Returned to Operating Profit
Consolidated operating profit of JPY 58 billion in FY2025, ahead of expectations, driven by Re:Nissan cost actions and one-time benefits.
Second-Half Cash Flow Turnaround
Automotive free cash flow turned positive in H2 FY2025 to JPY 112 billion after a full-year negative result; management expects automotive free cash flow to be positive before tariffs in FY2026.
Strong Balance Sheet Starting Point
Net cash at fiscal year-end stood at JPY 1.17 trillion, and management expects net cash to remain above JPY 1 trillion at the end of FY2026.
Material Cost and CapEx Discipline
CapEx reduced by 13.5% year-over-year and R&D spending reduced by 9.1% year-over-year with no significant cuts to R&D programs; raw material cost rise was limited (JPY +5 billion) and largely offset by cost actions.
Substantial Cost Savings from Re:Nissan
Fixed cost savings of JPY 200 billion and variable cost savings of JPY 55 billion delivered in FY2025; monozukuri (manufacturing) savings reached JPY 227 billion; manufacturing cost improvement of JPY 340 billion targeted for FY2026.
Clear FY2026 Growth Outlook
Guidance for FY2026: unit sales up 4.7% to 3.3 million, production targeted at 2.95 million units, revenue guidance JPY 13 trillion and operating profit outlook JPY 200 billion (1.5% margin).
Operational Progress and Product Rollouts
Progress on footprint consolidation (17 -> 10 sites planned), announced 7 site actions within 10 months with 6 consolidations to be completed this year; R&D engineering cost per hour down 18% (target 20%); multiple regional product launches (e.g., Sentra, Qashqai e-POWER, MICRA EV, Roox, N7).