Novem Group (NVM) Q2 2025 earnings summary

Executive summary

• Q2 revenue was €139.4 million, down 18.9% year-over-year, mainly due to weak demand in Europe and Asia, extended holidays in Asia, technical issues at a major OEM, and Hurricane Helene's impact on customers.

• Half-year revenue reached €279.5 million, a decline of 19.5% from the prior year, with Americas showing resilience and Europe and Asia most affected.

• Adjusted EBIT for Q2 was €12.0 million (8.6% margin), and for the half-year €26.2 million (9.4% margin), both lower than prior year.

• Free cash flow for Q2 was €3.6 million, down sharply year-over-year, with net leverage rising to 1.9x Adjusted EBITDA.

• Entry into the luxury MPV segment with the Mercedes-Benz EQV platform and ramp-up for a major US EV manufacturer.

Financial highlights

• Q2 revenue: €139.4 million (down 18.9% year-over-year); HY revenue: €279.5 million (down 19.5%).

• Adjusted EBIT margin dropped to 8.6% in Q2 and 9.4% for the half-year, both below prior year.

• Free cash flow in Q2 was €3.6 million, HY free cash flow €0.6 million, both down significantly year-over-year.

• Cash position at €132.4 million, supported by factoring; net financial debt at €169.5 million; gross financial debt at €301.9 million.

• Earnings per share for HY was €0.26, down from €0.42 year-over-year.

Outlook and guidance

• Short-term outlook remains challenging with low and volatile customer call-offs, but solid order intake supports mid-term guidance.

• No formal guidance provided, but aim to maintain double-digit EBIT margin threshold.

• Ramp-up of a major US EV manufacturer contract expected to start in Q4, providing future revenue support.