Nissan Motor (7201) investor relations material

Executive summary

• FY 2025 saw a 5.8% decline in global unit sales to 3.15 million, with notable drops in Japan and Europe, but China showed resilience in H2 due to new model launches; North America remained stable.

• Net revenue decreased to ¥12,007.9 billion, with operating profit at ¥58.0 billion (0.5% margin), and a net loss of ¥533.1 billion due to impairments and restructuring.

• Cost reduction initiatives exceeded targets, with fixed cost savings above ¥200 billion and variable cost savings of ¥55 billion.

• Positive automotive free cash flow in H2, with auto net cash at ¥1.17 trillion at year-end.

• The Re:Nissan Plan drove cost reductions, manufacturing consolidation, and a shift to a more resilient operational model.

Financial highlights

• Automotive net revenue was ¥10.7 trillion; operating loss of ¥250 billion including tariff impacts.

• Free cash flow for the full year was -¥480.8 billion, but turned positive in H2 to ¥112 billion.

• Net cash at year-end stood at ¥1.17 trillion; cash and cash equivalents at ¥2.17 trillion.

• CapEx reduced by 13.5% YoY and R&D spending by 9.1% without major project cuts; R&D expenses at ¥562.5 billion.

• Foreign exchange was a ¥21.7 billion headwind; raw material costs rose by ¥5 billion.

Outlook and guidance

• FY 2026 retail sales expected to rise 4.7% to 3.3 million units, with revenue projected at ¥13 trillion and operating profit at ¥200 billion (1.5% margin).

• Net income projected to turn positive at ¥20 billion.

• Automotive operating profit and free cash flow expected to be positive before tariffs; net cash to remain above ¥1 trillion.

• Tariff burden expected to improve by ¥30 billion, but inflation and raw material costs remain headwinds.

• No annual dividend anticipated for FY2026.