Nissan profit surges 61% on cost cuts and demand

Nissan Motor posted a stronger‑than‑expected operating profit for the July–September quarter, reporting 51.5 billion yen (about $342 million), a 61% rise from a year earlier and a clear beat versus analysts’ average forecast of a loss. The quarterly improvement reflects progress under the automaker’s Re:Nissan turnaround plan, driven by cost reductions, a healthier vehicle mix and steady demand for newer models such as the Ariya electric SUV and the X‑Trail hybrid. Nissan cited improved profitability in North America and Asia and said tighter pricing discipline and product focus helped margins.

Operational measures underpinning the recovery include factory consolidations, workforce reductions—around 15% of the global workforce has been cut so far—and plans to shrink manufacturing sites from 17 to 10 by 2027. Management emphasized that these structural moves, combined with efforts to prioritize profitable segments over sheer volume, are beginning to yield results. Chief Executive Makoto Uchida described the quarter as evidence the strategy is taking hold while warning that the turnaround remains fragile amid persistent external risks.

Despite the quarterly gain, Nissan kept its full‑year forecast unchanged, continuing to expect an operating loss of roughly 275 billion yen for the fiscal year ending March 2026. The company pointed to several headwinds: newly imposed tariffs on some Japanese vehicle exports to the U.S., ongoing semiconductor shortages, weaker demand for electric vehicles in China, supply‑chain bottlenecks and rising material costs. These factors, Nissan said, could hinder the pace of recovery and complicate production planning.

Market reaction was cautiously positive: shares in Tokyo ticked up modestly on the news as investors welcomed better‑than‑expected results and visible progress on cost management. Analysts described the rebound as encouraging but urged caution, noting that sustaining profitability will hinge on how effectively Nissan navigates trade pressures, stabilizes supply chains and maintains momentum in its EV rollout. The company’s ability to translate one quarter of improvement into consistent earnings will be watched closely by investors and industry observers.

The interim performance offers a measure of validation for Nissan’s restructuring but leaves intact substantial challenges. Management reiterated its commitment to disciplined execution of Re:Nissan, balancing near‑term profit repair with longer‑term investments in electrification and competitiveness, while stress‑testing assumptions against evolving market conditions.