Nissan Posts Strongest Quarterly Operating Profit in Over a Year as Restructuring Advances

Post by : Bianca Suleiman

Nissan Motor returned to positive territory in the second quarter, reporting an operating profit of 51.5 billion yen ($342 million) for July–September — a 61% rise from 31.9 billion yen a year earlier and well above analysts’ average forecast of a 70.9 billion yen loss.

The recovery was driven by decisive cost reductions and firmer sales in North America. After reporting an operating loss in the first quarter, this is Nissan’s best quarterly outcome since the 90.3 billion yen gain in Q4 FY2023.

Operational Streamlining and Strategic Actions

Nissan is accelerating its global restructuring, cutting production sites from 17 to 10 and planning a workforce reduction of about 15% as part of its turnaround strategy. The company has scaled back Rogue SUV output in Japan due to a chip shortage linked to Dutch supplier Nexperia and will halt production at the COMPAS plant in Mexico at the end of November.

As part of its balance-sheet reshaping, Nissan completed a 97 billion yen sale-and-leaseback of its global headquarters in Yokohama to enhance liquidity.

Prospects Remain Challenging

Despite the quarter’s improvement, Nissan kept its forecast for a 275 billion yen operating loss through March 2026, pointing to continued U.S. tariff effects and global supply-chain risks.

The latest performance suggests that disciplined cost control, rationalised production and a product-focused approach could help stabilise results in the latter half of the fiscal year, even as economic and trade headwinds persist.