Sophie Lindqvist

Nissan Motor Co generated an operating profit (profit before interest and tax) of JPY 80 billion (US$501 million) in the first half of FY27, reversing a JPY 28 billion loss a year earlier. Global revenue rose 8.8% year on year to JPY 6,072.0 billion (US$38 billion) for April through September 2026.

Net loss narrowed to JPY 39.7 billion (US$249 million), compared with JPY 221.9 billion. The reversal is substantial, although Nissan remained loss-making after all reported income and costs.

The first-half figures show recovery, not a settled turnaround. Sales grew in the US and Japan, were lower in Europe and fell more than 45% in China. Conflict in the Middle East also raised prices for some raw materials and held back shipments.

Recovery drivers

Management attributed the improvement to ongoing structural improvements and additional cost reductions of JPY 110 billion under Re:Nissan, the company’s cost and operating-improvement programme. The result therefore rests on both operating changes and cost action, rather than broad-based demand alone.

Nissan did not quantify the contribution from each market, product or cost measure. It also did not itemize the charges that left a net loss despite an operating profit. Without those bridges, the reported recovery cannot be separated into recurring margin gains, one-off effects and the scale of remaining costs.

The report also did not specify how much of the JPY 110 billion reduction had been realized within the period or what portion is a recurring annual saving. That omission matters when assessing whether the first-half result reflects a durable profit level.

Liquidity and guidance

Nissan reported approximately JPY 800 billion in available automotive net cash, meaning cash attributed to the automotive business, and JPY 2.2 trillion in cash and cash equivalents, the broader pool of liquid funds. Those balances provide a substantial buffer, although liquidity alone does not establish sustainable earnings.

The company kept its FY27 forecast unchanged at a JPY 200 billion operating profit and automotive net cash above JPY 1 trillion at fiscal year-end. Management has neither raised that target after the first-half recovery nor lowered it despite China weakness, higher input costs and shipment disruption.

The unchanged forecast implies management expects the current cost programme and product cycle to absorb those pressures. Nissan provided no revised assumptions showing how much room the forecast leaves for further deterioration.

What does this change for Nissan’s financial outlook?

It improves Nissan’s starting point for FY27, but it does not materially reduce the risks around the full-year target. The operating profit, reduced net loss and large cash holdings provide more support than a year ago. China’s greater than 45% sales decline, weaker European demand, raw-material inflation and delayed shipments remain the counterweight.

Nissan CEO Ivan Espinosa identified the US and Japan as sources of momentum and China as the central risk. He also expects second-half opportunities from Nissan’s electric-vehicle (EV) offensive in Europe, stating:

“Our first-half results show encouraging momentum across key markets, particularly the US and Japan. China remains our most significant challenge, and we need to remain agile. Re:Nissan is improving our operating performance and cost structure and solid liquidity remains our priority.

In the second half, we expect momentum in Mexico and new opportunities from our EV offensive in Europe. Our focus is clear: build on what is working, respond decisively to changing conditions, and strengthen the fundamentals of the business.”

Product reset and the 2027 decision point

Nissan entered the second half with what it called a strengthened product portfolio. The additions were:

• US: the new Rogue Hybrid.
• Japan: the new Elgrand and Kicks.
• Mexico: the China-made Frontier Pro PHEV, or plug-in hybrid electric vehicle.
• Europe: the new Pixo BEV, or battery electric vehicle.

Nissan said: “further product unveilings, including the Skyline and Patrol in Japan and the Juke EV in Europe, will add fresh appeal to the lineup and reinforce the Nissan brand.” The announcements broaden Nissan’s range of hybrid, plug-in hybrid and battery-electric offerings.

No launch timetable, sales target, pricing or margin contribution accompanied the announcements. The range is broader on paper, but the figures provided do not show whether it can offset the China decline or revive European demand.

Nissan will announce a new business plan in February 2027, setting out the direction for its next phase. That announcement is the next formal checkpoint for management’s strategy; its practical test is whether the cost programme and expanded lineup produce durable profit while China and external cost pressures remain unresolved.