NORMA Group closes second quarter 2025 with stable profitability

NORMA Group achieved a stable level of profitability in the second quarter of 2025 despite what remains a challenging market environment. Following a weak first quarter of 2025, profitability improved significantly in the second quarter. NORMA Group’s performance was, overall, in line with expectations in the first half of 2025. 

Group sales in the second quarter of 2025 were down 5.2 percent over the prior year to EUR 290.4 million (Q2 2024: EUR 306.3 million). The fall in the US dollar exchange rate had a particularly negative impact: Currency effects led to a 3.0 percent dip in sales; in addition, muted demand put pressure on sales. Adjusted earnings before interest and taxes (adjusted EBIT) was EUR 23.4 million in the second quarter of 2025, a year-on-year decline of 10.4 percent (Q2 2024: EUR 26.1 million). The adjusted EBIT margin was 8.1 percent (Q2 2024: 8.5 percent) and was thus slightly below the prior-year figure, but improved significantly compared to the first quarter of 2025 (Q1 2025: 3.6 percent). Net operating cash flow was EUR 31.6 million in the second quarter of 2025 (Q2 2024: EUR 43.6 million).

CEO Mark Wilhelms: “Capacity utilization remains low in key customer industries such as automotive production, construction and mechanical engineering, while geopolitical uncertainty remains high. These factors are having a noticeable impact on our sales. Thanks to strict cost discipline, we managed to achieve stable profitability despite the challenges faced in the quarter. We expect demand to moderately recover step by step in the coming months and, in the meantime, we will consistently pursue our strategy of focusing on becoming an industrial supplier.”

Development in the business regions

In the Americas region, sales in the second quarter of 2025 totaled EUR 137.2 million (Q2 2024: EUR 146.4 million). This includes negative currency effects of 5.1 percent; the overall decline of 6.3 percent compared to the same period last year is therefore primarily attributable to currency effects. As of financial year 2025, NORMA Group allocates customers in the construction and agricultural machinery and stationary power supply industries to the Industry Applications business unit in order to better serve customer needs (these customers were previously allocated to Mobility & New Energy). Adjusted for this effect, Industry Applications recorded slight organic growth. Water Management also grew organically, although this was offset by currency effects. At Mobility & New Energy, business volume was significantly lower than in the previous year due to the weak market; sales were also reduced by negative currency effects and the aforementioned reallocation of customers.

In the EMEA region, the company generated sales of EUR 119.8 million in the second quarter of 2025. This represents a decline of 2.3 percent compared to the prior-year quarter (Q2 2024: EUR 122.7 million). Adjusted for currency effects and the reallocation of customers, sales in the second quarter were slightly below the prior-year level in all business units. Demand from the European automotive industry for joining technology failed to recover in the second quarter. In the Industry Applications business unit, sales increased significantly in nominal terms due to the allocation of customer business related to technology for construction and agricultural machinery. The Water Management business grew slightly.

In the Asia-Pacific region, sales declined by 10.2 percent year-on-year to EUR 33.4 million in the second quarter (Q2 2024: EUR 37.2 million). This includes a decline of 4.8 percent due to negative currency effects. Ongoing restrained demand from the automotive sector in China led to a lower business volume in Mobility & New Energy. Business in the area of Industry Applications continued to show no signs of recovery in the second quarter. This is contrasted by positive development at Water Management, which grew compared to the second quarter of the previous year.

First half of 2025: Business development in line with expectations

In the first six months of the 2025 financial year, NORMA Group generated Group sales of EUR 574.6 million. This represents a decrease of 6.5 percent compared to the prior-year period (H1 2024: EUR 614.8 million). Before currency effects (-0.9 percent) and acquisitions (+0.1 percent), the decline amounted to 5.8 percent. Adjusted earnings before interest and taxes (adjusted EBIT) amounted to EUR 33.7 million in the period from January to June and were therefore significantly below the prior-year figure (H1 2024: EUR 51.8 million). The adjusted EBIT margin was 5.9 percent (H1 2024: 8.4 percent). Additional tariffs had a dilutive effect on margins: In the first half of the year, approximately EUR 3.8 million in tariff-related costs incurred on shipments to the USA. NORMA Group was able to pass on most of these costs to customers.

Net operating cash flow amounted to EUR 34.7 million in the first half of 2025, once again reaching a high level (H1 2024: EUR 41.2 million). In addition to a lower increase in working capital, restrained investment activity had a positive effect on cash flow.

Forecast for full-year 2025 confirmed

The Management Board confirms the expectations for sales, profitability and cash flow for the current financial year that were published in March 2025: For the full year, NORMA Group anticipates Group sales of around EUR 1.1 billion to around EUR 1.2 billion. In terms of profitability, the company expects an adjusted EBIT margin of around 6 to around 8 percent. Net operating cash flow is expected to be in the range of around EUR 75 million to around EUR 95 million.

Transformation to a focused industrial supplier

As part of the announced transformation into a focused industrial supplier, NORMA Group is moving ahead as planned with the divestment process for the Water Management business unit. The objective of the transformation is to focus NORMA Group on its core business with advanced joining technology and to position the company for sustainably profitable growth. With this in mind, the company is developing a detailed set of measures with three key components: The growth plans in the Industry Applications business unit will be brought forward, administrative costs will be reduced and site capacities optimized. The set of measures will lead to savings as early as 2025, which should increase to a cumulated range of EUR 82.5 to 91.5 million globally by 2028. The global costs for implementation are expected to be in the range of EUR 54 to 61 million. The transformation will be completed by the end of 2028.

NORMA Group in figures

Other dates and additional information

NORMA Group will publish figures for the third quarter on November 4, 2025. Additional information on the business results can be found here. For press photos, please visit our Press Area.