NIDEC CORPORATION
6594・Prime Market・Electric Appliances
Business
Nidec Corporation was founded in 1973 and comprises 342 consolidated subsidiaries, operating as a global comprehensive motor manufacturer. It is organized into six reportable segments: HDD Motors and Small Precision Motors (SPMS), Automotive Products (AMEC), Appliance, Commercial & Industrial Products (MOEN/ACIM), Equipment & Systems (Machinery Business), and Electronic & Optical Components (Group Companies Business). Its major customers span a wide range including data center operators, automobile manufacturers, home appliance manufacturers, and social infrastructure operators, and it has built a global, local-production-for-local-consumption system with production bases across Asia, Europe, the Americas, and emerging markets. Consolidated net sales for FY2025 (ended March 2025) reached a record high of ¥2,607,813 million.
Business Model
Based on precision processing technology and cost competitiveness, the company manufactures and sells a wide range of products, from HDD Motors to Large Motors for Industrial & Social Infrastructure, generators, BESS, and Machine Tools. Through aggressive M&A, it expands its product lines and regional coverage, while pursuing economies of scale by optimizing procurement, production, and logistics across the group (One Nidec). It is also strengthening recurring businesses such as maintenance and inspection to expand its stable earnings base.
Company Strengths
Holds the world's top share in HDD spindle motors, and HDD motor sales in FY2025 (ending March 2025), driven mainly by nearline applications, reached ¥100,219 million, up 41.9% year on year. A recovery in demand for nearline HDDs used in AI data centers strongly drove performance.
Holds the world's No.1 share in Electric Power Steering Motors, and also offers automotive products such as Electric Brake Booster Motors. Capturing the wave of automotive electrification driven by the CASE revolution, sales in the Automotive Products group expanded to ¥664,623 million in FY2025 (ending March 2025), up 14.4% year on year.
The Group Companies Business posted operating income of ¥87,589 million with an operating margin of 13.2% in FY2025 (ending March 2025), while MOEN recorded operating income of ¥70,319 million. Backed by robust demand for generators, BESS, large motors, and other products, multiple segments are generating stable, high profitability.
ENVALITH's Perspective
Performance Trend
Net sales achieved four consecutive years of growth, rising from ¥1,618,064 million in FY2021 to ¥2,607,813 million in FY2025, with FY2025 marking a new record high. However, in Q1 FY2026 (ending March 2026) (April-June 2025), net sales fell 1.6% year-on-year to ¥638,026 million, and operating income plunged from a profit of ¥60,062 million in the same period of the prior year to a loss of ¥26,407 million. The main causes were the lump-sum recognition of a provision for contract losses of ¥35,915 million, non-financial asset impairment losses of ¥30,892 million, and a settlement liability for supplier indemnity claims of ¥19,001 million, all within the AMEC segment. Foreign exchange effects (yen appreciation of approximately 7% against the dollar) also acted as a factor reducing net sales by approximately ¥35,800 million. The quarterly loss attributable to owners of the parent was ¥9,383 million, and the quarterly loss per share was ¥8.19. The full-year earnings forecast remains undetermined due to the ongoing investigation by the third-party committee.
Growth Strategy
Pursuing three transformations under Conversion2027: shift to a high-profitability structure, transition to five core growth business pillars, and establishment of a truly global operating structure
A fundamental transformation of the profit structure is being pursued through review of orders for unprofitable models, fixed cost reductions, site consolidation, and workforce reductions. At AMEC, Nidec Mobility and Nidec Elesys merged in April 2025, and integration with ACIM is also being advanced. In the first quarter of FY2026 (ending March 2026), the company recognized contract loss provisions and impairment losses in a lump sum, front-loading recognition of losses.
The company is nurturing high-growth areas as its five core pillars: Precision Small Motors (HDD motors and liquid cooling modules for AI data centers), Appliance, Commercial & Industrial (generators and BESS), and Machinery Business (demand for labor-saving and unmanned operations), among others. In the first quarter of FY2026 (ending March 2026), Precision Small Motors, MOEN, and the Machinery Business posted solid profits, demonstrating their function as core pillars.
The company is advancing capacity-expansion investments in India, France, and North/Central America, building a manufacturing structure located close to demand centers. In July 2025, it acquired 100% of the equity of Changzhou Xecom Energy Technologies (scroll compressors) for ¥6,049 million, aiming to enter the refrigeration, air conditioning, and heat pump markets. The company strengthened its financial base through commitment line agreements of ¥300.0 billion each with MUFG Bank and Sumitomo Mitsui Banking Corporation (November 2025).
The company is prioritizing completion of the investigation by the third-party committee established in September 2025 (covering arbitrary adjustments to asset impairments, trade tariff issues, and suspected underreporting of withholding income tax at a Chinese subsidiary, among other matters) and correction of prior-period financial statements as its top priority. Improving and operating the internal control framework is an urgent task toward removal of the Tokyo Stock Exchange's Securities on Alert designation (imposed October 28, 2025).
Last updated: July 17, 2026