NIDEC CORPORATION
6594・Prime Market・Electric Appliances
SPMS (Small Precision Motors)
Nidec's core profit-generating segment centered on HDD Motors and small motors
| Period | Current | Previous | Change |
|---|---|---|---|
| External sales (Q1 FY2026, ending March 2026) | ¥119,005 million | ¥118,513 million (same period prior year) | ↑ |
| Operating profit (Q1 FY2026, ending March 2026) | ¥17,150 million | ¥13,101 million (same period prior year) | ↑ |
| Operating margin (Q1 FY2026, ending March 2026) | 14.4% | 11.1% (same period prior year) | ↑ |
| HDD Motors external sales (Q1 FY2026, ending March 2026) | ¥25,578 million | ¥23,485 million (same period prior year) | ↑ |
| Other Small Motors external sales (Q1 FY2026, ending March 2026) | ¥93,427 million | ¥95,028 million (same period prior year) | ↓ |
| External sales (full year FY2025, ended March 2025) | ¥391,265 million | — | — |
| Operating profit (full year FY2025, ended March 2025) | ¥41,130 million | — | — |
| Operating margin (full year FY2025, ended March 2025) | 10.4% | — | — |
Business Details
A segment handling HDD Motors and Other Small Motors (brushless motors, fan motors, vibration motors, liquid cooling modules, etc.). While capturing expanding demand for Liquid Cooling Modules for AI Data Centers and nearline-application HDD Motors, the segment is also working to improve profitability by reviewing unprofitable models. It is a core business maintaining a high profit margin within the group as a whole, achieving an operating margin of 14.4% in Q1 FY2026 (ending March 2026).
Recent Overview
Operating margin improved to 14.4% on higher HDD Motors sales and review of unprofitable models
External sales in Q1 FY2026 (ending March 2026) (April-June 2025) were ¥119,005 million (up 0.4% year on year). HDD Motors performed well, up 8.9% year on year to ¥25,578 million. Other Small Motors declined 1.7% year on year to ¥93,427 million. Operating profit increased 30.9% year on year to ¥17,150 million, and the operating margin improved significantly from 11.1% to 14.4%. The review of unprofitable models and improved product mix contributed to the improved profitability. The foreign exchange impact was a decrease in sales of approximately ¥66 million and a decrease in operating profit of approximately ¥1 million, both year on year.
Key Products
Growth Drivers
- Expanding demand and higher value-added products for nearline HDD Motors (Q1 FY2026 (ending March 2026) HDD Motors sales up 8.9% year on year)
- Rapid expansion of Liquid Cooling Modules for AI Data Centers (building production capabilities including for next-generation GPU-spec servers)
- Improved product mix through review of unprofitable models (Q1 FY2026 (ending March 2026) operating margin of 14.4%, up 3.3 points year on year)
- Expansion into new fields leveraging precision processing technology and cost competitiveness (e.g., motors for electric two-wheeled vehicles)
Risks
- A third-party committee investigation into allegations of improper accounting is ongoing, which could have a material and pervasive impact on the financial statements
- Long-term shrinking trend in the HDD market (structural decline in demand for PC-use HDDs)
- Risk of intensifying competition in the AI/data center liquid cooling module market
- Foreign exchange impact from yen appreciation (foreign exchange impact on sales in Q1 FY2026 (ending March 2026) was a decrease of approximately ¥66 million year on year)
- Continued decline in demand in shrinking fields such as optical discs and OA equipment
Last updated: September 26, 2025