Nissan Returns to Profitability with Strong North American Sales Performance

Nissan Returns to Profitability in Q2 Amid Turnaround Efforts

YOKOHAMA, Japan — Nissan Motor reported a return to operating profit in its second quarter, delivering its strongest quarterly performance in over a year as the Japanese automaker’s restructuring initiatives begin to gain traction.

The company posted an operating profit of 51.5 billion yen ($342 million) for the three months ending September 30, representing a 61% increase from the 31.9 billion yen recorded in the same period last year. The results significantly outperformed analyst expectations, which had predicted an average loss of 70.9 billion yen, according to a survey of five analysts conducted by LSEG.

This positive result follows an operating loss in the first quarter and marks Nissan’s best quarterly performance since achieving a 90.3 billion yen profit in the final quarter of fiscal year 2023. The company’s half-year results received additional support from one-time benefits, including reduced expenses related to U.S. emissions compliance.

 Turnaround Strategy Shows Progress

CEO Ivan Espinosa expressed confidence in the company’s trajectory during a briefing, noting that Nissan anticipates stronger performance in the second half of the fiscal year driven by new product launches and sustained momentum from the second quarter.

“We remain on track for operating profit to break even, excluding the tariff impact,” Espinosa stated. “It’s a transition year, so absolute numbers are not great. But relative to what we said, we are on track.”

The results emerge as Nissan advances an ambitious restructuring plan that includes consolidating its global manufacturing footprint from 17 sites to 10 and reducing its workforce by 15%.

Despite the quarterly gains, Nissan maintained its previously announced forecast of a 275 billion yen annual operating loss for the fiscal year ending March 2026, citing anticipated impacts from U.S. tariffs and ongoing supply chain challenges, particularly concerning Nexperia chip availability.

Regional Performance Varies

North America emerged as a bright spot in Nissan’s second-quarter performance. Espinosa attributed the strong sales to targeted marketing campaigns for locally manufactured vehicles, streamlined dealer programs, and a strategic pivot toward retail customers rather than fleet sales.

However, the Japanese domestic market presented challenges, with retail sales declining 16.5% during the first half. Espinosa acknowledged that consumer concerns about the company’s financial stability had dampened sales, though he noted improving sentiment fueled by robust demand for the new Roox “kei” model.

Operational Adjustments Continue

Supply chain constraints continue to affect production plans. According to a source familiar with the situation, Nissan will reduce production of its best-selling Rogue SUV in Japan starting next week due to chip shortages from Dutch supplier Nexperia.

Additionally, the automaker announced it will cease production at the COMPAS facility in Mexico—a joint venture with Mercedes-Benz—at the end of November.

In a separate move to improve its financial position, Nissan disclosed Thursday that it has completed a 97 billion yen sale-and-leaseback transaction for its global headquarters in Yokohama, Reuters reported.

*Exchange rate: $1 = 150.78 yen*​​​​​​​​​​​​​​​​
Source:Reuters, Nov 6, 2025