Novem Group (NVM) Q1 2025 earnings summary

Executive summary

• Q1 2024/25 revenue declined 20.0% year-over-year to €140.1m, mainly due to weak automotive demand in Europe and Asia, while Americas saw growth.

• Adjusted EBIT was €14.2m with a margin of 10.1%, down from 11.4% last year, supported by cost management, restructuring, and customer compensation.

• Profit for the period dropped to €2.1m from €13.2m year-over-year.

• An impairment on receivables from an insolvent tier-1 client was recognized and adjusted in the period.

• Secured new business with Mercedes-Benz GLE SUV, expanding production to China, with SOP in Q4 2026.

Financial highlights

• Revenue fell to €140.1m from €175.2m year-over-year; adjusted EBIT dropped to €14.2m from €20.0m.

• Adjusted EBIT margin decreased to 10.1% from 11.4% year-over-year.

• Free cash flow was negative at €-3.0m, down from €11.2m in the prior year.

• Adjusted EBITDA was €22.3m (margin 15.9%), down from €28.3m (16.1%) year-over-year.

• Finance costs more than doubled to €9.9m, mainly due to currency effects and higher interest expenses.

Outlook and guidance

• Market conditions are not expected to improve in the short term, with continued weak demand in the automotive sector, especially in Europe and Asia.

• Cost-cutting and restructuring measures are expected to continue supporting margins.