Novem Group (NVM) Q2 2026 earnings summary

Executive summary

• Q2 2025 revenue was €125.5 million, down nearly 10% year-over-year due to market weakness, project delays in Tooling, and temporary production halts at key customers like JLR and BMW China.

• Serial production business remained stable, while cost management initiatives in Germany began to show positive effects.

• New business wins with McLaren and a pre-development order from Harley-Davidson support strategic expansion into broader mobility and two-wheeler markets.

• Free cash flow improved significantly, driven by strong Q2 performance and disciplined cost management.

Financial highlights

• Q2 adjusted EBIT was €7.7 million (6.1% margin), down from €12.0 million (8.6%) last year; HY adjusted EBIT was €15.4 million (6.0% margin), down from €26.2 million (9.4%).

• Free cash flow for Q2 was €15.8 million, up from €3.6 million; HY free cash flow was €17.2 million, up from €0.6 million.

• Net income rose to €18.3 million, up from €11.2 million, with earnings per share at €0.43 (up from €0.26).

• Net leverage at 2.0x adjusted EBITDA, slightly higher than last year.

• Net financial debt improved to €138.7 million, down from €169.5 million.

Outlook and guidance

• Q3 expected to be weak due to seasonal factors and continued project postponements, with tooling revenue back-end loaded into Q4.

• Full-year performance expected to stabilize at current levels, supported by cost control and strategic positioning.

• No sharp volume recovery anticipated in the next 9-12 months, but margin recovery expected through ongoing cost initiatives.

• Management continues to focus on cost discipline and diversification.