Nissan returns to quarterly profit on cost-cutting and stronger sales

Nissan returned to profit in the first quarter, supported by cost-cutting measures and stronger sales in key markets. The Japanese automaker maintained its annual profit forecast despite challenges in China, higher material costs, US tariffs and disruptions caused by the recent Japan earthquake

Tokyo: Nissan Motor Corp reported Monday that it returned to profit in the first quarter of the year, helped by cost-cutting measures and improved sales in some markets.

Nissan, based in the port city of Yokohama, said it recorded a 3.8 billion yen (USD 24 million) net profit in January-March, a reversal from the 115.8 billion yen loss it recorded in the same period of 2025.

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Quarterly sales totalled 2.96 trillion yen (USD 19 billion), up 9.5 per cent from 2.7 trillion yen a year earlier.

Nissan has been in the red for the last two fiscal years, posting billions of dollars in losses, but its leadership has promised to return it to profit in this fiscal year, which ends in March 2027.

Chief Executive Ivan Espinosa told reporters cost reduction efforts were gaining momentum. However, challenges remain in some global markets such as the Middle East, while sales were growing in the US and Japan, he said.

“We are managing disruption where it exists, building momentum where we see opportunity,” Espinosa said.

The war in Iran has recently effectively closed the Strait of Hormuz, a key route for Japan’s exports to the Middle East.

Nissan’s sales have suffered in China because of fierce competition from Chinese automakers that have taken the lead in electrification.

The maker of Leaf electric vehicles and Infiniti luxury models lowered its annual sales projection to 3.15 million vehicles, on a par with the previous year and down from an earlier forecast of 3.3 million units, largely because of the problems in China.

Nissan is allied with Renault SA of France and Mitsubishi Motors Corp of Japan and also has a partnership with Japanese rival Honda Motor Co, sharing technology and some parts.

Espinosa said production lines were partially stalled due to the magnitude 7.1 earthquake that struck Kumamoto, southwestern Japan, last week. However, no employees were hurt and no facilities, including those of Nissan’s partners, were damaged.

The disruption is expected to last until Wednesday and affect 5,000 vehicles, he said.

In the US, Japanese automakers are dealing with the negative impact of tariffs imposed by President Donald Trump. After negotiations, the tariffs were lowered to 15 per cent from an initial 27.5 per cent. They remain higher than the earlier 2.5 per cent rate.

Higher material costs are another challenge.

Nissan stuck to its earlier forecast of a 20 billion yen (USD 127 million) profit on 13 trillion yen (USD 83 billion) in sales in this fiscal year.

“Our focus is unchanged: Creating value for customers, improving profitability and free cash flow, and building a stronger, more resilient Nissan for the long term,” Espinosa said.