Nissan Motor Co. returned to profit in the first quarter of fiscal 2026 after more than a year of restructuring under its Re:Nissan recovery plan.

The Japanese carmaker posted an operating profit of ¥77.9 billion for the three months ended 30 June. A year earlier, it recorded a ¥79.1-billion operating loss.

The turnaround marked a year-on-year improvement of ¥157 billion, while its operating margin rose from negative 2.9 percent to 2.6 percent.

Net income reached ¥3.8 billion, compared with a ¥115.8-billion loss in the same period last year. Ordinary profit also swung from a loss of ¥109.2 billion to a profit of ¥49.1 billion.

Revenue climbed by ¥257.3 billion to ¥2.964 trillion as Nissan sold 701,000 vehicles worldwide.

Lower manufacturing and vehicle costs helped the company return to the black. Favorable exchange rates and better sales also supported the result. Nissan said one-time gains tied to US tariffs from fiscal 2025 added to operating profit.

Re:Nissan accounted for about ¥60 billion in savings during the quarter. Most came from lower variable costs across the business. The recovery program began in May 2025 as Nissan sought to cut expenses and rebuild its finances after a difficult year.

The quarterly profit did not remove the pressure on the business. Nissan lowered its full-year sales forecast from 3.3 million vehicles to 3.15 million because of weaker market conditions, mainly in China. It still expects sales outside China to grow from the previous year.

The company kept its fiscal 2026 operating profit forecast at ¥200 billion despite higher raw material costs and geopolitical uncertainty in the Middle East. Nissan expects continued savings and favorable exchange rates to help offset those risks.

Results varied across Nissan’s major markets. US sales rose by nearly 10 percent in the quarter, while retail sales have now increased for 16 straight months. In Japan, the new Kicks and Elgrand received 11,000 and 8,000 orders, respectively.

China remains the larger concern. Nissan plans to manage dealer inventory more closely and build demand for electrified models such as the N6, N7, NX8 and Frontier Pro. It also plans to use China as an export base as it works toward a sales recovery from 2027.

In the Philippines, Nissan recently introduced the X-Trail e-Power and is preparing to debut the new Kicks e-Power. The carmaker also previewed China-built models with familiar nameplates and electrified powertrains at the 2026 Philippine International Motor Show.

Nissan president and CEO Ivan Espinosa said conditions remained difficult in China and the Middle East. He said the company would continue to adjust its market plans while it improves its products and cost structure.

The first-quarter result shows that Nissan’s recovery measures have started to deliver results. Sustaining that profit will depend on further savings and stronger sales outside China through the rest of fiscal 2026.