Nidec (6594) Q1 2026 earnings summary

Executive summary

• Preliminary Q1 FY2025 results were disclosed due to an ongoing investigation into country of origin labeling, impacting regular reporting.

• Net sales for Q1 FY2025 were JPY 637.9 billion, down 1.6% year-over-year, with operating profit up 2.3% to JPY 66.15 billion and an improved operating margin of 9.6%.

• Profit before tax fell 24.5% and net profit attributable to owners dropped 18.5% year-over-year.

• The company is executing a midterm plan focused on structural reforms, cost reductions, profitability, and global business integration.

Financial highlights

• Net sales: JPY 637.9 billion, down 1.6% year-over-year.

• Operating profit: JPY 66.15 billion, up 2.3% year-over-year.

• Profit before tax: JPY 59 billion, down 24.5% year-over-year.

• Net profit attributable to owners: JPY 45.5 billion, down 18.5% year-over-year.

• Free cash flow for Q1 was JPY 9.8 billion, with operating cash flow at JPY 49.1 billion and investment cash flow at -JPY 21.8 billion.

Outlook and guidance

• Full-year financial forecast remains unchanged, with FY2025 net sales forecast at JPY 2,600 billion and operating profit projected at JPY 260 billion.

• Significant business conversion and profit improvement expected in Q3 and Q4, driven by portfolio optimization and demand growth in select segments.

• The mid-term plan aims for net sales of JPY 2.9 trillion and an operating profit margin of 12% by FY2027.

• Expansion in data center cooling and emergency power generation expected to drive growth.

• ROIC is targeted to rise from 7.2% in FY2024 to 12% in FY2025.