NORMA Group closes out financial year 2025 in line with forecast; continues strategic realignment

NORMA Group closed out the 2025 financial year in line with its forecast and reached an initial milestone in its strategic realignment. In a challenging market environment marked by generally declining customer demand and significant volume effects, sales and earnings fell short of the prior year levels. With the successful sale of the water management business and a stronger capital structure, the company is proceeding with its transformation course and focusing on the further structural stabilization of the business.

CEO Birgit Seeger: “2025 marked the beginning of NORMA Group’s realignment. In a challenging market environment, we met our forecast and, at the same time, laid the foundation for NewNORMA with the sale of the water business. We have already given our shareholders a stake in the sale of the water business through an initial share buyback program and are also planning further steps to return capital. With a strengthened balance sheet, strategic priorities and a rigorous transformation program, we have everything we need to improve our operational performance gradually and sustainably.”

Forecast met in challenging market environment

Group sales in financial year 2025 amounted to EUR 821.7 million and was thus 6.8 percent below the prior year figure (2024: EUR 881.8 million). Currency effects had an adverse impact of -2.1 percent. The main reasons for the decline included lower orders from vehicle manufacturers in the Mobility & New Energy business unit and subdued demand in parts of the industrial business.

Adjusted earnings before interest and taxes (adjusted EBIT) totaled EUR 6.3 million (2024: EUR 33.0 million). The adjusted EBIT margin was 0.8 percent (2024: 3.7 percent) and was thus at the upper end of the forecast corridor of 0 to 1 percent.

The result was significantly impacted by substantial declines in volume over the course of the year. At the same time, a cost base that remained high relative to lower capacity utilization – particularly in the area of personnel – had a negative effect on profitability. This was offset by strict cost discipline and cost savings in materials and energy. These measures, however, were only able to partially offset the negative impact of lower volumes.

Net operating cash flow reached EUR 95.8 million (2024: EUR 105.4 million), demonstrating robust operating cash generation even in a challenging market environment. Net debt decreased by 4.0 percent to EUR 316.1 million as of December 31, 2025 (December 31, 2024: EUR 329.2 million).

As announced, NORMA Group has allocated a significant portion of the proceeds from the sale of its water management business toward further reducing its financial liabilities. Following the completion of the transaction, the company is now net debt-free.

Advancing strategic realignment

In addition to the sale of its water management business, NORMA Group also systematically optimized its global footprint over the past year. In the Asia-Pacific region, the company consolidated its production sites in China and its distribution centers in Australia. In the Americas, NORMA Group currently consolidates its production for metal components in Mexico at a modern facility in Juárez, sustainably improving efficiency and production structures.

Structural measures were also initiated in Germany: A voluntary redundancy program was agreed on for relevant areas at the Maintal and Marsberg sites. In total, NORMA Group will cut 400 jobs worldwide by 2028.

The company plans to generate annual savings of up to EUR 42 million by 2028 compared to the 2024 cost base. Initial effects from the measures implemented became visible in financial year 2025 and made a positive contribution to operating performance.

By focusing on Industry Applications as well as Mobility & New Energy, NORMA Group is creating a structural foundation for a sustainable improvement in profitability.

Downward trend in business units and regions due to weak end markets

Since the third quarter of 2025, NORMA Group has been reporting with reference on its continuing operations: Industry Applications and Mobility & New Energy. The following figures therefore relate to these continuing operations.

Group-wide, sales in the Industry Applications business unit amounted to EUR 251.7 million, up 8.3 percent from the prior-year figure due to reallocations. Without these effects, sales were down 5.7 percent, reflecting both weaker business performance and negative currency effects. Sales in Mobility & New Energy were down 12.2 percent at EUR 570.0 million. Excluding reallocation effects, the decline was 7.4 percent; this was due in part to negative currency effects and, above all, to lower business volume.

In the EMEA region, sales in financial year 2025 totaled EUR 438.3 million, down 6.5 percent from the previous year. This was countered by strict cost discipline and cost savings in materials and energy. Revenue in the Mobility & New Energy segment declined while Industry Applications benefited from one-time reallocations that more than offset the volume decline in sales.

In the Americas region, sales for financial year 2025 totaled EUR 258.7 million, down 7.5 percent from the previous year. In addition to negative currency effects (-4.3 percent), sales development was particularly impacted by declining business in Mobility & New Energy. By contrast, the automotive aftermarket business in North America performed well while the industrial and distribution environment remained sluggish overall.

In the Asia-Pacific region, sales in financial year 2025 were down 6.4 percent to EUR 124.6 million. Currency effects had a negative impact of 4.6 percent. At the same time, lower demand from the Chinese automotive industry in the Mobility & New Energy business unit was the primary cause of lower sales. Sales in the Industry Applications business unit were slightly higher than in the previous year, also due to reallocations.

Share buyback offer successfully completed, capital reduction planned

As a first step in the announced capital return, NORMA Group successfully completed a public share buyback offer on March 27, 2026. At a price of EUR 16.59 per share, the share buyback offer was oversubscribed several times by the shareholders. The company can therefore buy back shares amounting to approximately 10 percent of the share capital and thus already return a total of around EUR 52.9 million to its shareholders. The details of the completion of the buyback program will be published shortly on the NORMA Group website and in the German Federal Gazette (“Bundesanzeiger”). In addition, the Management Board and Supervisory Board are expected to propose a capital reduction by cancelling shares in a simplified procedure to the Annual General Meeting as the next step. Together with the share buyback that has already been implemented, a total of up to EUR 260 million from the net cash inflow from the sale of the water management business is to be returned to shareholders.

With the combination of the share buyback and the planned capital reduction, NORMA Group is sharing the proceeds from the sales with its shareholders in a targeted manner. At the same time, the company is maintaining its financial flexibility to consistently implement its transformation and planned growth in the coming years.

Dividend proposal

The Management Board and Supervisory Board will propose to the Annual General Meeting that a dividend of EUR 0.14 per share entitled to a dividend be paid for financial year 2025 (2024: EUR 0.40 per share). The basis for the dividend proposal is NORMA Group SE’s statutory distributable earnings. The proposed distribution is in line with NORMA Group’s long-term dividend policy, which provides for a payout ratio of 30 to 35 percent of adjusted net profit for the year.

Okan Celiker takes over the CFO role in an acting capacity

By mutual agreement with the Supervisory Board, Annette Stieve has agreed to step down from her role. Okan Celiker will take over the role of Group CFO in an acting capacity with immediate effect. He has held various management positions at NORMA Group for many years, most recently as CFO of the EMEA region and as Head of the Strategy Department. The Supervisory Board conducts a structured search process to fill the CFO position on a permanent basis.

Strategic priorities and forecast 2026

With NewNORMA, the company is shifting its focus to the business with advanced joining solutions. The transformation will follow a clear roadmap over the course of the next three years: 2026 will mark a new beginning following the successful sale of the water business; the focus in 2027 will be primarily on the disciplined improvement of operational performance. During these years, the company aims to return to a growth trajectory, which is expected to stabilize and accelerate starting in 2028.

In 2026, NORMA Group will lay the structural foundation as an “Industrial Powerhouse.” Emphasis will be placed on further restructuring, reducing complexity and adjusting the cost base. This includes reducing personnel costs and rigorously implementing the Target Operating Model to simplify structures, standardize processes and make the organization as a whole more effective and efficient.

At the same time, the company continues to optimize its global production and site footprint to utilize capacities more efficiently and strengthen its competitiveness in the long term. NORMA Group is also intensifying its market development efforts in defined focus segments with the aim of increasing profit margins on new orders, strengthening the project pipeline and order books, and thereby better utilizing production capacities.

These measures form the basis for accelerated growth going forward. The core business in high-growth segments will be further developed in a disciplined manner, both organically and through targeted investments, potentially including value-enhancing acquisitions to complement the portfolio. Part of the proceeds from the sale of the water business can also be used for this purpose.

For financial year 2026, NORMA Group expects revenue growth of approximately 0 to 2 percent. The adjusted EBIT margin is expected to reach around 2 to 4 percent. Net operating cash flow is expected to range from approximately EUR 10 million to approximately EUR 20 million.

CEO Birgit Seeger: “2026 will be a year of reset for us in what remains a challenging environment. Even so, we are confident that we can achieve a significant improvement in profitability alongside moderate sales growth in the current year. We are convinced that the consistent implementation of our planned measures will form the basis for sustainable, profitable growth at NORMA Group.”

AGM on July 1, 2026 and further dates

The announced proposal by the Management Board and Supervisory Board for the upcoming Annual General Meeting to reduce the company’s capital necessitates a number of preparatory steps. In order to adequately complete these preparations, the Management Board has decided to reschedule the AGM. NORMA Group’s AGM will now take place on July 1, 2026, in Frankfurt/Main.

NORMA Group will publish its figures for the first quarter of 2026 on May 5, 2026.