Nidec (6594) Q3 2025 earnings summary

Executive summary

• Net sales for the nine months ended December 31, 2024 rose 11.5% year-over-year to ¥1.946 trillion, setting a record high; operating profit increased 5% to ¥175.5 billion, also a record high.

• Profit attributable to owners of the parent declined 6.7% year-over-year to ¥134.6 billion, mainly due to temporary depreciation and exchange rate losses.

• Strong demand in Hard Disk Motors, AI server, and BESS segments; automotive business in China profitable, but restructuring in Europe and Americas led to losses.

• New management system and business integrations launched in 2024, focusing on group-wide synergies and five core business pillars.

• Record-high cash flow maintained, supporting growth investments and shareholder returns.

Financial highlights

• Operating profit margin for the nine months was 9.0%, down from 9.6% year-over-year.

• Operating cash flow for the nine months was ¥74.8 billion, with free cash flow at ¥69.1 billion.

• Exchange rate contributed ¥91.5 billion to net sales; yen depreciation against USD and EUR provided positive effects.

• Inventory levels improved in Q3 despite currency effects; further reductions and acceleration expected in Q4.

• EPS for the period was ¥117.14, down 6.7% year-over-year, reflecting a two-for-one stock split.

Outlook and guidance

• FY2024 net sales forecast is ¥2.5 trillion, with operating profit projected at ¥240.0 billion.

• Assumed Q4 FX rates: ¥145/USD and ¥155/EUR; every ¥1 change impacts annual net sales by ¥10.0 billion and operating profit by ¥1.1 billion.

• Double-digit operating profit ratio targeted from FY2025, with incremental profit of ¥60–70 billion expected toward the back end of next fiscal year.

• Mid-term target for FY2025 is ¥4 trillion in net sales, with 15% operating profit ratio on ¥3 trillion organic sales.

• No change to previously announced forecasts.