Novem Group (NVM) Q2 2025 earnings summary

Executive summary

• Q2 revenue was €139.4 million, down 18.9% year-over-year, and HY revenue was €279.5 million, down 19.5%, mainly due to weak demand in Europe and Asia, external disruptions, and adverse FX effects.

• Adjusted EBIT for Q2 was €12.0 million (8.6% margin), and for HY was €26.2 million (9.4% margin), both down year-over-year, impacted by lower sales and less profitable project business.

• Free cash flow in Q2 was €3.6 million, down 83.8% year-over-year, and HY free cash flow was €0.6 million, mainly due to lower operating cash flow and higher inventories.

• Cost management, production optimizations, and customer compensation payments partially offset adverse conditions.

• Entry into the van/luxury MPV segment with the Mercedes-Benz EQV platform and ramp-up for a major US EV manufacturer are expected to support future growth.

Financial highlights

• Q2 revenue: €139.4 million (down from €171.9 million); HY revenue: €279.5 million (down from €347.1 million); series revenue fell 20.4%, tooling revenue dropped 13.6%.

• Q2 Adjusted EBIT: €12.0 million (8.6% margin, down from 10.4%); HY Adjusted EBIT: €26.2 million (9.4% margin, down from 10.9%).

• Free cash flow for Q2: €3.6 million (down from €22.3 million); HY: €0.6 million (down from €33.5 million).

• Net leverage increased to 1.9x Adjusted EBITDA from 1.4x year-over-year.

• Earnings per share: €0.26 (down from €0.42 year-over-year).

Outlook and guidance

• Short-term outlook remains challenging with low and volatile customer call-offs and no change in visible demand trends.

• No formal guidance provided, but management aims to maintain double-digit Adjusted EBIT margin.

• Ramp-up of a major US EV manufacturer contract and solid order intake expected to support future revenue.