Novem Group (NVM) Q4 2026 earnings summary

Executive summary

• Full-year revenue declined 5.6% year-over-year to €510.9 million amid persistent market challenges, including soft demand, geopolitical tensions, and rising protectionism.

• Q4 revenue stabilized at €138.6 million, up 0.4% year-over-year, with adjusted EBIT margin at 7.0%.

• Adjusted EBIT for the year was €31.8 million, down 35.0%, with a margin of 6.2%.

• Free cash flow for the year reached €48.1 million, up 68.9% year-over-year, highlighting strong cash generation despite revenue decline.

• New business wins in China and with established OEMs, including GM and Porsche, supported order intake above €60 million.

Financial highlights

• Q4 adjusted EBIT was €9.6 million, with a margin of 7.0%, down 24.3% year-over-year.

• Net financial debt declined to €112.1 million from €148.2 million last year.

• CapEx for the year totaled €12.4 million, with a CapEx ratio of 2.4%.

• Working capital at year-end was €132.1 million, up 6.7% year-over-year, with trade working capital rising to €48.9 million.

• Net leverage ratio held steady at 1.8x adjusted EBITDA.

Outlook and guidance

• Demand expected to remain volatile in the next financial year, with flat to slightly increasing volumes in the first two quarters.

• Margin improvement expected to be gradual, supported by restructuring and cost measures, but headwinds from input costs and geopolitical risks persist.

• Diversification into aircraft interiors progressing, with first turnover expected by end of 2027/2028 and reinforced by positive feedback at Aircraft Interiors Expo.

• Improved cost structure anticipated following completion of voluntary severance program in Germany.

• Continued focus on cost-control initiatives and deleveraging to support financial stability.