Nidec won't pay year-end dividend

Nidec won't pay year-end dividend

Nidec Announces No Interim Dividend and Revises Financial Forecasts Amid Ongoing Investigations

On October 23, 2025, Nidec Corporation (TSE: 6594; OTC US: NJDCY) announced its decision not to pay an interim dividend for the fiscal year ending March 31, 2026, with a record date of September 30, 2025. This marks a departure from its historical dividend policy, which emphasized stable payouts to shareholders. The company also revised its year-end dividend forecast and consolidated financial projections for the same fiscal year, citing ongoing investigations into suspected accounting irregularities.

The decision to forgo the interim dividend follows a board resolution on October 23, 2025, and reflects uncertainty surrounding Nidec's financial reporting. A third-party committee is currently investigating potential inappropriate accounting practices involving the company and its group. Should material misstatements be identified in prior financial statements, Nidec has stated it will take corrective measures, including amending securities reports.

Nidec also revised its year-end dividend forecast, though the updated amount remains unspecified. The company attributed this to the ongoing investigations and the need for further clarity on its financial position. Additionally, Nidec implemented a two-for-one stock split effective October 1, 2024, which impacts dividend calculations for the fiscal year ending March 31, 2025.

The announcement underscores heightened scrutiny of Nidec's financial practices. The company apologized to shareholders and stakeholders for the inconvenience and emphasized its commitment to transparency. However, the year-end dividend forecast and consolidated financial outlook for the fiscal year ending March 31, 2026, remain undetermined until the investigations conclude.

Investors are advised to monitor future disclosures from Nidec as the company works to resolve these issues and finalize its financial guidance. The developments highlight the risks associated with corporate governance challenges and their potential impact on shareholder returns.

(https://www.nidec.com/en/ir/news/2025/news1023-01/): Nidec Corporation, Notice Regarding the Determination of No Interim Dividend (October 23, 2025).
(https://finance.yahoo.com/news/nidec-announces-determination-no-interim-071000022.html): BusinessWire, Nidec Announces the Determination of No Interim Dividend (October 23, 2025).