Nissan Motor Co., Ltd.

For the 3 months ended June 30, Nissan sold over 700,000 units and unit sales were almost flat year over year. Consolidated net revenue rose 9.5% year over year to JPY 2.6 trillion in automotive net revenue including eliminations, and operating profit was JPY 77.9 billion, up JPY 157 billion from the prior year. Net income was JPY 3.8 billion versus a loss in the prior-year quarter. Automotive operating loss was JPY 8.3 billion, automotive free cash flow improved to JPY 324 billion, CapEx was approximately JPY 114 billion, and R&D spending was JPY 120 billion. For fiscal 2026, management revised full-year sales volume outlook to 3.15 million units and production outlook to 2.8 million units, while reaffirming revenue of JPY 13 trillion, operating profit of JPY 200 billion, operating margin of 1.5%, and net income of JPY 20 billion.

Ivan Espinosa framed the quarter as proof that Re:Nissan is gaining traction, pointing to stronger retail performance in the U.S. and early signs of recovery in Japan. He emphasized that the company is not chasing volume for its own sake, but rebuilding fundamentals with locally produced, tariff-free, profitable vehicles, especially in North America. He also said Nissan is responding to changing market conditions in China with a faster NEV shift and a more regionalized commercial approach, while working to defend the business against aggressive Chinese OEMs.

George Leondis said Q1 reflected both momentum and a difficult operating backdrop, but highlighted solid unit sales of over 700,000 and near-breakeven automotive profitability despite tariffs and higher raw materials. He cited JPY 35 billion of FX tailwind, JPY 82 billion of Monozukuri savings, and JPY 32 billion of one-time gains in the operating profit bridge, offset by JPY 24 billion of raw material costs and JPY 14 billion of inflation. He also noted net cash of JPY 970 billion at the end of the prior period and more than JPY 2.1 trillion of automotive cash and equivalents, while saying automotive free cash flow should be positive for the full year excluding tariff cash impact.

Analysts pressed on North America’s role in offsetting weakness in China and the Middle East, and management said the U.S. is very important, but refused to give a U.S.-specific volume target or percentage range. Questions on China focused on the sharp outlook change; Ivan said the economy slowed, fuel costs rose because of the Iran war, and the market shifted faster toward NEVs, prompting a more regional sales approach. On the Middle East, George said first-half impact is now expected to be around JPY 20 billion and about 18,000 units, mainly due to logistics costs and lost aftersales business. Management also addressed FX hedging, saying actions were taken earlier in the year and that current rates are favorable, and reiterated that the company has no additional restructuring plans at this time.