By Kosaku Narioka

Nissan Motor projected an annual net loss of $4.2 billion as it extended its streak of losses, hampered by U.S. tariffs and weaker sales while it forges ahead with a global restructuring.

The Japanese carmaker said Thursday that it expects a 650.00 billion yen net loss for the year ending March--equivalent to $4.24 billion--and forecast annual global sales to drop 4.4% to 3.20 million units, down from its previous guidance of 3.25 million units.

The automaker has taken a series of restructuring steps over the past year to cut costs and address falling sales, including selling its headquarters. Nissan in January agreed to sell its South African plants to Chinese carmaker Chery Automobile.

Chief Executive Ivan Espinosa said restructuring-related noncash charges are set to hit the company's bottom line this fiscal year, as expected. But he noted that the company recorded an operating profit in its third quarter even after paying the equivalent of more than half a billion dollars in tariffs. The automaker also posted an operating profit in its second quarter.

"Is it good enough? No. We need to continue working, and we need to do more, and we need to do it faster," he said. "I think what is important is that we recognize that the plan is on track--and we're doing exactly what we said we would be doing."

Nissan has said it will cut 20,000 jobs over the four years through March 2028. It is also reducing annual global production capacity outside China by nearly 30% to 2.5 million vehicles and shrinking manufacturing sites to 10 from 17.

The company continues to expect a Y275 billion drag on annual operating results from U.S. tariffs. Japanese autos are subject to a 15% tariff following the trade deal reached with Washington in July.

Besides restructuring, Nissan is also taking steps to make its cars more appealing. The carmaker is teaming up with U.K. startup Wayve to bring AI-powered driver assistance to mass-produced vehicles worldwide. Nissan's first model using Wayve's technology is expected to hit the market in Japan in the fiscal year starting April 2027.

Nissan recorded a net loss of Y28.3 billion for the three months ended December, widening from Y14.1 billion a year earlier. Analysts had expected net loss of Y71.38 billion, according to a poll by data provider Quick.

Revenue fell 5.1% to Y2.999 trillion due to weaker vehicle sales. U.S. levies lowered operating profit by Y82.3 billion in its third quarter.

For the year ending March, it raised its revenue and operating result forecasts. It now expects revenue to decline 5.8% to Y11.900 trillion and an operating loss of Y60.00 billion. It previously guided for revenue of Y11.700 trillion and operating loss of Y275.00 billion.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

February 12, 2026 06:57 ET (11:57 GMT)

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