Nidec's Share Surge#
Nidec Corp, a Japanese electric motor manufacturer, saw its shares increase by as much as 7.8% on Monday, reaching 2,445.0 yen, before settling at 2,407.0 yen. This rise followed the release of a final report regarding a probe into improper accounting practices.
Findings of the Probe#
The report, conducted by a third party, revealed that Nidec is facing a significant net profit impact of 160.7 billion yen (approximately $1.01 billion) due to necessary accounting revisions from fiscal 2020 through early 2025. This figure is higher than an earlier estimate of 139.7 billion yen related to net asset issues stemming from improper accounting.
Implications for Nidec#
In addition to the profit impact, the report indicated that improper accounting affected goodwill and other asset impairments, totaling 250 billion yen. Nidec also faces an 11.1 billion yen charge due to U.S. customs duties. However, the report confirmed that the issues were confined to accounting practices and did not extend to the company's manufacturing operations, which remain robust.
Future Prospects#
The release of this final report alleviates some concerns about the risk of Nidec being delisted from the Tokyo Stock Exchange. It also allows the company to file amended financial reports. The report highlighted that much of the misconduct was linked to performance targets and pressure from Nidec's founder and former Chairman, Shigenobu Nagamori, who left the board in December. Despite the accounting scandal, Nidec shares have risen nearly 15% in 2026, recovering from record lows in late 2025 as investors remain optimistic about the company's manufacturing strength.