Difficult market environment impacts NORMA Group in first quarter of 2025

NORMA Group generated Group sales of EUR 284.2 million in the first quarter of financial year 2025 in a difficult market environment. This corresponds to a decrease of 7.9 percent compared to the prior-year quarter (Q1 2024: EUR 308.5 million). Currency effects had a positive impact of 1.3 percent on sales development.

Adjusted earnings before interest and taxes (adjusted EBIT) was EUR 10.3 million in the first quarter of 2025, a year-on-year decline of 59.9 percent (Q1 2024: EUR 25.7 million). The adjusted EBIT margin was 3.6 percent (Q1 2024: 8.3 percent). In addition to the decline in sales and low cost flexibility, increased expenses incurred for the introduction of an IT system at a large plant were a major reason for the decline in profitability. Net operating cash flow was EUR 3.1 million in the period from January to March 2025, a significant improvement compared to the figure from the same quarter of the previous year (Q1 2024: EUR -2.3 million).

CEO Mark Wilhelms: “We faced an extraordinarily challenging quarter. Uncertainty in the global economy led to weak demand and one-time items had a negative impact on our result. Our business performance did improve, however, over the course of the quarter and I expect the market environment to gradually pick up in the second half of the year. We therefore maintain our forecast for full-year 2025. NORMA Group will consistently move ahead on its path toward becoming a focused industrial supplier.”

Development in the business regions reflects uncertainties

In the EMEA region (Europe, Middle East and Africa), sales were down 12.2 percent at EUR 119.9 million in the first quarter of 2025 (Q1 2024: EUR 136.5 million). Mobility & New Energy recorded a significant decline in sales in the period from January to March 2025 as a result of persistently weak demand from the automotive industry. As of financial year 2025, NORMA Group is now allocating customers in the construction and agricultural machinery and stationary power supply industries to the Industry Applications business unit in order to better serve customer requirements (previously: Mobility & New Energy). Due to this change, Industry Applications recorded slight nominal growth, while organic sales in this business unit declined as a result of the general economic downturn. The Water Management business unit grew as a result of the acquisition of the Italian company Teco, which contributed a total of 0.5 percent to sales development in EMEA. Adjusted EBIT in the region was negative in the first quarter of 2025, amounting to EUR -1.2 million (Q1 2024: EUR 10.6 million). The adjusted EBIT margin was -1.0 percent (Q1 2024: 7.4 percent). Earnings and margin were impacted by a one-time item: At the beginning of the year, the company-wide standardized ERP system was introduced at the Maintal plant; this was accompanied by temporarily increased costs and delayed deliveries.

In the Americas region, sales in the first quarter of 2025 had a 3.5 percent year-on-year decline to EUR 130.6 million (Q1 2024: EUR 135.4 million). Currency effects had a positive impact of 2.5 percent. Adjusted for currency effects and the reallocation of customers, sales in all three business units in the period from January to March 2025 were below the level of the previous year. In the Mobility & New Energy business unit, coordination along the supply chain regarding new tariffs on imports into the USA delayed the processing of business. In the Industry Applications business unit, sales increased significantly in nominal terms due to the allocation of customer business related to joining technology for construction and agricultural machinery. The end customer-driven business in the Water Management segment suffered in the first quarter from the cold wave in large parts of the USA, which delayed the usual seasonal ramp-up in demand. Adjusted EBIT in the Americas region amounted to EUR 12.8 million in the first quarter of 2025 and was thus below the prior-year figure (Q1 2024: EUR 15.2 million). The adjusted EBIT margin was 9.6 percent (Q1 2024: 11.1 percent).

In the Asia-Pacific region, sales amounted to EUR 33.7 million in the first quarter, a decrease of 8.0 percent compared to the same quarter of the previous year (Q1 2024: EUR 36.6 million). In the Mobility & New Energy business unit, demand was lower for joining technology from customers from the automotive supply industry in particular. In Industry Applications, demand from the technical trade declined significantly as a result of continuing weakness in China’s construction sector. In the Water Management business unit, however, sales increased in the first quarter compared to the previous year. Adjusted EBIT in the Asia-Pacific region amounted to EUR 2.0 million in the first quarter of 2025 (Q1 2024: EUR 2.7 million). The adjusted EBIT margin was 5.5 percent (Q1 2024: 6.9 percent).

Transformation into a focused industrial supplier to be driven forward in 2025

NORMA Group will consequently continue to position itself as a focused industrial supplier in the 2025 financial year. To this end, the company is developing a detailed package of measures that will be implemented in addition to the ongoing “Step Up” program. The measures are intended to advance growth plans in the Industry Applications business unit, reduce administrative costs and optimize site capacities. The divestment process for the Water Management business unit, initiated at the end of 2024, will be continued. The aim of the transformation is to focus NORMA Group on its core business with high-quality joining technology and to position the company for sustainable profitable growth. The transformation is to be completed by the end of 2028. Detailed information will be announced no later than August 12, 2025, with the publication of the Q2 financial results.

Annual General Meeting with on-site attendance

NORMA Group’s Annual General Meeting will take place on May 13, 2025. As in the previous year, it will be an in-person event in Frankfurt/Main. The agenda includes the election of Kerstin Müller-Kirchhofs and Dr. Erek Speckert as members of the Supervisory Board.

NORMA Group in figures

Other dates and additional information

NORMA Group will publish figures for the second quarter on August 12, 2025. Additional information on the business results can be found here. For press photos, please visit our Press Area.