Novem Group (NVM) Q4 2025 earnings summary

Executive summary

• Full-year revenue declined 14.8% year-over-year to €541.5m due to persistent weak demand, especially in Europe and Asia.

• Adjusted EBIT dropped to €48.9m, with a margin of 9.0%, impacted by poor call-offs and unfavorable cost coverage.

• Restructuring and cost-saving measures supported profitability despite market headwinds.

• Free cash flow for the year was €28.5m, bolstered by a strong Q4.

• Workforce reduced by about 380 employees, mainly in Europe, in response to sluggish market momentum.

Financial highlights

• Q4 revenue fell 7.8% year-over-year to €138.0m; full-year revenue down €94.0m from prior year.

• Q4 Adjusted EBIT was €12.7m (margin 9.2%), down from €14.4m last year.

• Free cash flow in Q4 reached €26.6m, up from €24.2m; full-year free cash flow at €28.5m, down from €53.8m.

• Net leverage increased to 1.8x Adj. EBITDA from 1.6x last year.

• Capital expenditure for the year was €17.5m, with a capex ratio of 3.2%.

Outlook and guidance

• Ongoing weak market momentum and industry uncertainty due to US trade policy and car tariff discussions.

• Continued focus on restructuring and cost management to sustain profitability.