Nissan Motor Co., Ltd. has reported a return to operating profit in the third quarter of FY2025, prompting an upgrade to its full-year outlook even as the carmaker remains on track for a significant net loss.
For the three months to December 2025, Nissan posted an operating profit of 17.5 billion yen, marking a turnaround from losses earlier in the year. On a year-to-date basis, however, the company remains in the red, recording an operating loss of 10.1 billion yen across the first nine months of the financial year.
Global sales totalled 2.26 million vehicles over the nine months, led by the US and China. Revenue fell to 8.6 trillion yen, reflecting softer volumes and continued pricing pressure, conditions that also affect right-hand-drive markets such as Australia.
Cost cuts, not demand growth, driving improvement
Nissan’s third-quarter improvement was driven primarily by cost-reduction measures, rather than a recovery in sales momentum. Progress in fixed-cost reductions and manufacturing efficiencies helped offset weaker volumes and the impact of tariffs.
Despite the quarterly turnaround, net income for the nine months fell to –250.2 billion yen, largely due to restructuring costs and lower earnings from equity-accounted businesses, including its China joint venture.
The automaker said it ended December with 3.6 trillion yen in total liquidity, including 2.1 trillion yen in cash, providing financial headroom as restructuring efforts continue.
Full-year outlook raised, net loss remains
Nissan has revised its FY2025 operating profit forecast to –60 billion yen, a substantial improvement from its previous –275 billion yen estimate. Expected net revenue has been lifted to 11.9 trillion yen, with global sales forecast at 3.2 million vehicles.
However, the company still expects a full-year net loss of 650 billion yen, driven mainly by non-cash accounting charges linked to restructuring activities.
For Australian buyers, the outlook upgrade is unlikely to translate into immediate changes in local pricing or model availability, with Nissan’s recovery still heavily reliant on cost discipline rather than volume growth.
Factory consolidation underway
Under its Re:Nissan recovery program, the carmaker is pressing ahead with structural changes, including:
- Consolidation of seven global production sites
- More than 160 billion yen in fixed-cost savings already delivered
- A target of 250 billion yen in fixed-cost reductions by FY2026
Nissan has also identified up to 240 billion yen in variable cost savings, which are now moving into implementation.
While the company continues to flag investment in new and updated models, the latest results suggest financial stabilisation is being driven by restructuring first, with product-led growth expected to follow rather than lead the recovery.
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