NORMA Group delivers significantly higher profitability in the second quarter of 2026; Industry Applications continues to grow

NORMA Group significantly improved its profitability in the second quarter of 2026 in a persistently challenging sales environment. Adjusted for currency effects, Group sales were slightly above the prior-year level; the reported decline in sales was attributable to negative currency effects. At the same time, adjusted EBIT and the adjusted EBIT margin increased significantly.

CEO Birgit Seeger: “In the second quarter, we demonstrated that NewNORMA is delivering results. In a persistently challenging sales environment, we significantly improved our profitability and continued to advance operational execution. We are particularly pleased with the strong performance of Industry Applications, with new orders in attractive growth markets such as data centers, battery energy storage systems and energy infrastructure. Our focus remains clear: better quality of sales, greater operational excellence, stronger cash flow orientation and disciplined capital allocation to create sustainable value.”

Organic sales slightly above prior-year level; operational excellence significantly improves profitability

Adjusted for currency effects, Group sales grew by 0.1% in the second quarter of 2026. This means that sales were slightly above the prior-year quarter on an operational basis. Reported Group sales amounted to EUR 211.8 million, down 0.6% from the prior-year figure. This decline was attributable to negative currency effects. Strong sales performance in the Industry Applications business unit offset the persistently weak demand in the Mobility & New Energy unit.

Adjusted earnings before interest and taxes (adjusted EBIT) improved to EUR 7.6 million in the second quarter, significantly exceeding the prior-year figure (Q2 2025: EUR 2.3 million). The adjusted EBIT margin increased to 3.6%, up from 1.1% in the same quarter of the prior year. This represents a further increase in the adjusted EBIT margin compared to the first quarter of 2026.

Earnings were positively impacted in particular by the improved gross margin resulting from lower material costs, as well as by the measures consistently implemented as part of the NewNORMA transformation to reduce personnel and general expenses. NORMA Group also benefited from disciplined cost management across all regions.

Net operating cash flow amounted to EUR 6.6 million in the second quarter of 2026 (Q2 2025: EUR 31.6 million). The year-on-year decline is primarily attributable to the fact that operating cash flow in the prior-year quarter included contributions from the Water Management business, which has since been divested.

Industry Applications grows significantly and wins business in attractive addressable markets

The Industry Applications business unit continued its positive performance in the second quarter of 2026. Adjusted for negative currency effects, the business unit achieved growth of 8.4%. Including currency effects, sales rose to EUR 70.6 million, up 7.0% from the prior-year period (Q2 2025: EUR 65.9 million). Growth was driven in particular by increasing demand in attractive industrial application areas as well as strong performance in the Americas and Asia-Pacific regions. The addressable market is expanding as a result of structural trends such as digitalization, electrification, energy efficiency and the expansion of decentralized energy infrastructure.

In the Mobility & New Energy strategic business unit, sales adjusted for currency effects were down 3.7% in the second quarter. Including currency effects, sales totaled EUR 141.3 million, down 4.0% from the prior-year figure (Q2 2025: EUR 147.2 million). This development was attributable to the continued challenging market environment in the global automotive industry, particularly in the EMEA and Asia-Pacific regions.

Uneven market development in the regions

In the EMEA region, sales adjusted for currency effects decreased by 3.4% in the second quarter. Including currency effects, sales totaled EUR 112.9 million, down 3.9% from the prior-year figure. Persistently subdued demand from the European automotive industry had a particularly negative impact. The region's profitability, however, improved significantly. The adjusted EBIT margin rose to 2.2%, compared with -1.5% in the same quarter of the previous year. In addition to a lower basis for comparison due to temporary one-time effects in the prior year, this development is largely attributable to measures to improve the cost base that are part of the NewNORMA transformation.

In the Americas region, sales, adjusted for currency effects, increased by 10.0%, driven by strong performance in the Industry Applications business unit. Reported sales rose to EUR 70.4 million, up 8.0% from the prior-year period. The adjusted EBIT margin improved to 5.8% (Q2 2025: 2.4%).

In Asia-Pacific, sales adjusted for currency effects were 7.8% below the prior-year level. Including currency effects, sales totaled EUR 28.5 million, down 6.1% from the prior-year figure. While Industry Applications continued to grow, business in the Mobility & New Energy business unit remained below the prior-year level due to ongoing subdued demand in the Chinese automotive market. The region’s profitability remained at a high level, with an adjusted EBIT margin of 8.3% (prior-year period: 7.9%).

Progress in implementing the NewNORMA transformation

NORMA Group continued to systematically implement its strategic transformation in the second quarter. The focus was on further streamlining the organizational structure, sustainably improving the cost base and implementing measures to enhance new business.

As part of the organizational realignment, further steps were taken to structurally improve the cost base, particularly through personnel measures carried out in accordance with the plan. The socially responsible job cuts in Germany were completed, while measures outside Germany progressed as planned and slightly ahead of schedule. This further streamlined the overhead structure in a sustainable manner.

At the same time, NewNORMA stands for a more focused, higher-margin and more cash flow-oriented sales base. Recurring business and follow-on orders from existing customer relationships increase the predictability of sales development. At the same time, new projects in attractive industrial markets strengthen the quality and growth potential of NewNORMA.

New business successes strengthen growth prospects

In the Industry Applications business unit, NORMA Group won several new projects in structurally attractive and growing markets. These include several projects in the rapidly growing global market for data center infrastructure, including follow-on orders in Malaysia, further project phases in Thailand and new business in Australia. The company also secured orders for applications in battery energy storage systems and energy infrastructure. These successes demonstrate that Industry Applications is gaining momentum and that NORMA Group is further expanding its business in attractive addressable markets.

Mobility & New Energy also achieved notable order successes. NORMA Group won the largest single order in its corporate history and will deliver thermal management systems for future vehicle platforms to a leading global automaker. The contract has a lifetime revenue volume of approximately EUR 157 million. In addition, the company secured another major order for a heavy-duty engine platform from a leading North American commercial vehicle manufacturer. Both of these successes highlight the NORMA Group’s technological strength and the increasing effectiveness of its Sales Push initiative.

First half of 2026 in line with expectations

In the first half of 2026, NORMA Group generated Group sales of EUR 420.5 million (H1 2025: EUR 434.3 million). Adjusted for currency effects, sales declined by only 0.6%. Adjusted EBIT rose to EUR 14.0 million (H1 2025: EUR 2.1 million), while the adjusted EBIT margin improved to 3.3%. This development underscores the operational resilience of the continuing business and the increasing impact of the NewNORMA measures. With the successful completion of the sale of the Water Management business, NORMA Group also has a significantly strengthened balance sheet and net liquidity as of the end of the first half of the year.

Outlook and calendar

Based on business development in the first half of the year, NORMA Group confirms its forecast for financial year 2026. The company continues to expect sales growth of approximately 0% to 2% and an adjusted EBIT margin in the range of approximately 2% to 4%. Net operating cash flow is still expected to range between approximately EUR 10 million and approximately EUR 20 million.

On July 1, 2026, NORMA Group’s shareholders approved the capital measures proposed at the Annual General Meeting, thus laying the foundation for the further return of a portion of the proceeds from the sale of the Water Management business.

NORMA Group will provide an update on its strategy on October 19, 2026, outlining the next steps in its strategic development.

Other dates and additional information

NORMA Group will publish figures for the third quarter on November 3, 2026. Additional information on the business results can be found here. For press photos, please visit our Press Area.