Nissan posts H1 operating loss, targets full-year breakeven despite challenges

Nissan Motor reported a consolidated operating loss of JPY 27.7 bn for the first half of fiscal year 2025, a deterioration of JPY 60.6 bn from the previous year. Net revenue for the period decreased by 6.8% to JPY 5,578.7 bn. The company attributed the loss to unfavorable foreign exchange rates, US tariffs, and lower income from equity-method companies’ impairments and restructuring costs, partially offset by cost reductions. Consequently, a net loss attributable to owners of parent of JPY 221.9 bn was recorded, leading the board of directors to forgo the fiscal year 2025 interim dividend.

Despite the first-half losses, Nissan reaffirmed its full-year fiscal year 2025 outlook, forecasting net revenue of JPY 11,700.0 bn and an operating loss of JPY 275.0 bn, including tariff impacts. The company aims for an operating profit breakeven excluding tariffs, driven by a cost-savings program targeting JPY 500 bn by FY2026, with JPY 80 bn in fixed cost reductions already achieved in the first half. Nissan also highlighted its robust financial position, with JPY 3.6 trillion in total liquidity, including JPY 2.2 trillion in gross cash as of September.

In a strategic move to optimize assets and support future growth, Nissan announced the sale and leaseback of its global headquarters in Yokohama, expecting to record a gain of JPY 73,905 million from the transaction in fiscal year 2026. This initiative is part of the Re:Nissan plan, which focuses on reducing cost structures, redefining market and product strategy, and reinforcing partnerships.