Post by : Badri Ariffin

Nissan Motor has clawed back to profitability in the second quarter, posting its strongest quarterly performance in more than a year. The Japanese automaker recorded an operating profit of 51.5 billion yen ($342 million) for July-September, a 61% jump from 31.9 billion yen a year ago, defying analysts’ expectations of an average 70.9 billion yen loss.

The turnaround comes on the back of aggressive cost-cutting measures and stronger sales in North America. After a first-quarter operating loss, this marks Nissan’s best single-quarter result since the 90.3 billion yen profit in Q4 FY2023.

Streamlined Operations and Strategic Moves

Nissan is deepening its global restructuring efforts, reducing manufacturing plants from 17 to 10 and trimming 15% of its workforce as part of a broad turnaround plan. The automaker is also adjusting production of its best-selling Rogue SUV in Japan due to a shortage of chips from Dutch supplier Nexperia and will halt production at the COMPAS plant in Mexico at the end of November.

Adding to its strategic moves, Nissan concluded a 97 billion yen sale-and-leaseback deal for its global headquarters in Yokohama, strengthening its financial flexibility.

Outlook Remains Challenging

Despite the Q2 bounce, Nissan maintains its forecast for a 275 billion yen annual operating loss through March 2026, citing ongoing U.S. tariff impacts and global supply chain risks.

The recent performance suggests that Nissan’s focus on cost discipline, rationalized production, and product-led growth could pave the way for more stability in the latter half of the fiscal year, even amid broader economic and trade pressures.

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