Nidec revises FY2024 financials, flags internal control weakness

Nidec Corporation announced amendments to its consolidated financial statements for the fiscal year ended March 31, 2025. The corrections, detailed in a September 26, 2025 press release, include adjustments to net sales (from ¥2,607,094 million to ¥2,607,813 million), operating profit (from ¥240,200 million to ¥238,116 million), and profit attributable to owners of the parent (from ¥167,688 million to ¥164,365 million). These revisions stem from unpaid tariffs in trade transactions and improper accounting related to a lump-sum payment at a Chinese subsidiary.

Nidec also identified a material weakness in its internal controls over financial reporting as of March 31, 2025. This weakness is primarily attributed to inadequacies in company-wide information and communication, as well as accounting closing and reporting processes, stemming from trade transaction issues at Nidec FIR International S.R.L. and other internal investigations. Consequently, the company's internal control report received a disclaimer of opinion from PricewaterhouseCoopers Japan LLC.

Nidec plans to implement recurrence prevention measures, including fostering a compliance-first culture, strengthening trade compliance and global governance structures, and improving reporting lines. The company also confirmed its "Conversion 2027" mid-term management plan, targeting ¥2.9 trillion in consolidated net sales and ¥350 billion in operating profit by FY2027.