CRC Credit Research Compendium
Menu
日本語English

Issuer Credit Research

Issuer Flash: Nissan Motor

Issuer Flash: Nissan Motor

Report date: 2026-05-13
Event date: 2026-05-13
Event title: FY2025 Results

1. Flash Conclusion

Nissan Motor's full-year results for FY2025, ending March 2026, largely confirmed the "short-term credit floor improvement" indicated in the upwardly revised outlook on April 27. Consolidated revenue was ¥12.0079 trillion, operating profit ¥58 billion, and net loss attributable to owners of the parent ¥533.1 billion. Automotive business free cash flow for the full year was negative ¥480.8 billion, but the second half generated a positive ¥112 billion, and automotive net cash stood at ¥1.1704 trillion at March 2026-end, thereby confirming the year-end liquidity position that had remained unverified in the May 11 issuer summary.

However, the credit view is limited to noting that "the short-term defensive line in the restructuring credit has improved." FY2025 operating loss on a vehicle & eliminations basis was ¥239.9 billion, and the quality of operating profit includes contributions from financial services, one-offs, and working capital improvement. The FY2026 company guidance anticipates recovery to ¥13 trillion in revenue, ¥200 billion in operating profit, and ¥20 billion in net profit, implying an operating margin of only 1.5%. It remains to be verified whether this can be achieved while absorbing U.S. tariffs, inflation, raw material costs, and competitive pressures in North America and China.

2. What Was Announced

On May 13, 2026, Nissan announced its FY2025 consolidated results. Revenue was ¥12.0079 trillion, down 4.9% year-on-year; operating profit was ¥58 billion, down 16.9%; and net loss attributable to owners of the parent was ¥533.1 billion. Relative to the revised April 27 outlook, both operating profit and net loss came in slightly better.

Metric FY2025 Actual April 27 Revised Outlook Credit Takeaway
Consolidated Revenue ¥12.0079 tn ¥12 tn Largely in line; unit sales fell 5.8% YoY, scale recovery remains weak
Consolidated Operating Profit ¥58 bn ¥50 bn Positive outcome provides short-term reassurance; margin only 0.5%
Net Loss Attributable to Owners -¥533.1 bn -¥550 bn Loss smaller than expected, but restructuring costs and low profitability persist
Automotive Business FCF -¥480.8 bn Second half expected positive Full-year deficit remains, but H2 +¥112 bn indicates slower cash outflow
Automotive Net Cash ¥1.1704 tn >¥1 tn Year-end snapshot maintains liquidity cushion

By segment, FY2025 vehicle & eliminations revenue was ¥10.6899 trillion, operating loss ¥239.9 billion, and free cash flow -¥480.8 billion. Financial services contributed revenue of ¥1.318 trillion and operating profit of ¥297.9 billion, supporting consolidated operating profit. Consistent with prior views, Nissan remains a complex credit entity requiring simultaneous "vehicle business restructuring" and "continued financial services market funding."

For FY2026, the company forecasts 3.3 million units sold, ¥13 trillion in revenue, ¥200 billion in operating profit, and ¥20 billion in net profit attributable to owners. The operating margin is expected to improve from FY2025's 0.5% to 1.5%, although U.S. tariffs, inflation, raw material costs, and the reversal of FY2025 one-offs will remain headwinds.

3. Credit Read-Through

The most credit-relevant aspect of this announcement is the confirmation of year-end liquidity and net cash in line with the April outlook. Automotive net cash at March 2026-end was ¥1.1704 trillion, automotive cash and deposits ¥2.1721 trillion, and undrawn committed lines ¥2.3116 trillion, reinforcing the existing view that near-term default need not be the base scenario.

However, liquidity improvement should not be conflated with structural credit enhancement. Automotive free cash flow turned positive in H2, but full-year FCF remained negative at ¥480.8 billion, worse than FY2024's -¥242.8 billion. Q4 automotive FCF of +¥210.6 billion benefited from significant working capital inflows, including inventory, and does not equate to sustainable pricing power or product competitiveness.

The FY2026 outlook is positive but does not yet prove credit improvement. Achieving operating profit of ¥200 billion and net profit of ¥20 billion would materially support ratings and market access, yet a 1.5% operating margin remains thin for a finished vehicle manufacturer. The company has indicated FY2026 automotive operating profit and FCF are pre-tariff positive, but the credit effect of the restructuring cannot be judged until actual post-tariff performance is observed.

4. What To Watch Next

  1. Monitor FY2026 Q1 for whether automotive operating profit and FCF improve on a post-tariff basis. Critical is not the guidance figure itself but the improvement in sales quality and margins across North America, China, Japan, and Europe.

  2. Track net cash and liquidity cushions. March 2026-end automotive net cash of ¥1.1704 trillion is reassuring, but overlapping structural reform costs, capex, working capital, and financial services funding could erode the FCF position if H2-style working capital inflows are relied upon.

  3. Observe rating agency reactions. While the results alleviate short-term liquidity concerns, profitability and FCF improvement in the core automotive business remain weak by the standards of overseas agencies. Monitoring Moody's, S&P, Fitch, and R&I for how they view the FY2026 guidance will be key.

5. Sources

Primary sources used in this flash:

6. Unverified / Pending