Novem Group (NVM) Q1 2027 earnings summary

Executive summary

• Revenue reached €132.6 million in Q1 2026/27, up 2.8% year-over-year, driven by strong Tooling growth while Series remained stable, despite ongoing geopolitical challenges impacting regions differently.

• Adjusted EBIT rose 14.1% to €8.8 million, with margin improving to 6.6% from 6.0%, supported by higher turnover and cost discipline.

• Free cash flow improved to €4.8 million, significantly above the prior year, mainly due to higher operating cash flow.

• New business wins with Scout Motors, BMW, General Motors, and Mercedes-Benz diversified the customer base.

• Expansion in Asia with a new Shanghai location and investments in DLyte technology enhanced capabilities.

Financial highlights

• Revenue: €132.6 million (+2.8% y/y); Series revenue €116.4 million (slightly down), Tooling revenue €16.2 million (+33.3% y/y).

• Adjusted EBIT: €8.8 million (+14.1%); margin: 6.6% (up from 6.0%).

• Free cash flow: €4.8 million (up €3.5 million year-over-year); LTM free cash flow at €51.7 million.

• Net financial debt reduced to €110.4 million from €150.7 million year-over-year; gross financial debt at €192.6 million (down €101.3 million y/y); net leverage ratio improved to 1.8x from 2.0x.

• Capital expenditure: €1.7 million (1.3% of revenue), with majority directed to growth projects in Pilsen and Querétaro.

Outlook and guidance

• Continued focus on cost efficiency, operational discipline, and investment in advanced surface finishing technology expected to support profitability.

• Ongoing geopolitical challenges and regional market differences anticipated to persist; no changes to risk assessment or guidance.