Nidec (6594) Q3 2026 earnings summary

Executive summary

• Net sales for the nine months ended December 31, 2025 rose 2.4% year-over-year to ¥1,986,357 million, but operating profit fell 28.7% to ¥115,735 million and profit attributable to owners of the parent dropped 69.3% to ¥39,117 million.

• Q3 net sales increased 2.4% sequentially to ¥681,459 million, but operating profit declined 47.3% to ¥28,427 million and profit attributable to owners of the parent fell 28.2% to ¥9,722 million.

• The company underwent significant restatements due to widespread improper accounting practices, with a Third-Party Committee investigation leading to retroactive corrections and ongoing internal control remediation.

Financial highlights

• Operating profit for the nine months was negatively impacted by a ¥17,569 million impairment loss and a ¥16,479 million supplier claim settlement, while the prior year included a ¥10,195 million gain from a step acquisition.

• Gross profit for the nine months was ¥402,762 million, with a gross margin of 20.3%.

• Earnings per share (basic and diluted) for the nine months were ¥34.13, down from ¥110.85 year-over-year.

• Free cash flow for the nine months was ¥71,970 million, up ¥2,519 million year-over-year.

Segment performance

• Small precision motors: Net sales decreased 0.2% to ¥366,928 million, but operating profit rose 24.1% to ¥55,575 million.

• Automotive products: Net sales increased 5.3% to ¥523,060 million, but the segment posted an operating loss of ¥17,868 million due to impairments and supplier settlements.

• Appliance, commercial and industrial products: Net sales grew 3.6% to ¥807,061 million, operating profit fell 4.3% to ¥74,414 million.

• Machinery: Net sales declined 2.9% to ¥221,731 million, operating profit dropped 32.8% to ¥13,121 million.

• Electronic and optical components: Net sales decreased 1.4% to ¥64,833 million, operating profit increased 10.1% to ¥9,866 million.