Nidec (6594) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 FY2024 rose 14.8% year-over-year to JPY 648.2 billion, marking a record high.

• Operating profit increased slightly by 0.1% to JPY 60.3 billion, also a record high.

• Consolidation of Nidec PSA eMotors (NPE) contributed a JPY 10.1 billion gain from a step acquisition.

• Upward revisions were made to full-year forecasts for net sales and operating profit.

• Free cash flow reached a record JPY 167.2 billion, recovering from a deficit last year.

Financial highlights

• Operating profit ratio was 0.38%, including NPE.

• Profit before income taxes and profit attributable to owners declined due to currency exchange effects.

• Q1 operating profit exceeded the original target of JPY 45 billion, reaching JPY 60 billion, with JPY 10 billion from accounting gains.

Outlook and guidance

• Upward revision of full-year guidance for net sales and operating profit.

• Conservative outlook maintained for water cooling business due to ongoing development.

• Targeting at least a 15% operating profit ratio across all business areas by 2030.

• Mid- to long-term sales target of JPY 10 trillion by 2030, with JPY 7 trillion organic and JPY 3 trillion from M&A.