Nissan Motor Co. has significantly reduced its full-year operating loss forecast and posted an unexpected third-quarter profit, according to Reuters, signaling that the struggling Japanese automaker's restructuring efforts may be gaining momentum.
The company now projects an operating loss of 60 billion yen ($390 million) for the fiscal year ending March 2026, a substantial improvement from its previous estimate of a 275 billion yen shortfall, Reuters reported Thursday.
Under CEO Ivan Espinosa, Nissan has implemented a comprehensive turnaround strategy that includes reducing its global manufacturing capacity and cutting 15% of its workforce, Reuters said. The automaker has faced years of operational challenges and is working to stabilize its financial position.
For the October-December quarter, Nissan reported a 44% decline in operating profit to 17.5 billion yen, according to Reuters. However, this exceeded analyst expectations, which had forecast an 81 billion yen loss for the period.
The company continues discussions with rival Honda Motor Co. regarding potential collaboration, with current talks primarily centered on cooperation opportunities in North America, Espinosa told an earnings briefing, Reuters reported. Both manufacturers have been affected by U.S. tariffs implemented under the Trump administration.
Last year, Nissan and Honda abandoned merger negotiations that would have created a $60 billion automotive entity, Reuters noted.
Despite the improved operating outlook, Nissan expects to report a net loss of 650 billion yen for the fiscal year, marking its second consecutive annual loss, according to Reuters. Chief Financial Officer Jeremie Papin indicated the company anticipates a 50 billion yen operating loss in the fourth quarter, along with tax-related accounting adjustments and restructuring charges.
Espinosa acknowledged the net loss was "unfortunate, but also expected" given the company's ongoing restructuring, stating that Nissan needs to "reset the clock of the company," Reuters reported.