Novem Group (NVM) Q2 2026 earnings summary

Executive summary

• Q2 2025 revenue was EUR 125.5 million, down 9.9% year-over-year, mainly due to market weakness, project delays in tooling, and external disruptions such as production halts at Jaguar Land Rover and BMW China, while serial production stabilized.

• Free cash flow improved significantly to EUR 15.8 million in Q2, up from EUR 3.6 million last year, reflecting strong operational discipline and cost management.

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

• Cost management and restructuring measures, especially in Germany and central functions, are yielding positive effects on margins.

Financial highlights

• Q2 revenue: EUR 125.5 million, down 9.9% year-over-year; HY revenue: EUR 254.5 million, down 8.9%; at constant FX, revenue would have increased by 3.5%.

• Adjusted EBIT for Q2: EUR 7.7 million (6.1% margin), down from 8.6% last year; HY adjusted EBIT: EUR 15.4 million (6.0% margin), down from 9.4%.

• Free cash flow for Q2: EUR 15.8 million; HY: EUR 17.2 million; last 12 months: EUR 45.1 million, up 37.2% sequentially.

• Net leverage at 2.0x adjusted EBITDA, slightly higher than last year (1.9x); net financial debt reduced to EUR 138.7 million from EUR 169.5 million.

• Gross financial debt reduced to EUR 292.1 million from EUR 301.9 million; cash and equivalents increased to EUR 153.4 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.