Novem Group (NVM) Q1 2026 earnings summary

Executive summary

• Revenue declined 8.0% year-over-year to €128.9 million, mainly due to project phasing in Tooling, adverse FX effects, and temporary OEM production halts, while Series business remained relatively stable.

• Adjusted EBIT margin dropped to 6.0% from 10.1% in the prior year, reflecting lower profitability amid market headwinds and production stoppages.

• Serial production was supported by a ramp-up of a premium U.S. EV model but impacted by stoppages and holidays.

• New business wins were secured with Volvo and General Motors despite the challenging environment.

• Cost optimization and restructuring initiatives are ongoing, especially in Germany.

Financial highlights

• Adjusted EBIT fell to €7.7 million from €14.2 million year-over-year, with margin at 6.0%.

• Free cash flow improved to €1.3 million from -€3.0 million year-over-year.

• Net leverage ended at 2.0x Adjusted EBITDA, up from 1.8x.

• Net income rose to €15.6 million, up from €2.1 million, driven by positive financial results from currency translation.

• Capital expenditure reduced to €1.8 million, with a capex ratio of 1.4%.

Outlook and guidance

• Q1 margin was affected by temporary effects; delayed projects are expected to support the second half of the year.

• Strategic actions and cost discipline are being prioritized to address weak demand and cost coverage.

• CapEx ratio is expected to be in the 2%-2.5% range for the year, up from the current 1.4%.

• Cost optimization measures have been initiated, focusing on central functions in Germany.