Novem Group FY Revenue Falls 5.6% on Weak Customer Demand
Novem Group FY Revenue Falls 5.6% on Weak Customer Demand
Auto interior supplier Novem Group reported preliminary FY 2025/26 revenue fell 5.6% amid muted demand. Adjusted EBIT dropped 35%, while full-year free cash flow rose nearly 70% despite a challenging trading environment.
Outlook and Strategy
Novem anticipates an improved cost structure after completing a severance program in Germany. The company notes headwinds from protectionism, tariffs, and macroeconomic uncertainties persist. Despite this, it highlights a robust order intake of over €60 million, including new business in China.
Result Drivers
Tooling Business: Q4 revenue growth was driven by strong Tooling business due to favorable project phasing. Weak Customer Demand: Series revenue declined due to ongoing weak customer call-offs, especially in Europe and Americas. Adverse FX Effects: Negative foreign exchange effects weighed on revenue in Q4.
Key Financial Details
Revenue: €510.90 million (in line with consensus). Adjusted EBIT: €31.80 million. Free Cash Flow: €48.10 million.
Analyst Coverage
The average analyst rating is 'buy', with 2 'strong buy' or 'buy', 1 'hold', and no 'sell' or 'strong sell'. Wall Street's median 12-month price target is €3.05, about 18.2% above its May 27 closing price of €2.58.
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