Nissan Shares Rally as Restructuring Cushions U.S. Tariff Impact

The Japanese automaker’s stock climbed as much as 11% on Friday, eventually settling 7.5% higher at 441.7 yen. The rally followed a Thursday report showing an operating profit of 17.5 billion yen ($114.6 million) for the quarter ending in December. This performance came despite a heavy 82.3 billion yen drag caused by U.S. tariffs, which Nissan mitigated through aggressive internal cost reductions.

Chief Executive Ivan Espinosa characterized the results as a turning point, suggesting that drastic restructuring moves are finally providing a foundation for stability. While the company still faces significant challenges, the ability to maintain profitability under tariff pressure has bolstered investor confidence. Nomura analyst Toshihide Kinoshita noted that while sales volume recovery remains uncertain, the tangible benefits of Nissan's turnaround strategy are now visible in the balance sheet.

Improved Fiscal Outlook

Nissan also revised its full-year guidance, painting a less dire picture than previously anticipated. The company now expects an operating loss of 60 billion yen for the fiscal year ending in March, a substantial improvement from its earlier projection of a 275 billion yen loss. Revenue estimates were also nudged upward to 11.9 trillion yen. However, a projected annual net loss of 650 billion yen remains on the books, primarily due to non-cash charges tied to its massive overhaul.

To achieve long-term viability, Nissan is executing a multi-year downsizing plan that includes:

• Cutting 20,000 jobs globally through March 2028.
• Reducing annual production capacity outside China by nearly 30%.
• Consolidating manufacturing sites from 17 down to 10.