EQS-News: Novem Group S.A.: Q1 2025/26 figures show a subdued start to the year

Novem Group S.A.: Q1 2025/26 figures show a subdued start to the year

• Q1 2025/26 revenue of €128.9 million, -8.0% below Q1 2024/25
• Adj. EBIT¹ of €7.7 million, -45.9% below PY
• Sluggish demand and unfavourable cost coverage weigh on performance

Luxembourg, 07 August 2025 – Novem Group S.A. today published its figures for the first quarter of its financial year 2025/26. In the first three months of 2025/26, the Company generated a total revenue of €128.9 million, thus equalling a decline of -8.0% over prior year.

Revenue impacted by weak call-offs

In Q1 2025/26, revenue Series recorded at €116.8 million, falling short of last year by -2.5% due to continued lower demand, especially in Asia and Americas. Revenue Tooling of €12.2 million remained substantially below prior year’s level by -40.1% because of a different project phasing. The ongoing discussions about US tariffs have intensified existing uncertainties, further dampening customer sentiment and impacting order dynamics. On top, FX headwinds further reduced reported revenue; excluding currency effects, revenue would have been higher by 4.0% or €5.2 million. On a segmental basis, revenue in Europe (€+4.6 million y/y) increased, with favourable development in both Series and Tooling, primarily supported by the ramp-up of a specific platform and higher customer compensation payments. Top line in Americas (€-13.7 million y/y) decreased compared to previous year mainly due to Tooling business, while Series also showed a slight decline because of a three-week customer plant shutdown. In Asia (€-2.1 million y/y), revenue was adversely affected by the ongoing weakness in Series and poor call-offs.

Adj. EBIT of €7.7 million in Q1 2025/26 came in below last year by €-6.5 million, resulting in an Adj. EBIT margin¹ of 6.0% (PY: 10.1%). Again, bottom line was impaired by weak revenue development, especially in Americas and Asia. The decline in sales thus led to an insufficient cost coverage and burdened profitability. Further restructuring activities and cost control initiatives with a focus on central functions in Germany were implemented to protect the operating result. Nonetheless, customer compensation payments, one-off pricing impacts and the release of accruals supported the Adj. EBIT.

Lower capex supports free cash flow

In the first quarter of 2025/26, free cash flow¹ totalled €1.3 million and showed an improvement of €4.3 million compared to previous year (€-3.0 million). This development was supported by a higher operating cash flow, primarily driven by higher profit for the period and income tax refunds.

Capital expenditure¹ of €1.8 million declined significantly in Q1 2025/26 (PY: €5.0 million). Most of the investments were growth-related, with a large portion invested in Pilsen (Czech Republic). The reduced investments led to an underlying capex ratio of 1.4% (PY: 3.6%).

Improved working capital

As of 30 June 2025, total working capital¹ amounted to €136.9 million and fell short of last year (€142.2 million). The favourable deviation of €5.3 million was mainly attributable to lower inventories and trade receivables.

Gross financial debt¹ of €293.9 million recorded €-11.6 million below prior year’s figure (30 June 2024: €305.5 million). As of 30 June 2025, net financial debt¹ stood at €150.7 million and improved against last year (€171.2 million). However, net leverage ratio¹ of 2.0x Adj. EBITDA¹ exceeded previous year (1.8x).

The interim statement for the first quarter of financial year 2025/26 can be found on the Investor Relations website at Reports & Presentations.

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1   For the definition/calculation of the used Alternative Performance Measures (APMs), please refer to the glossary provided in the corresponding interim statement for the first quarter of financial year 2025/26, which can be found on the Investor Relations website under Reports & Presentations.

About Novem

Luxembourg-headquartered Novem is a globally leading supplier of decorative interior trim parts for the premium automotive industry. Across the range of key materials such as genuine wood, aluminium, carbon and premium synthetics, the Company offers unrivalled quality, technology and innovation to a growing customer base including all major premium carmakers worldwide. Founded in 1947 in Vorbach, Germany, the Company has continuously expanded its global footprint in the Czech Republic, Germany, Italy, Slovenia, Honduras, Mexico, the USA and China. Novem employs about 4,500 people at 12 locations and achieved revenue of more than €541 million in FY 2024/25.

For more information, please visit www.novem.com.