Nidec posts loss, announces recovery plan amid audit concerns

Nidec Corporation disclosed financial results for the final two quarters of its fiscal year ending March 2026, revealing an operating loss of ¥518.9 billion for the entire year. The company outlined a plan for fiscal year 2027, aiming to generate an operating profit of ¥200 billion, corresponding to an operating margin of 7.1%. This forecast aligns with expectations, with first-half profits anticipated at ¥120 billion.

During fiscal year 2026, Nidec incurred ¥632.1 billion in impairments and ¥330.9 billion in extraordinary losses, figures consistent with earlier reports from Diamond Online on June 28.

The company's profit plan for fiscal year 2027 highlights that despite anticipated cost increases compared to past periods, business units such as MOEN are expected to help recover profits. Nidec's financial situation remains under an auditor's disclaimer of opinion. Citi analysts have indicated that concerns surrounding the audit situation may continue to influence the stock price. This report was created with AI assistance and subsequently reviewed by an editor for accuracy.