Nissan's Positive Shift in Profit Outlook#
Shares of Nissan Motor Co experienced a significant increase on Tuesday after the company announced a new forecast for its full-year operating profit. This marks a turnaround from its earlier prediction of a loss, driven by regulatory changes and cost-cutting measures.
New Profit Expectations#
On Monday, Nissan revealed that it now anticipates an operating profit of 50 billion yen for the fiscal year ending in March 2026. This is a notable improvement from its previous forecast, which estimated a loss of 60 billion yen made in February. Following this announcement, Nissan's shares rose as much as 6.5%, reaching 373.7 yen, before settling at a 4% increase at 364.9 yen by 01:20 GMT.
Factors Behind the Improvement#
The company credits this positive outlook primarily to a one-time benefit from recent changes to U.S. emissions regulations. Additionally, ongoing cost reductions and favorable movements in foreign exchange rates have contributed to this improved forecast.
Nissan also slightly raised its revenue expectations to 12 trillion yen from the earlier estimate of 11.9 trillion yen, benefiting from favorable currency conditions. Furthermore, the company expects its net loss to decrease to 550 billion yen, down from a prior estimate of 650 billion yen.
Future Financial Health#
Looking ahead, Nissan is optimistic about its financial health. The company anticipates that its automotive free cash flow will turn positive in the second half of the fiscal year, with automotive net cash projected to exceed 1 trillion yen by the end of the year. This indicates a strengthening balance sheet for the automaker.
Nissan is set to report its full-year results on May 13.