Novem Group (NVM) Q1 2026 earnings summary

Executive summary

• Revenue declined 8.0% year-over-year to €128.9m, mainly due to project phasing in Tooling, adverse FX effects, and temporary OEM production halts, while Series business remained relatively stable.

• Adjusted EBIT margin dropped to 6.0% from 10.1% year-over-year, reflecting lower profitability amid market headwinds and production halts in the Americas.

• Cost optimization and restructuring initiatives are ongoing, especially in Germany, to address market pressures.

• New business wins were secured with Volvo and General Motors despite the challenging environment.

Financial highlights

• Adjusted EBIT fell to €7.7m from €14.2m year-over-year, with margin at 6.0%; Adjusted EBITDA decreased to €15.6m from €22.3m.

• Net income rose to €15.6m from €2.1m, driven by strong positive financial result from currency translation effects.

• Free cash flow improved to €1.3m from -€3.0m year-over-year.

• Capital expenditure reduced to €1.8m, with a capex ratio of 1.4%.

• Total working capital was €136.9m, with a 3.8% year-over-year decrease in one source and a 10.5% increase in another, mainly due to higher tooling net and trade receivables.

Outlook and guidance

• Strategic actions and cost discipline are being prioritized to address weak demand and cost coverage.

• Further cost optimization initiatives are underway, focusing on central functions in Germany.