Novem Group, which supplies interior components to the automotive sector, released preliminary figures for fiscal year 2025/26 showing top-line pressure driven by subdued customer demand. The company reported full-year revenue of €510.90 million, representing a 5.6% decline versus the prior period.
Profitability was more significantly affected: adjusted EBIT fell by 35%, landing at €31.80 million. Despite this deterioration in operating profit, Novem recorded a marked improvement in cash generation, with full-year free cash flow rising by nearly 70% to €48.10 million.
Quarterly details show a mixed performance across Novem's businesses. The Tooling division delivered strong results in the fourth quarter, a benefit the company attributed to favourable project phasing. By contrast, Series revenue continued to contract as weak customer call-offs persisted - a trend the company highlighted as especially evident in Europe and the Americas. The quarter was further impacted by negative foreign-exchange movements, which weighed on reported revenue.
On the commercial front, Novem said order intake during the period exceeded €60 million, and included new business wins in China. Management indicated that cost structure improvements are expected once a severance program in Germany is completed, implying lower ongoing personnel-related charges going forward.
At the same time, the company cautioned that broader external pressures remain. Novem pointed to sustained headwinds from protectionist measures, tariffs and macroeconomic uncertainties as factors that continue to affect its operating environment.
This set of preliminary results presents a mixed picture: declining revenue and a significant drop in adjusted EBIT on the one hand, and strengthened free cash flow plus robust order intake on the other. The company is banking on the combination of completed restructuring in Germany and new orders - including from China - to stabilise its outlook amid persistent external risks.