Motor and Power Equipment Q3 FY2026: GS Yuasa and Fuji Electric soar as Nidec delays
Companies compared · 3
Nidec
6594
Fuji Electric
6504
GS Yuasa
6674
Takeaway
A giant's silence contrasts with the surge of two rivals.
The Motor and Power Equipment sector saw a stark divergence in Q3 FY2026. While Fuji Electric and GS Yuasa posted strong earnings on robust demand, industry giant Nidec faced an unprecedented delay over accounting issues.
Market Dynamics
Three major themes shaped the industry this quarter:
- Surge in Data Centers: The proliferation of AI has sparked a massive spike in demand for power supply equipment.
- Expansion of Hybrid Vehicle Batteries: As the electric vehicle (EV) market experienced a slowdown, demand for HV batteries surged.
- Governance Issues Emerge: Accounting irregularities at a major player have shaken trust across the industry.
While global investment in the green transformation (GX) continues, corporate performance has split sharply into clear winners and losers depending on each company's execution.
Revenue Ranking
Fuji Electric secured the top spot with revenue of 851.1 billion yen, hitting a record high by capturing power supply demand for generative AI. Meanwhile, former rival Nidec's failure to disclose stood out as an unprecedented situation.
Winners and Losers
The clear winner this quarter is GS Yuasa, which achieved a substantial profit increase.
The company's operating profit jumped 19.5% year-on-year to 38 billion yen, while net income rose 20% to 22.1 billion yen. Its operating profit margin reached 8.8%, leading the three companies. This rapid profit growth was driven by expanding sales of hybrid vehicle (HV) batteries and successful price hikes.
Conversely, the loser is Nidec, which failed to release its financial results.
Due to a prolonged investigation into inappropriate accounting, the company could not meet its disclosure deadline, leaving all financial figures unknown. This has fundamentally shaken investor trust.
Winner
GS Yuasa
Laggard
Nidec
Operating Profit
Fuji Electric also led in operating profit at 740 billion yen, while GS Yuasa put up a strong showing at 380 billion yen. Both companies are steadily boosting earnings power on the back of resilient infrastructure demand.
Operating Profit Margin
GS Yuasa topped the group with an operating margin of 8.8%, closely followed by Fuji Electric at 8.7%. Both companies improved margins through price hikes and a strategic shift toward high-value-added products.
Strategic Focus: Divergent Paths
The two high-performing companies are deploying distinct strategies to capture changing market dynamics.
Fuji Electric is shifting its focus from heavy electrical machinery to energy management. Riding high on robust demand for data center equipment, its operating profit rose 8.2% to 74 billion yen, with the energy division driving overall performance.
GS Yuasa successfully turned its battery business profitable. Previously a heavily investment-led segment, the company has transformed it into a stable profit engine by capturing HV demand, further aided by US subsidies.
In contrast, Nidec must now prioritize fundamental governance reform above all else.
Shared Industry Risks
Despite robust underlying demand, the sector faces several key headwinds:
- Reputational Risk: Governance scandals at one firm can taint the image of the entire sector.
- Subsidy Policy Shifts: Policy changes, such as adjustments to the US Inflation Reduction Act (IRA), directly impact profitability.
- Currency Fluctuations: Global operations leave companies highly vulnerable to foreign exchange risks, particularly depreciating emerging market currencies.
- EV Market Uncertainty: Slower-than-expected adoption of electric vehicles threatens the recovery of massive capital investments.
Revenue Growth YoY
Fuji Electric led the field with a 7.6% revenue increase. This growth reflects the company's success in capturing global investment demand for data centers.
Net Income Growth YoY
GS Yuasa posted an outstanding 20% surge in net income, driven by profitability in its HV battery segment and benefits from US subsidies. Fuji Electric fell into negative territory due to high base effects from one-time gains last year.
Career Outlook
For job seekers and professionals considering a career change, this sector remains an incredibly attractive option.
Fuji Electric and GS Yuasa are at the forefront of growth trends such as decarbonization and AI. With advanced technological capabilities and robust global demand, they offer the potential to build highly stable careers.
On the other hand, applying to Nidec requires careful observation. While the company is currently in turmoil, its technological prowess and global market share remain formidable. Some may view its current organizational transformation as a unique opportunity.