Nissan swings to Q1 profit as weak yen and cost cuts offset softer sales

Japan's fourth-largest automaker posted operating income of ¥77.889 billion for April-June, far above analyst expectations, while keeping its full-year fiscal 2027 guidance unchanged.

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Summary

Nissan Motor returned to profitability across all profit lines in the first quarter of fiscal 2027, helped by favorable foreign exchange effects from a weak yen and company-wide cost cuts even as global demand and sales volumes softened. Operating income came in at ¥77.889 billion for April-June, compared with an operating loss of ¥79.124 billion a year earlier and well above the ¥7.5 billion median analyst forecast compiled by LSEG. Net revenue rose 9.5% to ¥2.96423 trillion, ordinary income was ¥49.094 billion versus a year-earlier loss of ¥109.231 billion, and net income attributable to parent shareholders reached ¥3.761 billion compared with a loss of ¥115.758 billion. Global auto demand fell 2.1% and Nissan's global retail sales slipped 0.9% to 701,000 units, but foreign exchange and cost-reduction measures improved operating income by about ¥157 billion from a year earlier. The automotive business remained loss-making, posting an operating loss of ¥17.796 billion despite improvement from the prior year, while the sales finance business stayed strongly profitable and supported consolidated earnings. Nissan kept its full-year guidance unchanged at net revenue of ¥13 trillion, operating income of ¥200 billion, net income attributable to parent shareholders of ¥20 billion, and an annual dividend of ¥0 per share. The quarter marked Nissan's fourth straight period of operating profitability, but improving profit in the core automotive segment remains central to meeting its full-year target.

Terms & Concepts
  • Operating income: Profit from a company's main business activities before items such as interest and taxes, used to gauge underlying operating performance.
  • Free cash flow: Cash generated or used after operating and investment spending, a measure of how much cash a business is producing or consuming.
  • Equity ratio: A financial measure showing how much of a company's assets are financed by shareholders' equity rather than liabilities.