Log In Get Started
Stock Markets April 27, 2026 07:01 AM

Nissan lifts full-year outlook to ¥50 billion profit after reversing U.S. GHG provision

Automaker says one-off reversal, cost measures and FX moves turn a projected ¥60 billion loss into a ¥50 billion operating profit for year ending March 2026

By Nina Shah
Nissan lifts full-year outlook to ¥50 billion profit after reversing U.S. GHG provision

Nissan Motor Co. updated its full-year operating forecast, moving from a projected ¥60 billion loss to an expected ¥50 billion profit for the fiscal year ending March 2026. The company announced the revision after markets closed on April 27, attributing the swing mainly to a reversal of provisions tied to U.S. greenhouse gas regulations, alongside cost-reduction actions and favourable foreign exchange movements. Nissan will publish a detailed breakdown when it reports results on May 13. Citi said the one-time GHG impact may have been larger than it previously assumed.

Key Points

  • Nissan upgraded its full-year operating forecast to a ¥50 billion profit from a previously expected ¥60 billion loss for the fiscal year ending March 2026.
  • The company cited a reversal of provisions related to U.S. greenhouse gas regulations, cost reduction measures, and favourable foreign exchange movements as the drivers of the revision.
  • Nissan will present a detailed breakdown of these factors when it reports results on May 13; Citi said the one-time GHG impact may have been larger than it initially modelled.

Nissan Motor Co. has revised its operating forecast for the fiscal year ending March 2026, saying it now expects an operating profit of ¥50 billion rather than the earlier forecast of a ¥60 billion operating loss. The change was announced after markets closed on April 27.

The company cited three drivers for the improved outlook: a reversal of provisions related to U.S. greenhouse gas (GHG) regulations, cost reductions and favourable movements in foreign exchange rates. Nissan indicated the one-off reversal tied to the U.S. GHG regulations appears to be the principal contributor to the shift from a loss to a profit.

Nissan said it will provide a full breakdown of the items behind the revised forecast when it releases its results on May 13. That disclosure is expected to clarify the relative weight of the one-time provision reversal versus ongoing operational improvements such as cost cuts and FX effects.

Market commentary followed the announcement. Citi noted that it had earlier modelled a one-time GHG-related impact of ¥50 billion and had expected Nissan to record an operating loss of ¥10 billion for the period. Citi observed that the actual one-time impact may have exceeded its prior assumptions, a comment that underscores uncertainty about the precise size and accounting treatment of the reversal.

The company’s move to upgrade its forecast reflects an interplay of a material one-off accounting adjustment and management actions on costs, with currency movements providing additional support. Nissan’s May 13 results presentation will be the next scheduled opportunity for investors and analysts to see the underlying numbers and the company’s detailed explanation of the drivers.

Context and next steps

With the results announcement scheduled for May 13, market participants will be looking for the detailed line-item disclosure that explains how much of the forecast improvement is attributable to the U.S. GHG provision reversal versus recurring items such as cost reductions or FX gains. Citi’s comment that the one-time impact may have been larger than expected highlights a key area of near-term uncertainty.

Risks

  • Uncertainty over the magnitude and accounting of the one-time reversal tied to U.S. GHG regulations - the exact size will be clarified only when Nissan issues its detailed results on May 13.
  • Reliance on a one-off provision reversal to move from a projected loss to a profit - this raises the question of how much of the improvement reflects recurring operational progress versus non-recurring items.
  • Foreign exchange movements that have helped the forecast could reverse in future reporting periods, affecting operating results and comparability.

More from Stock Markets

Customers Bank Engages OpenAI Engineers to Automate Lending and Onboarding Apr 27, 2026 Compass Therapeutics Shares Collapse After Mixed COMPANION-002 Results Apr 27, 2026 FDA Grants Breakthrough Therapy Designation to TERN-701 for Certain Chronic Myeloid Leukemia Patients Apr 27, 2026 AbbVie Seeks FDA Clearance for Subcutaneous Induction Dosing of SKYRIZI in Crohn’s Disease Apr 27, 2026 HawkEye 360 Opens IPO Roadshow, Seeks Up to $416 Million Apr 27, 2026