Nidec Financial Results Show JPY 519 Billion Operating Loss

Nidec Corporation reported a consolidated operating loss of JPY 518.978 billion and a net loss attributable to owners of the parent of JPY 564.624 billion for the fiscal year ended March 31, 2026. The figures compare with a restated net profit of JPY 84.672 billion in the previous fiscal year. Revenue increased 3.9% year-over-year to JPY 2,708.705 billion, while the company recognized approximately JPY 632.2 billion in impairment losses on non-financial assets across the group. Nidec also restated prior-year financial figures following findings involving inappropriate accounting practices and other issues.

Nidec Automotive Products Revenue Increased Despite Losses

The Automotive Products group generated revenue of JPY 718.309 billion for the fiscal year ended March 31, 2026, representing a 7.7% year-over-year increase. Despite the higher revenue, the group recorded an operating loss of JPY 250.536 billion, compared with a restated operating profit of JPY 25.255 billion for the fiscal year ended March 2025. The group also recognized JPY 231.085 billion in impairment losses on non-financial assets. The results show that revenue growth did not offset the financial effects of weaker profitability and substantial impairment charges within the automotive business.

Automotive Impairment Losses Hit Nidec Businesses

Major automotive-related impairment charges included JPY 116.287 billion at Nidec-PSA emotors, where profitability deteriorated amid slower growth in the EV market. Nidec also recognized JPY 73.126 billion at Nidec Mobility because of deteriorating profitability in its North American business. In response, Nidec Corporation said it is working to improve automotive profitability by reviewing orders associated with unprofitable models and reducing fixed costs. These actions are intended to address businesses and contracts that are placing pressure on automotive earnings.

Automotive Inverter Contracts Face Additional Provisions

Nidec's automotive inverter business had JPY 71.042 billion in provisions for onerous contracts as of March 31, 2026. These provisions cover contracts for which unavoidable fulfillment costs exceeded the expected economic benefits. In September 2026, Nidec signed a memorandum with a customer to amend contract terms, including shortening the supply period and reducing the number of units the company is obligated to supply. The changes are expected to reduce the related provisions, although additional provisions are expected for claims from raw material suppliers. The financial impact remained under assessment, and the contract changes were not reflected in the consolidated financial statements for the fiscal year ended March 2026.

PwC Japan Issued a Disclaimer of Opinion

PwC Japan LLC issued a disclaimer of opinion on Nidec's financial statements. PwC stated that some personnel remediation measures concerning employees and officers involved in inappropriate accounting practices and other issues remained incomplete. It also noted that some of those individuals continued to hold positions of responsibility within the financial reporting process. In addition, PwC said it could not obtain sufficient appropriate audit evidence concerning the amounts of impairment losses and the periods in which those losses should be recognized. As a result, PwC did not express an audit opinion on the consolidated or non-consolidated financial statements.

Industry Impact & Outlook

Nidec's results highlight the financial pressure that weaker EV market growth, unprofitable automotive programs, and deteriorating regional business performance can place on automotive suppliers. The combination of impairment charges, onerous contract provisions, and efforts to reduce fixed costs could influence how the company evaluates future vehicle programs and customer contracts. The September 2026 contract amendment may reduce certain obligations, but its eventual financial effect remains under assessment, while potential supplier claims could create additional provisions. The incomplete remediation measures and audit disclaimer also make the resolution of accounting issues an important next step for Nidec and stakeholders reviewing its financial reporting.

Frequently Asked Questions

What did Nidec report for the fiscal year ended March 2026?
Nidec reported a consolidated operating loss of JPY 518.978 billion and a net loss attributable to owners of the parent of JPY 564.624 billion for the fiscal year ended March 31, 2026. Revenue increased 3.9% year-over-year to JPY 2,708.705 billion, while approximately JPY 632.2 billion in impairment losses were recorded on non-financial assets across the group. The Automotive Products group reported higher revenue but an operating loss of JPY 250.536 billion, alongside JPY 231.085 billion in impairment losses. PwC Japan also issued a disclaimer of opinion.