Nidec posts annual operating loss after asset impairments
Nidec adopted a new board structure to strengthen independence and oversight.
Nidec Corporation (TSE-6594) recorded an operating loss of 518,978 million yen for the fiscal year ended March 31, 2026, after recognizing impairment losses of 632,135 million yen on nonfinancial assets.
Nidec's revenue from continuing operations rose 3.9% from the previous fiscal year to 2,708,705 million yen for the year ended March 31, 2026.
Nidec recorded a loss attributable to owners of the parent of 564,624 million yen, a deterioration of 649,296 million yen from the previous fiscal year's result.
Nidec's home appliance, commercial and industrial products group recorded an operating loss of 251,124 million yen after recognizing nonfinancial asset impairment losses of 335,139 million yen during the fiscal year.
Nidec's precision small-motor products group reported revenue of 498,696 million yen, an increase of 2.2% from the previous fiscal year for the year ended March 31, 2026.
Nidec's hard-disk-drive motor revenue increased 9.8% from the previous fiscal year to 110,152 million yen for the fiscal year ended March 31, 2026.
Nidec's automotive products group reported revenue of 718,309 million yen, an increase of 7.7% from the previous fiscal year for the year ended March 31, 2026.
Nidec worked to develop products and expand sales of its precision small-motor offerings for data centers, including water-cooling modules and motors for nearline hard-disk drives, to meet evolving requirements associated with rapid growth in the market supporting artificial intelligence.
Nidec pursued improvements in automotive profitability through reviews of orders for unprofitable models and reductions in fixed costs, alongside its continued provision of products and related modules supporting the electrification and automation of mobility.
Nidec said demand continued to grow for generators used in data-center emergency power supplies and for battery energy storage systems associated with the development of green technologies in its home appliance, commercial and industrial businesses.
Nidec pursued investment to expand production capacity in India, France, North America and Central America to meet that demand, alongside efforts to strengthen recurring business in downstream services such as maintenance and inspection.
Nidec was designated by the Tokyo Stock Exchange as a security requiring special attention on October 28, 2025, before the end of the fiscal year.
Nidec acknowledged that improper accounting and inappropriate conduct involving quality and inspections had substantially damaged the trust of shareholders, investors, customers, business partners and other stakeholders, and said management took that damage seriously.
Nidec was implementing measures throughout the group under its improvement plan to prevent a recurrence of improper conduct.
Nidec adopted a new board structure intended to increase directors' independence and strengthen oversight, alongside a substantial overhaul of its executive structure as an initial step in its reforms.
Nidec was changing its management approach so that individual businesses would develop plans reflecting their operating environments and capabilities, then implement those plans following substantive discussion and scrutiny, as the company moved away from excessive emphasis on results and direction from senior management.
Nidec was carrying out measures under its improvement plan and continually assessing their effectiveness as part of efforts to restore trust promptly and establish and operate appropriate internal management controls.
Nidec announced the basic framework of a management reform plan covering fiscal 2026 through fiscal 2030 on May 13, 2026, following a review of its previously stated plan.