Nidec (6594) Q4 2025 earnings summary

Executive summary

• Net sales reached ¥2,607.1 billion, up 11.1% year-over-year, with record-high operating profit of ¥240.2 billion, up 48.4%, and profit attributable to owners rising 34.7% to ¥167.7 billion.

• Q4 net sales and operating profit also reached record highs on a quarterly basis.

• Implemented strategic business shifts, including profitability focus in Battery EV, integration of automotive business units, and investments in production capacity in India, France, and the Americas.

• Launched new mid-term management plan (Converge/Conversion 2027) targeting a 12% operating profit ratio and ¥2.9 trillion in sales by FY2027.

• Strong cash flow generation supported balanced allocation to growth investment, shareholder returns, and debt control.

Financial highlights

• Operating profit and net sales both achieved record highs, with strong growth in all major product groups except for a temporary decline in Small Precision Motors.

• FY2024 net sales rose 11.1% year-over-year to ¥2,607.1 billion; operating profit increased 48.4% to ¥240.2 billion, with an operating profit ratio of 9.2%.

• Profit before income taxes grew 17.3% to ¥236.5 billion; profit attributable to owners up 34.7% to ¥167.7 billion.

• EPS was ¥145.95, up 34.7% year-over-year; dividends per share were ¥40.0.

• Cash flow for the year was ¥137.2 billion, the second-best result in company history.

Outlook and guidance

• FY2025 forecast targets ¥2.6 trillion in net sales and ¥260 billion in operating profit, with a double-digit operating profit ratio.

• Dividend is expected to increase to ¥42.5 per share.

• FY2026 guidance: net sales ¥2,600,000 million (flat), operating profit ¥260,000 million (+8.2%), profit before income taxes ¥270,000 million (+14.2%), profit attributable to owners ¥200,000 million (+19.3%).

• The company anticipates continued uncertainty in the global economy and is prioritizing profit improvement over sales growth.

• FX assumptions: ¥140/USD and ¥155/Euro.