Nissan Motor Corp. has returned to profitability in the latest quarter, reporting a net profit of 3.8 billion yen (approximately $24 million) as cost-cutting measures and stronger sales in key markets reversed a sharp loss recorded a year earlier.
The Yokohama-based automaker had posted a loss of 115.8 billion yen in the same period of 2025, underscoring the scale of its turnaround. Quarterly sales climbed 9.5% to 2.96 trillion yen (about $19 billion), up from 2.7 trillion yen a year earlier.
The results mark a notable shift for a company that has spent the last two fiscal years deep in the red, accumulating billions of dollars in losses. Nissan’s leadership has pledged to restore full-year profitability by the close of the current fiscal year, which ends in March 2027.
Chief Executive Ivan Espinosa said cost reduction efforts were gaining momentum, with growth in the United States and Japan offsetting weakness elsewhere. “We are managing disruption where it exists, building momentum where we see opportunity,” he said.
Despite the recovery, the company flagged significant headwinds abroad. Sales in the Middle East have been strained by regional instability, including recent disruption to the Strait of Hormuz, a critical shipping route for Japanese exports to the region.
China remains an even greater concern. Intense competition from domestic manufacturers, which have moved ahead in electric vehicle development, has steadily eroded Nissan’s position in the world’s largest auto market. The pressure reflects broader difficulties facing foreign carmakers amid a shifting Chinese economic landscape.
Citing those challenges, Nissan lowered its annual sales projection to 3.15 million vehicles, roughly level with the prior year and down from an earlier forecast of 3.3 million units. The maker of Leaf electric vehicles and Infiniti luxury models had earlier committed to substantial investment in the Chinese market to defend its footing.
Nissan remains allied with Renault SA of France and Mitsubishi Motors Corp. of Japan, and maintains a technology-sharing partnership with domestic rival Honda Motor Co. Those alliances are expected to play a growing role as the company navigates rising costs and fierce competition.
The path ahead will hinge on whether Nissan can sustain its cost discipline while stabilizing demand in China and weathering geopolitical volatility across the Middle East.