Nissan forecasts $4.2 billion annual loss amid restructuring
Nissan said it expects a net loss of 650 billion yen, or about $4.2 billion, for the fiscal year ending in March as the Japanese automaker grapples with US tariffs and an extensive global restructuring program. The company also reported a 44 percent drop in third quarter operating profit to 17.5 billion yen compared with the same period a year earlier.
The projected annual loss is roughly double the estimate of analysts surveyed by Bloomberg, underscoring the scale of Nissan’s financial strain. At the same time, the company sharply reduced its forecast for full year operating losses to 60 billion yen from the 275 billion yen projected in late October, citing faster progress on cost cutting initiatives.
Restructuring costs weigh on results
Chief executive Ivan Espinosa said restructuring inevitably brings additional expenses as the company attempts to reset its operations. He described the financial hit as part of a broader effort to restore long term stability.
Under its recovery plan, known as Re Nissan, the automaker intends to reduce its global manufacturing footprint from 17 plants to 10 by March 2028 and eliminate 20,000 jobs worldwide. The company has also shortened research and development timelines and streamlined its supply chain in an effort to improve efficiency.
Despite these measures, third quarter performance remained under pressure. Revenue declined 5 percent year on year to 2.999 trillion yen, and the company posted a quarterly net loss of 28.3 billion yen. For the full fiscal year, Nissan expects revenue to fall 5.8 percent to 11.9 trillion yen.
US tariffs add pressure
US tariffs have significantly affected Nissan’s earnings. Japanese vehicles faced duties of up to 27.5 percent before a trade agreement reached in July reduced the rate to 15 percent, though the lower tariff only took effect in mid September. The company said tariffs had a negative impact of 82.3 billion yen in the third quarter alone.
Espinosa acknowledged that trade measures introduced under President Donald Trump continue to create challenges, but he said the restructuring program is beginning to show results. Nissan is targeting a return to operating profitability by fiscal year 2026.
Failed Honda merger clouds outlook
Nissan’s outlook remains uncertain following the collapse of merger talks with Honda in February 2025. The proposed tie up would have created the world’s third largest automaker. Discussions broke down after Honda suggested making Nissan a subsidiary rather than pursuing a merger between equals.
The breakdown left Nissan to pursue its turnaround independently as it confronts weakening earnings, trade headwinds and a competitive global auto market.
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