Nissan Projects 4.8 Billion USD Net Loss for Fiscal 2025—Its Largest Deficit Ever
Nissan Motor Company announced that it would record a consolidated net loss of up to 750 billion JPY (approximately 4.8 billion USD) for the fiscal year ending March 2025. This marks a dramatic reversal from a net profit of 426.6 billion JPY (approximately 2.7 billion USD) the previous year, primarily due to an impairment loss of around 500 billion JPY (approximately 3.1 billion USD) following a revaluation of asset values at its factories in North America and Japan.
Following the announcement, Nissan’s stock price on the Tokyo Stock Exchange rose by 4% on April 25, 2025, closing at 341.30 JPY (approximately 2.19 USD). Nikkei Automotive analyzed the stock surge as a result of expectations that the worst may have already been priced in or that the worst phase has passed.
However, cautious views regarding Nissan’s recovery path remain dominant. For the fiscal year ending March 2025, Nissan’s consolidated operating profit fell 85% year-over-year to 85 billion JPY (approximately 544 million USD), 35 billion JPY (approximately 224 million) lower than its previous forecast. Nissan’s current price-to-book ratio (PBR) stands at 0.2 times, the lowest among Nikkei index-listed companies.
Nissan’s announcement of its largest-ever net loss symbolizes deeper structural issues, not merely a one-off event. Although the impairment loss is a non-cash factor, it points to a weakening competitiveness in Nissan’s global production network. North America, once a core profit center for Nissan, has seen a continuous decline in market share in recent years due to weakening competitiveness and aging models.
It is notable that factory asset revaluation issues are spreading across the automotive industry. Ford, earlier in 2025, recorded asset impairment losses as it scaled back production plans at some North American plants, while Volkswagen also announced reductions and restructuring plans for its European factories. As major global automakers move to reorganize inefficient production structures, Nissan, too, is undergoing such a restructuring process.
However, Nissan faces a more fundamental challenge beyond simply improving profitability: restoring brand value. Although Nissan recently unveiled a new electrification strategy and next-generation platform development plan, it will take time for these initiatives to materialize. Nissan has announced the launch of next-generation electric vehicle models after the second half of 2025, but with global EV demand slowing and competition intensifying, success is far from guaranteed.
Nissan’s current PBR of 0.2 times signals extremely low investor expectations. To regain market trust, Nissan must go beyond simple cost-cutting and focus on fundamentally improving product competitiveness and rebuilding its reputation for reliability.
