Ladies and gentlemen, thank you for standing by. Welcome, and thank you for joining the Q3 2024/2025 results of Novem Group, which will be presented by the Chief Executive Officer, Markus Wittmann, and Chief Financial Officer, Benjamin Retzer. Throughout today's presentation, all participants will be in a listen-only mode. The presentation will be followed by a question and answer session. If you would like to ask a question, you may press star followed by one on your touchtone telephone. Please press the star key followed by zero for operator assistance. I would now like to turn the conference over to Markus Wittmann. Please go ahead.
Thank you, Valentina. Good afternoon, ladies and gentlemen, and welcome to the presentation of Novem Group's third quarter results. During the past quarter, Novem secured two new contracts. The first one is the third EV model of the Jaguar Panthera platform, and the second one is the Audi Q8 e-tron. In quarter three, we achieved a revenue of EUR 124 million, which represents a decrease of nearly 11% compared to last year's Q3. In addition to the reduced call-offs, the quarter was further impacted by extended holidays during the Christmas season. The resulting fewer working days and lower revenue led to an adjusted EBIT of 8.1%. Looking ahead, we see ongoing discussions regarding model strategy and launch delays, which are reflected in reduced call-offs and general production interruptions, especially in Europe and China.
Under these circumstances, we do not foresee a market recovery in the medium term. These new insights have been incorporated in the current running budget process for the next fiscal year, and brought us to the conclusion to adjust our midterm guidance to 11% to 12% adjusted EBIT. Going ahead with the financial highlights. Revenue, as said, EUR 124 million in Q3. Adjusted EBIT, EUR 10 million, compared to EUR 16.6 last year, and ending up in a margin, EBIT, adjusted EBIT margin at 8.1%. Free cash flow at EUR 1.3 million, and net leverage worsened, to all these circumstances, to 2.1x adjusted EBIT.
Going ahead with the year-to-date financial highlights, the revenue year-to-date in Q3 ended up with EUR 403.5 million, which means around about 17% less than last year's. Adjusted EBIT is EUR 18.4 million lower at EUR 36.2 million. In margin, we ended up year-to-date to stand year-to-date at 9.0%, with a cash flow of EUR 1.9 million. net leverage as at 2.1x Adjusted EBIT. Yeah, saying this, I'd like to hand over to our Chief Financial Officer, Benjamin, to present the detailed financial figures. Benjamin, thank you.
Thank you very much, Markus. I would also like to take this opportunity to welcome you to today's Q3 results presentation, and together, we will go through all the details of the group results, starting with the revenue development. Total revenue, as already said and heard, of EUR 124.0 million in quarter three, decreased by minus EUR 14.7 million or minus 10.6% in comparison to last year. In terms of Series, revenue series of EUR 108.0 million, diminished by minus EUR 15.1 million or minus 12.2% versus prior year, and contributed to, or contributed 87.1% to total revenue.
This drop in series business was influenced by continuously subdued call-offs, above all in Europe and Asia, and extended customer plant holidays over Christmas and into the new calendar year. Top line benefited from favorable FX effects, so revenue in Q3 would have been lower by -0.6 million or -0.4% at constant FX rates. Tooling added EUR 16.0 million to total revenue and noted slightly above previous year by EUR 0.4 million or +2.3%, predominantly driven by a different project phasing. On a 12-month basis, total revenue recorded at EUR 553.2 million, and decreased by -2.6% compared to last quarter. So to summarize, we are, again, anything but satisfied with this picture.
The top line continued to suffer from a further deterioration in customer sentiment and the associated negative market dynamics, especially in the premium segment and market, underpinned with disruptive discussions and their structural impact on the model strategies, especially in Europe, and therefore, as mentioned, upholding a negative momentum. This development is also visible in the adjusted EBIT, both in absolute terms and percentage-wise, which came out at EUR 10.0 million or 8.1% for quarter three. On a year-to-date basis, and in these persistently challenging times, we see a solid adjusted EBIT margin of 9.0% or EUR 36.2 million. Compared to quarter two, in which a adjusted EBIT margin of 8.6% was reported, the margin dilution to 8.1% was predominantly influenced by series business as volumes continued to further suffer.
Furthermore, and consequently, the margin was negatively impacted by a poor cost coverage, given the fact that we have not been able to reduce personnel costs as quickly as sales have again fallen, in order to achieve a certain level of productivity and efficiency appropriate to that level of low sales volume. In addition, bottom line was negatively affected by an unfavorable product mix as well as model changes. Nonetheless, and despite all these, rigorous cost control and restructuring measures supported the bottom line. In addition, adjusted EBIT benefited from customer compensation payments and release of accruals, both in the range of a mid-single-digit million EUR. As with turnover, last twelve months, adjusted EBIT dropped to EUR 15.6 million and decreased by -11.5% compared to last quarter.
Coming to the free cash flow, Novem generated a free cash flow of EUR 1.3 million and outperformed last year by +EUR 5.2 million. Cash flow from operating activities of EUR 3.6 million was ahead of prior year by +EUR 3.9 million. The main reasons for this development were a small decrease in trade payables in the amount of EUR 13.6 million, reduced inventories, +EUR 10.7 million, both for sure, volume-driven, but also deliberately managed, and a lower decrease in provision in the amount of EUR 8.8 million. Conversely, affected mainly by the net loss or the results for the period and receivables and other non-cash items in the amount of EUR 13.1 million.
Cash flow from investing activities of EUR -2.3 million came in below previous year's figure of EUR -3.66 million, which is primarily due to lower capital expenditure that is also adjusted to the current market situation. Having said this, capital expenditure reached EUR 3.5 million in quarter three, and therefore, EUR -1.2 million below previous year's level, which resulted in an underlying CapEx ratio of 2.8%, compared to last year's number of 3.3%. So nearly half of the capital expenditure in this third quarter was invested at Novem's largest plant in Querétaro, Mexico, with an amount of EUR 1.8 million, and the majority of these investments was linked to the industrialization process for a large US EV platform and business.
On a last twelve months basis, capital expenditure of EUR 16.5 million was slightly below last quarter, with a figure of EUR 17.7 million. Based on last twelve months total revenue of EUR 553.2 million, the CapEx ratio recorded at 3.0%, which was slightly below previous quarter, with 3.1%. As of December 2024, total working capital stood -4.0% below prior year, at EUR 143.2 million, in comparison to EUR 149.2 million in prior year. This variance of EUR 6.0 million stem from different factors and developments. On the one hand side, lower inventories in the amount of EUR 12.1 million, trade receivables, EUR 5.6 million, and contract assets, EUR 5.0 million.
And on the other side, higher tooling net, EUR 8.4 million, and lower trade payables, EUR 8.3 million. The decrease in inventories, as heard a couple of seconds ago, was driven mainly by the volume-related decline in stock of raw materials, and lower trade receivables were also volume driven due to the reduced top line. With regards to the higher tooling net amount, this can be understood as an indicator for future series business or platforms to come, also as heard in relation to the aforementioned business with US EV manufacturer. Lower trade payables were also volume driven. Looking at the trade working capital, which means without both tooling net and contract assets, it developed favorable from EUR 58.1 million to EUR 48.7 million on a year-on-year basis.
However, the major KPIs in terms of working capital, DSO of 29 days, in comparison to 33 days in prior year, and DIO of 44 days in comparison to 47 days in prior year, showed an overall positive development year on year, while DPO of 39 days worsened a bit. Having now a look at our capital structure, gross financial debt of EUR 303.5 million was slightly below last year's figure by -EUR 3.9 million. Lease liabilities, by definition, included in the gross financial debt, stood at EUR 53.3 million, compared to EUR 57.7 million in prior year, and therefore declined by -EUR 4.4 million, driven by those factors, repayment on the one-hand side, as well as a FX effect on the other side.
The cash position came in at a solid number of EUR 130.4 million, compared to EUR 125.1 million in prior year, supported by EUR 36.3 million from a non-recourse factoring program, in comparison to EUR 37.2 million in prior year. Therefore, the net financial debt stood at EUR 173.1 million and showed a noticeable improvement against prior year, with an amount of EUR 182.3 million. However, and as already said, the net leverage ratio worsened to 2.1 times compared to previous year, which is primarily due to the negative development of the last twelve months adjusted EBITDA key figure, and resulted in Novem being placed in a margin group that is 25 base points higher.
Now looking into our operating segments, it needs to be noted that the Americas region remained the backbone of the group, accounting for more than half of the total revenue, with stable revenues on prior years level, while both Europe and Asia declined similar to last quarter. Reduced top line in Europe, minus EUR 9.8 million year-on-year, was mainly attributable to revenue series due to the ongoing weak customer sentiment, and which could also not be offset by revenue tooling. Above all, unfavorable development was driven by the EOP of the BMW 5 Series, lower volumes on BMW 7 Series, as well as the model change on Volvo XC90.
Lower top line in Asia, minus EUR 5.0 million year-on-year, was attributable to both tooling and series, with EOP of BMW X3, as well as weaker call-offs of BMW X5. As already mentioned before, stable development in Americas is only a minor change of EUR 0.1 million year-on-year, was positively influenced by higher revenue tooling, which was almost completely offset by series business. Transforming the aforementioned to the adjusted EBIT by the regions, we see that the adjusted EBIT showed a sharp increase in Europe, while Americas dropped significantly and Asia was slightly below prior year. Turnaround in Europe from loss-making adjusted EBIT of minus EUR 3.9 million in prior year to EUR 1.7 million, primarily supported by customer compensation payments, as well as the release of accruals.
In addition, cost savings and improved input costs, such as leased workers and freight costs, also increased the operational result, despite the continued negative development in the top line. adjusted EBIT of EUR 8.5 million in Americas fell short of prior year due to lower release of accruals, as well as an unfavorable product mix, while input costs remained on a stable level. In Asia, adjusted EBIT of -EUR 0.2 million, below prior year, mainly driven by a reduced revenue in both series and tooling. So this brings us already to the end of today's presentation. And again, to summarize, the business climate remains very demanding and challenging, and we are already seeing some sort of volatility or movements due to Mr. Trump's agenda, which is impacting both the global economy and the capital market.
So having that said, and again, as mentioned at the beginning of the presentation, while the overall challenging situation was expected to continue in the short term, it's now also anticipated and substantiated by the current budget process. And because of that, surely not only due to that before mentioned factors, the assumed recovery up to 14 or 15% will not materialize in the medium term. Therefore, and as already announced by Markus at the beginning of the call, we believe it's only reasonable to adjust the medium-term guidance for Adjusted EBIT margin to 11% to 12%. So nonetheless, we are aiming for a positive momentum in the coming quarter, our last quarter before year-end closing, and are increasingly focusing on the ramp-up of our business with OEM manufacturer, which should provide a sense of perspective.
Thank you for taking the time to participate in our call today, and we are now looking forward to addressing any questions you may have.
Ladies and gentlemen, at this time, we will begin the question and answer session. Anyone who wishes to ask a question may press star followed by one on the touch tone telephone. If you wish to remove yourself from the question queue, you may press star followed by two. If you are using speaker-equipped equipment today, please leave the handset before making your selections. Anyone who has a question may press star followed by one at this time. Ladies and gentlemen, if you would like to ask a question, please press, please press star followed by the one on your telephone. There are no questions at this time from the phone. I hand back to Markus Wittmann and Benjamin Retzer for closing comments.
Thank you, Valentina. Thank you, everyone, also from my side, for participating, our Q3 results presentation. As Benjamin said, there are challenging times, now and also ahead of us, but nevertheless, let's think positive. Again, thank you very much for participating, and see you soon. Thank you.
Thank you.
Ladies and gentlemen, the conference is now concluded, and you may disconnect your telephone. Thank you for joining, and have a pleasant day. Goodbye.