Novem Group (NVM) Q4 2025 earnings summary

Executive summary

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

• Adjusted EBIT margin for the year was 9% (EUR 48.9 million), down from 10.9% last year, impacted by poor cost coverage.

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

• Free cash flow for the year was EUR 28.5 million, with a strong Q4 contribution.

• Strong order intake over EUR 100 million and new program wins, such as the Volvo XC60, position the company for future growth.

Financial highlights

• Q4 revenue was EUR 138 million, down 7.8% year-over-year; adjusted EBIT for Q4 was EUR 12.7 million with a 9.2% margin.

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

• Net leverage ended at 1.8x adjusted EBITDA for both Q4 and the full year, up from 1.6x last year.

• Series business contributed 85.9% of Q4 revenue, with declines mainly in Europe and Asia.

• Tooling revenue in Q4 was EUR 19.4 million, slightly below last year due to project phasing.

Outlook and guidance

• Midterm adjusted EBIT margin guidance of 11%-12% remains valid, supported by ongoing restructuring and ramp-up of US EV platform business.

• Management expects continued market volatility in 2025 due to unpredictable customer behavior and governmental policies.