Novem Group (NVM) Q4 2025 earnings summary

Executive summary

• Revenue declined by 14.8% year-over-year to EUR 541.5 million due to reduced customer call-offs and persistent weak demand, especially in Europe and Asia, impacting cost coverage and profitability.

• Adjusted EBIT margin for the year was 9%, with absolute Adjusted EBIT at EUR 48.9 million, affected by poor call-offs and unfavorable cost coverage.

• Free cash flow for the year was EUR 28.5 million, bolstered by a strong Q4 figure of EUR 26.6 million.

• Workforce was reduced by 380 employees, mainly in Europe, as part of cost management and restructuring initiatives.

• Secured the Volvo XC60 program, now covering the entire Volvo SUV platform.

Financial highlights

• Q4 revenue was EUR 138 million, down 7.8% year-over-year; full-year revenue at EUR 541.5 million, down 14.8%.

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

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

• Net leverage ended at 1.8x adjusted EBITDA, up from 1.6x last year.

• CapEx for the year was EUR 17.5 million, with a capex ratio of 3.2%.

Outlook and guidance

• Midterm Adjusted EBIT margin guidance of 11%-12% remains valid, supported by ongoing restructuring and new business ramp-ups.

• Management expects continued volatility due to customer behavior, governmental policies, and US trade policy shifts, but sees opportunities from recent order intake and market consolidation.

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