Novem Group S.A. Faces Challenging Market in 2024/25

Novem Group S.A. has reported its preliminary financial results for 2024/25, marked by a revenue decline of 14.8% compared to the previous year, totaling €541.5 million. This drop is attributed to weak demand and market volatility, particularly from discussions around US tariffs. Despite these challenges, Novem maintained an Adjusted EBIT margin of 9.0%.

Q4 2024/25 saw revenue series decrease by 8.4%, influenced mainly by reduced demand in Europe and Asia. Additionally, restructuring efforts in Žalec, Slovenia, aim to improve operational utilization. Remarkably, despite lower revenues, Novem's free cash flow increased to €26.6 million in Q4, evidenced by robust order intake and growth investments.

The company's working capital decreased by €9.5 million due to strategic management of trade receivables and payables. Novem's medium-term outlook remains optimistic with strong future business prospects and control over financial metrics.