Earnings call transcript: Nissan posts H1 turnaround but shares slip on China weakness

Nissan Motor Co. reported a strong first-half turnaround for fiscal 2026, with operating profit returning to JPY 80 billion and net losses narrowing to JPY 39.7 billion. However, the company's shares slipped 1.52% to $277.8 after the earnings call, as concerns linger over China's weakness and negative automotive free cash flow. Nissan reaffirmed its full-year outlook, but lowered its retail sales guidance to 2.97 million to 3.0 million units, mainly due to the Chinese market.

The company attributes its improvement to manufacturing efficiencies, lower R&D spending, and vehicle cost reductions. Despite the positive move in the first half, Nissan faces challenges in China, where intense local competition and the shift towards electric vehicles create structural difficulties.