Novem Group S.A.

Latest Results (08.11.2025):

In Q1 2025/26, Novem Group S.A. reported a challenging quarter marked by an 8.0% decline in revenue to €128.9 million compared to the same period last year. The company experienced a significant contraction in operating performance—with adjusted EBIT dropping to €7.7 million (6.0% margin) from €14.2 million—and implemented cost optimisation measures amid market headwinds. Despite these challenges, favorable finance income and lower finance costs led to a robust turnaround in the overall financial result, while capital expenditure and free cash flow showed signs of improvement.

Revenue Performance

Novem Group S.A.’s revenue in Q1 2025/26 fell by 8.0% year-on-year to €128.9 million. The decline was primarily driven by lower revenue in the Tooling segment, although adverse currency effects partially offset this decrease, suggesting a slightly higher underlying revenue performance.

Operating and Profitability Metrics

The adjusted EBIT declined to €7.7 million, with the margin dropping from 10.1% in Q1 2024/25 to 6.0% in Q1 2025/26. This reduction was attributed to production delays, slower ramp-up of new business, and customer production halts in key regions, prompting the company to focus on cost optimisation, especially in central functions in Germany.

Financial Result Improvements

The company posted a strong turnaround in its financial result, with finance income surging to €17.7 million (up from €1.3 million) and finance costs decreasing to €-4.2 million (down from €-9.9 million). These factors contributed to a positive overall financial result of €13.4 million in the quarter, which helped improve earnings before taxes despite the challenges in EBIT.

Cash Flow and Investment Focus

Capital expenditure as a percentage of revenue dropped significantly and free cash flow improved from -€3.0 million to €1.3 million. These shifts, in combination with the ongoing cost optimisation measures, indicate a focused approach to stabilising and improving the company’s operating performance in a difficult market environment.