Nidec faces significant losses, auditor disclaims opinion on financials

Nidec Corporation recorded significant charges in its first and second quarters of the fiscal year ending March 2026. These include a provision for loss on contract of 36,471 million yen and non-financial asset impairment losses of 31,674 million yen in the AMEC segment (automotive products). Additionally, the MOEN segment (appliance, commercial, and industrial products) incurred 19,495 million yen in liabilities for supplier claims. These items were post-reporting period adjusting events for Q1, necessitating revisions to both Q1 and Q2 financial figures.

As a result of these adjustments, Nidec's Q1 operating profit shifted from an initial preliminary report of 61,450 million yen to an actual loss of 26,407 million yen. Net profit attributable to owners of the parent also changed from 45,515 million yen to a loss of 9,383 million yen. The auditor, PwC Japan LLC, issued a disclaimer of conclusion on the condensed quarterly and semi-annual consolidated financial statements, citing an ongoing investigation by a third-party committee into suspected inappropriate accounting practices and trade-related issues. The company’s shares were designated as a "Security on Special Alert" by the Tokyo Stock Exchange effective October 28, 2025, due to concerns about internal control deficiencies.