Nidec (6594) Q3 2025 earnings summary

Executive summary

• Net sales for the nine months ended December 31, 2024, rose 11.5% year-over-year to ¥1.946 trillion, marking a record high.

• Operating profit increased 5.0% year-over-year to ¥175.5 billion, also a record high.

• Profit before tax declined 4.7% and profit attributable to owners fell 6.7%, impacted by depreciation, exchange rate losses, and restructuring.

• Cash flow remained at record-high levels, supporting investments and shareholder returns.

• New management system and ongoing structural reforms focus on integration and business pillars.

Financial highlights

• Net sales rose from ¥1,745.1 billion to ¥1,946.0 billion year-over-year (+11.5%).

• Operating profit margin for the nine months was 9.0%, down from 9.6% year-over-year.

• Free cash flow for the nine months was ¥74.8 billion.

• Exchange rate effects contributed ¥91.5 billion to net sales.

• Inventory levels improved in real terms despite currency effects, with further reductions targeted in Q4.

Outlook and guidance

• FY2025 guidance: net sales ¥2.5 trillion, operating profit ¥240.0 billion, profit attributable to owners ¥185.0 billion, EPS ¥160.98.

• Double-digit operating profit ratio targeted from FY2025, with incremental profit of ¥60–70 billion expected.

• Water Cooling business aims for ¥200 billion in sales this year, with potential to reach ¥500 billion in the future.

• Traction and E-Axle businesses expected to turn profitable in Q4 and contribute significantly from FY2025 onward.

• Assumed FX rates for Q4: ¥145/USD and ¥155/Euro.