Novem Group S.A.: Preliminary results 2025/26 reflect muted market conditions

Novem Group S.A.: Preliminary results 2025/26 reflect muted market conditions

• FY 2025/26 revenue of €510.9 million, -5.6% below FY 2024/25
• Adj. EBIT¹ of €31.8 million, -35.0% below PY
• FY 2025/26 free cash flow¹ of €48.1 million, 68.9% above PY
• Headwinds from rising protectionism, tariffs and macroeconomic uncertainties persisted

Luxembourg, 28 May 2026 – Novem Group S.A. today published its preliminary results for its financial year 2025/26, including the figures for the fourth quarter. In the past 12 months, the Company generated a total revenue of €510.9 million and came in below previous year by -5.6%.

Modest growth in revenue due to favourable tooling business

In the fourth quarter of 2025/26, total revenue of €138.6 million increased by 0.4% against prior year. Revenue Series of €112.1 million fell short of last year by -5.4%, predominantly attributable to ongoing weak customer call-offs, while revenue Tooling of €26.4 million surpassed prior year by 36.3% due to a favourable project phasing. Like in the preceding quarter, adverse FX effects weighed on top line. Measured at constant foreign exchange rates, revenue in Q4 2025/26 would have been higher by €6.3 million or 4.5%. By regions, revenue in Europe (€+10.5 million y/y) rose significantly due to strong Tooling business, driven by several project closures. By contrast, top line in Americas (€-8.8 million y/y) was impacted by both lower revenue Series and Tooling. Revenue in Asia (€-1.1 million y/y) was hit by differently phased Tooling, while Series remained steady at the same level as previous year.

Adj. EBIT of €9.6 million in Q4 2025/26 declined by -24.3% compared to last year’s figure but resulted in a solid Adj. EBIT margin¹ of 7.0% (PY: 9.2%). In line with expectations, Q4 2025/26 was the most profitable quarter of the financial year 2025/26, benefitting from a strong Tooling business. Implemented cost-control initiatives, including short-time work in Germany, helped to sustain profitability. However, bottom line was negatively affected by continued soft demand, particularly in Europe and Americas, and resulting weak cost coverage. Looking ahead, with the voluntary severance program in Germany largely completed, an improved cost structure is anticipated.

Successful extension of term loan and robust order intake

By the end of April 2026, Novem secured the extension of its term loan with lower term debt, underscoring its strong commitment to deleveraging and financial stability. Over the course of the financial year 2025/26, Novem achieved a solid order intake of more than €60 million, including new acquisitions in China and additional business wins with existing customers.

Robust full-year free cash flow

A key strength throughout financial year 2025/26 was a strong cash generation. Despite a softer free cash flow of €9.7 million (PY: €26.6 million) in the fourth quarter, full-year free cash flow rose to €48.1 million from €28.5 million in the prior year, corresponding to a significant year-on-year improvement of nearly 70% amid a challenging trading environment.

Capital expenditure¹ of €4.6 million in the fourth quarter of 2025/2026 remained almost stable compared to prior year (PY: €4.5 million). On a full-year basis, overall investments amounted to €12.4 million, resulting in an underlying capex ratio of 2.4%.

Stable net leverage ratio

As of 31 March 2026, total working capital¹ amounted to €132.1 million, up 6.7% compared to previous year. The unfavourable deviation of €-8.3 million was primarily due to lower payables and higher trade receivables.

Gross financial debt¹ of €287.3 million was below prior year’s level (31 March 2025: €298.3 million) by €-11.1 million. As of 31 March 2026, net financial debt¹ came in at €112.1 million and strengthened sequentially versus last year (€148.2 million). Net leverage ratio¹ remained unchanged at 1.8x Adj. EBITDA¹ compared to previous year (1.8x).

An accompanying presentation on the preliminary FY 2025/26 results can be found on the Investor Relations website under Reports & Presentations. This press release contains unaudited financial information, which may be subject to change. The final figures and the Annual Report for the financial year 2025/26 will be published on 25 June 2026 on our Investor Relations website.

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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 presentation on the preliminary results 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, Slovenia, Honduras, Mexico, the USA and China. Novem employs about 4,500 people at 11 locations and achieved revenue of more than €541 million in FY 2024/25.

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