Nidec (6594) Q4 2025 earnings summary

Executive summary

• Achieved record-high net sales of JPY 2.6071 trillion, operating profit of JPY 240.2 billion (up 48.4%), and profit attributable to owners of JPY 167.7 billion (up 34.7%) for FY2024, with strong Q4 results and robust cash flow supporting investment and shareholder returns.

• Implemented midterm strategy "Converge/Conversion 2027" targeting a 12% operating profit ratio and JPY 2.9 trillion in sales by FY2027, with a focus on five business pillars and global expansion.

• Strategic business shifts included profitability focus in Battery EV, integration of automotive units, and investments in production capacity in India, France, and the Americas.

Financial highlights

• Net sales rose 11.1% year-over-year to JPY 2,607.1 billion; operating profit up 48.4% to JPY 240.2 billion; profit before income tax up 17.3% to JPY 236.5 billion; EPS up 34.7% to JPY 145.95.

• Operating profit ratio improved to 9.2% from 6.9% year-over-year.

• Free cash flow for FY2024 was JPY 137.2 billion, with operating cash flow at JPY 284.4 billion.

• Dividend per share increased to JPY 40.0, reflecting strong performance.

• Total assets increased to JPY 3,325.6 billion; total equity attributable to owners rose to JPY 1,719.3 billion.

Outlook and guidance

• FY2025/FY2026 guidance: net sales of JPY 2.6 trillion, operating profit of JPY 260 billion, and EPS of JPY 174.47, with a double-digit operating profit ratio.

• Dividend forecast for FY2025/FY2026 is JPY 42.5 per share.

• The company anticipates continued global economic uncertainty and prioritizes profit improvement over sales growth.