Nidec's restated accounts show sales up 3.9% to ¥2.71tn for the year to March 2026 but an operating loss of ¥519.0bn, against a restated operating profit of ¥128.2bn a year earlier. The company booked ¥632.1bn of impairments on non-financial assets. The loss attributable to shareholders was ¥564.6bn, or ¥492.55 a share, compared with a restated profit of ¥84.7bn. The earnings summary carries a note that it is not subject to audit by an accountant or audit firm.
On 28 September Tokyo Brief reported that Nidec was studying a leadership change and a large writedown, but said neither was decided. The earnings summary now puts figures on the writedown.
Where the impairments landed
Nidec attributes the operating loss to the impairments. By product group, appliance, commercial and industrial took ¥335.1bn and automotive ¥231.1bn. Three of the largest charges are described in the notes:
- The ACIM business, which makes appliance motors, took a ¥298.8bn impairment. Nidec points to a loss of competitiveness from excess competition in China.
- Nidec-PSA emotors took ¥116.3bn, which Nidec ties to slower EV growth.
- Nidec Mobility took ¥73.1bn, which Nidec ties to weaker profitability in North America.
Almost all of the damage came in the final quarter. Nidec reported a ¥634.7bn operating loss for January to March, after a ¥28.4bn operating profit in the previous quarter.
A thinner balance sheet
Equity attributable to parent shareholders fell to ¥794.2bn from ¥1.24tn, and the equity ratio dropped to 25.6% from 42.5%. Interest-bearing debt rose to ¥1.11tn from ¥639.2bn, driven by a ¥492.9bn net increase in short-term borrowings. Cash and equivalents rose to ¥852.2bn from ¥246.3bn, so net interest-bearing debt fell to ¥261.2bn from ¥392.9bn. No dividend was paid for the year, and Nidec has not set payout forecasts for the year to March 2027.
What the restatement changed
The third-party committee Nidec set up in September 2025 reported many improper entries, both fraud and error, across many sites. Nidec has restated prior years to correct them, including items it had earlier left uncorrected as immaterial. Its restatement table shows the prior-year effect:
| Measure | As first reported | Restated |
|---|---|---|
| Operating profit | ¥237.8bn | ¥128.2bn |
| Profit attributable to owners of parent | ¥164.2bn | ¥84.7bn |
| Equity attributable to owners of parent | ¥1.72tn | ¥1.24tn |
| Total assets | ¥3.32tn | ¥2.92tn |
The cumulative effect on periods before the prior year cut opening retained earnings by ¥356.4bn. Nidec also says its shareholder payouts in each of the years to March 2022 through March 2026 exceeded the distributable amount under company law: a buyback in the first year, a dividend in the last, and dividends and buybacks in the years between. Those outlays were ¥31.4bn, ¥94.0bn, ¥41.2bn, ¥53.8bn and ¥23.0bn. The summary does not say what follows from that.
Control findings still open
According to the committee's report, as described by Nidec, management at many sites took part in or knew of improper accounting: early sales recognition, under-provisioning, overstated inventory, impairment avoidance and capitalised costs. The report also found that executives or accounting staff gave auditors inaccurate or misleading information, hid documents and supplied altered records.
Nidec says its review of individuals is unfinished. Some staff who were involved in, directed or knew of the misconduct, or who misled the auditors, still hold responsible positions in financial reporting. Nidec also says it cannot yet confirm that their successors are discharging those duties properly. The company states that undetected misstatements could have a material and pervasive effect on the accounts. Because it cannot say which items or amounts would change, nothing has been booked for them.
Nidec also says the restatement could be treated as a disclosure violation under the Financial Instruments and Exchange Act, exposing it to an investigation or a surcharge order. It cannot reasonably estimate any effect, so none is reflected. A separate committee of outside experts is still examining whether current and former directors and executives are legally liable. Nidec says it will decide on damages claims or other legal action after that report.
On trade, Nidec has estimated additional US duties of $70.7mn (about ¥10.7bn) at its two main importing units and $16.6mn (about ¥2.5bn) at five other sites. It is still sampling 21 more sites. A quality investigation found falsified test records at several plants. Nidec says the warranty provision it booked has a limited effect, but customer talks continue and could lead to further costs.
The listing deadline and the guide
The Tokyo Stock Exchange put Nidec on its special-alert list on 28 October 2025, typically for one year. Nidec must then submit an internal-management confirmation, and the exchange reviews it. If it finds a problem, delisting follows in principle. Nidec plans to submit the confirmation at the end of October 2026 and says its chief executive is waiving 100% of monthly base pay until it is filed.
For the year to March 2027, Nidec guides to sales of ¥2.8tn, operating profit of ¥200bn, pretax profit of ¥180bn and net profit of ¥100bn. It calls the forecast subject to assumptions, including exchange rates of ¥150 to the dollar and ¥180 to the euro. That guide sits alongside the company's own warning that its reporting controls may not yet be reliable.