Nidec updates Q1 earnings, unveils Conversion 2027 restructuring.

Nidec Corporation announced a correction to its first-quarter fiscal year 2026 earnings, with net sales for Q1 FY2026 at JPY638.0 bn and an operating loss of JPY26.4 bn. These revised figures stem from adjusting events and ongoing internal investigations.

The company’s mid-term management plan, "Conversion 2027," aims to enhance profitability through drastic reforms, including business restructuring, site consolidation, and personnel cuts, targeting an operating profit ratio of 12% by FY2027. This strategy focuses on converting to a high-profit structure by reviewing non-profitable businesses, establishing five business pillars for future growth by FY2026, and converting to a truly global system with a lean organization and a global headquarters by FY2025. Kazuya Murakami has been appointed as the new chief legal officer to strengthen its global legal and compliance framework.

Nidec is strategically repositioning its product mix, with high-value-added nearline HDD motors now accounting for over 80% of sales by value. The company also completed the acquisition of China-based Xecom, a scroll compressor manufacturer, to expand into air conditioning and heat pump markets, adding to Embraco's reciprocating compressor lineup. Additionally, Nidec is trialing in-row type CDU water cooling modules for data centers, anticipating increased adoption of liquid cooling solutions with the rise of AI.