Novem Group FY revenue falls 5.6%, hurt by weak customer demand
Novem Group FY revenue falls 5.6%, hurt by weak customer demand
Overview
Auto interior supplier's preliminary FY 2025/26 revenue fell 5.6% amid muted demand
Adjusted EBIT dropped 35% as macroeconomic headwinds persisted
Full-year free cash flow rose nearly 70% despite challenging trading environment
Outlook
Company anticipates improved cost structure after completing severance program in Germany
Novem says headwinds from protectionism, tariffs and macroeconomic uncertainties are persisting
Company highlights robust order intake of more than €60 mln, including new business in China
Result Drivers
TOOLING BUSINESS - Q4 revenue growth was driven by strong Tooling business due to favourable 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
Company press release: ID:nEQ3r4j39a
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
FY Revenue |
| EUR 510.90 mln |
|
FY Adjusted EBIT |
| EUR 31.80 mln |
|
FY Free Cash Flow |
| EUR 48.10 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
Wall Street's median 12-month price target for Novem Group SA is €3.05, about 18.2% above its May 27 closing price of €2.58
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)