Nissan Lost $3.4 Billion, But Its Comeback May Already Be Working

Peaks and Valleys

Nissan is fresh off its financial report for FY2025, and there's reason to be a little bit more optimistic for the Japanese automaker. Of course, it's not all good news, as the company still copped losses worth 533.1 billion yen ($3.376 billion), but on the other hand, there are positive signs towards recovery.

With that, Nissan actually has a positive forecast for FY2026, and the company has even stated that its recovery is "ahead of schedule." It's not out of the woods yet, of course, and the slew of new models must perform exceptionally well to bring the brand back into the green.

The Losses

Before we get to the good news, we'll take a look at the reasons for the losses. The biggest factor that slowed down Nissan's progress was, unsurprisingly, tariffs. On that alone, it cost Nissan a whopping 286 billion yen, or just over $1.8 billion, an amount that could've easily halved the company's losses.

Sales were also down by 5.8%, from 3.346 million units to 3.151 million units. The biggest sales losses came from Japan, with home market sales dropping by 13.5%. Europe was the second-largest loss, with sales down 9.7%.

The market with the smallest decline was North America at 0.9%. Lower sales during FY2025 cost the company another 35 billion yen ($221.7 million). Foreign exchange added to further losses, as did rising raw material costs and inflation.

The Good News

Despite those factors, Nissan reported positive cash flow during the second half of the financial year. It rose by 112 billion yen ($709.5 million), indicating promising signs of early recovery. As a whole, the company reported 58 billion yen ($367.4 million) in operating profit with consolidated revenue at 12 trillion yen ($76 billion).

Nissan also managed to save 200 billion yen ($1.2 billion) in fixed costs and 55 billion yen ($348.4 million) in variable costs. Engineering costs per hour have also been reduced by 18%, and the consolidation of several production sites has saved the company more money.

The Bright Side

So the momentum is there, which is why Nissan's outlook is positive. For FY2026, the company is aiming for net revenue of 13 trillion yen ($82.3 billion), operating profit of 200 billion yen ($1.2 billion), and net income of 20 billion yen ($126.7 million). Those numbers look far better than previous forecasts.

Of course, there are still headwinds. The war in the Middle East isn't helping matters, as well as the oil situation. Tariffs also remain a massive hurdle for Nissan, as they do for everyone else in the car business. With that in mind, Nissan will continue implementing its cost-saving measures by streamlining additional operations to improve efficiency.

The good news is that Nissan won't be facing the challenges of a dated model lineup. There's a lot to look forward to from the brand. The redesigned Juke aims to bring back European customers into its showrooms, while the new-generation Rogue (X-Trail in most markets) will be a key model for the company's sales rally. Redesigned and updated region-specific models are also underway, and more cars from China will be exported to maximize production capacity.

Of course, we're looking forward to the Xterra revival, as well as the rebooted Skyline that will make its way to the U.S. as an Infiniti.

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This story was originally published May 13, 2026 at 4:45 PM.