth in net sales to 13 trillion yen.

"Nissan's FY2026 outlook reflects external headwinds, including rising raw material costs and geopolitical uncertainty in the Middle East, as well as opportunities from favorable foreign exchange, one-time gains realized in the first quarter and other mitigating factors. Supported by disciplined execution of Re:Nissan, ongoing cost reductions and actions to strengthen competitiveness across key markets, the company reaffirms its FY2026 financial outlook and remains on track to deliver its Re:Nissan commitments," the company said.

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