Nidec (6594) Q2 2025 earnings summary

Executive summary

• Net sales for the first half of FY2024 rose 11.8% year-over-year to ¥1,293.8 billion, setting a record high, with operating profit up 4.9% to ¥121.0 billion, also a record.

• Profit before income taxes declined 30.9% to ¥100.2 billion, and profit attributable to owners dropped 28.5% to ¥75.6 billion, mainly due to foreign exchange losses and higher costs.

• The company is executing aggressive investments in capital expenditure, R&D, and structural reforms to support midterm growth.

• A new management system under President Mitsuya Kishida focuses on group-wide integration and profitability.

• Major acquisitions, including Nidec PSA emotors and Linear Transfer Automation, contributed to growth and business expansion.

Financial highlights

• Operating profit margin for 1H FY2024 was 9.4%, down from 10.0% in 1H FY2023.

• EPS for 1H FY2024 was ¥65.76, down 28.5% year-over-year; interim dividend per share was ¥40 (pre-stock split basis).

• Free cash flow for 1H FY2024 was ¥28.0 billion, down ¥33.26 billion year-over-year.

• Structural reform and restructuring costs impacted segment results, with expenses totaling over ¥10 billion.

• Cash and cash equivalents at period end: ¥215.6 billion, down ¥10.4 billion from March 31, 2024.

Outlook and guidance

• FY2025 guidance: net sales ¥2,500 billion, operating profit ¥240 billion, profit attributable to owners ¥185 billion, EPS ¥160.98; full-year guidance remains unchanged.

• The company targets ¥3 trillion in sales within six years and aims for ¥7 trillion by 2030, with a milestone of ¥10 trillion as a long-term goal.

• Water cooling module business is expected to see significant growth, with revenue projected to double to ¥80 billion next fiscal year.

• Exchange rate sensitivity: every ¥1 change vs. USD/Euro impacts annual net sales and operating profit.

• No change to previously announced guidance; management expects continued growth in AI/data center, automotive, and green innovation sectors.