Nissan Revises 2025 Earnings Forecast: $314M Profit After $377M Loss Prediction

Nissan has defied the adage that you can’t cut your way to profitability by revising its 2025 fiscal year earnings forecast from a $377 million loss to a $314 million operating profit. The Japanese automaker achieved this turnaround through aggressive cost cutting, stringent cost controls, and favorable exchange rates.

The 2025 fiscal year for Nissan concluded on March 31, 2026. The company’s full-year results will be officially released on May 13. Nissan also revised its revenue forecast upward, increasing it from $74.7 billion to $75.3 billion.

Despite the improved outlook, Nissan still anticipates a full-year net loss, though a reduced one. The company now expects a net loss of $3.45 billion, down from the previously forecasted $4.1 billion, according to Automotive News.

Nissan officials highlighted additional positive financial indicators, including expectations for positive automotive free cash flow in the second half of the fiscal year. The company also forecasted that its automotive net cash would exceed $6.3 billion by year-end, reflecting a robust cash position.

"The improvement mainly reflects a one-time positive impact from changes to U.S. emissions regulations, along with ongoing cost reductions and favorable foreign exchange effects."

Nissan reported a 4.2% decline in global sales for the fiscal year compared to the previous period. This included a 7% drop in March. The company experienced its most significant sales decline in Japan, where sales fell by 13.5%. Outside Japan, sales decreased by 2.7%, with the exception of Mexico, where sales rose by 6.8%. Other regions, including Canada and China, also showed positive results.

Nissan is at the outset of a three-year recovery plan spearheaded by new CEO Ivan Espinosa. Dubbed “Re: Nissan,” the plan leverages AI to refocus the company’s global vehicle portfolio, which will shrink from 56 vehicles to 45 vehicles. The company intends to phase out underperforming models in the near term.

While AI is a cornerstone of Nissan’s recovery strategy, the company’s product delivery approach revolves around a new portfolio strategy divided into four categories: Heartbeat, Core, Growth, and Partner.