The old adage that you can’t cut your way to profitability doesn’t apply to Nissan apparently as the Japanese automaker revised its 2025 fiscal year earnings forecast from a $377 million loss to a $314 million operating profit by cutting and controlling costs and favorable exchange rates.
The company’s 2025 fiscal year ended March 31, 2026, and Nissan’s full year results will be released May 13.
The company expects its full year revenue to be slightly higher than previously predicted, moving from $74.7 billion up to $75.3 billion. However, the company is still going to be in the red, but less so, predicting a full-year net loss $3.45 billion compared to the $4.1 billion originally forecast, reported Automotive News.
Officials also noted that automotive free cash flow is expected to be positive in the second half, as planned. Automotive net cash is forecasted to exceed $6.3 billion at year‑end, reflecting a strong 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,” officials said in a release.
Nissan noted the company’s global sales fell during the fiscal year by 4.2 percent compared to previous period, including a 7 percent drop in March. The company took its biggest hit in Japan where sales fell 13.5 percent. Overall outside Japan, sales fell 2.7 percent, with Mexico being the big exception where sales rose 6.8 percent. Other positive results came in Canada and China.
Nissan’s at the start of a three-year recovery plan implemented by new CEO Ivan Espinosa. Dubbed “Re: Nissan,” it’s counting using AI to refocus its global vehicle portfolio, which is going to shrink from 56 vehicles to 45 vehicles. The company plans to eliminate the “low performers” from its lineup in the near term.
While AI is central to Nissan’s plans to continue its recovery, how it plans to deliver product to buyers centers on new portfolio approach with four categories or models: Heartbeat, Core, Growth, and Partner.
[Images: Nissan]
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