NORMA SE Stock price
📊 Peer Group
📈 What is it?
The peer group consists of the companies with the most similar business model. They serve as a benchmark for putting a stock into context.
🧮 How is it selected?
Based on similarity of business model, meaning companies from the same industry with comparable products and a similar customer base. That's the only way to compare apples to apples.
🏛️ Why does it matter?
Whether a stock is cheap or expensive is best judged by comparison. A P/E of 18 or an EV/FCF of 20 can look cheap or expensive depending on the yardstick. The peer group gives you the most accurate one: companies with a similar business model that operate under the same conditions.
🎯 What does it mean for investors?
When a metric sits below the peer average, the stock is valued more cheaply relative to its competitors, and above the average more expensively. A discount to the peer group can be an opportunity, but it can also have a reason (for example lower growth). The comparison is a starting point, not a verdict.
Is NORMA SE a Top Scorer Stock based on the Dividend, High-Growth-Investing or Leverman Strategy?
As a Free StocksGuide user, you can view scores for all 9,120 stocks worldwide.
StocksGuide Premium
StocksGuide Unlimited
Key metrics
📘 Market Capitalization
📈 What is it?
Market capitalization shows how much a company is currently worth on the stock market.
🧮 How is it calculated?
🏛️ Why is it important?
It helps classify companies by size (Large, Mid, Small Cap) and indicates their market presence and relative stability.
🧮 Calculation
🎯 What does this mean for investors?
- Large-cap companies tend to be more stable, often pay dividends, but may grow more slowly.
- Smaller firms may offer higher growth potential but come with more volatility.
- Market capitalization is a useful indicator of company size — but not a measure of whether a stock is undervalued or overvalued.
📘 Enterprise Value (EV)
📈 What is it?
Enterprise Value represents the total cost to acquire a company — including its debt and excluding its cash reserves.
🧮 How is it calculated?
(= Market Cap + Net Debt)
🏛️ Why is it important?
EV gives a more complete picture of a company's value than market cap alone and is used in key valuation ratios like EV/FCF or EV/Sales.
🧮 Calculation
🎯 What does this mean for investors?
- Enterprise Value shows the true cost of buying a company, including all financial obligations.
- It is more accurate than just looking at market cap, especially when comparing companies with different levels of debt or cash.
- Professional investors prefer EV-based multiples because they better reflect the company’s full financial footprint.
📘 Net Debt
📈 What is it?
Net Debt shows how much debt remains after subtracting a company’s available cash reserves.
🧮 How is it calculated?
🏛️ Why is it important?
It indicates how dependent a company is on borrowed money and how easily it can service its debt in the short term.
🧮 Calculation
🎯 What does this mean for investors?
- Low or negative net debt signals financial strength and flexibility.
- Companies with strong cash positions are better positioned in crises.
- High net debt increases financial risk — especially in environments with rising interest rates or economic downturns.
📘 Cash
📈 What is it?
Cash represents all liquid assets a company can access immediately — including cash, bank deposits, and short-term investments.
🧮 How is it calculated?
🏛️ Why is it important?
It reflects a company’s financial flexibility and resilience — enabling investments, buybacks, or buffer in downturns.
🧮 Calculation
🎯 What does this mean for investors?
- A strong cash position means greater room for maneuver and crisis resistance.
- Cash-rich companies can invest, pay down debt, or repurchase shares.
- But excess idle cash might indicate a lack of growth opportunities.
📘 Shares Outstanding
📈 What is it?
Shares outstanding represent the total number of a company’s shares currently held by investors — excluding treasury stock.
🧮 How is it calculated?
🏛️ Why is it important?
It’s the basis for key metrics like Earnings Per Share (EPS), Market Capitalization, or the Price/Earnings ratio (P/E).
🧮 Calculation
🎯 What does this mean for investors?
- Fewer shares in circulation typically increase earnings per share — making each share more valuable.
- Share buybacks reduce the number of shares and boost per-share metrics.
- Issuing new shares does the opposite — diluting shareholder value and lowering per-share figures.
📘 Price-to-Earnings Ratio (P/E)
📈 What is it?
The P/E ratio shows how many times a company's earnings per share are reflected in its current share price — in other words, how "expensive" the stock appears relative to its profits.
🧮 How is it calculated?
🏛️ Why is it important?
The P/E ratio is one of the most widely used valuation metrics. It helps investors assess whether a stock appears cheap or expensive compared to its earnings power.
🧮 Calculation
📊 P/E (TTM) = Based on earnings from the last 12 months (Trailing Twelve Months):🎯 What does this mean for investors?
- A low P/E may indicate undervaluation — or signal underlying issues.
- A high P/E may reflect strong growth expectations — or an overvalued stock.
📘 Price-to-Sales Ratio (P/S)
📈 What is it?
The P/S ratio shows how much investors are paying for $1 of the company’s revenue – regardless of profitability.
🧮 How is it calculated?
🏛️ Why is it important?
P/S is especially useful for evaluating growth companies or businesses not yet profitable. It reflects how the market values the company’s sales.
🧮 Calculation
Market Cap = €381.65m | Revenue (TTM) = €807.87m
Market Cap = €381.65m | Estimated Revenue = €844.37m
🎯 What does this mean for investors?
- A low P/S may indicate undervaluation — or low profitability.
- A high P/S can reflect strong growth expectations — or excessive optimism.
- Especially helpful when evaluating companies where profits are low, volatile, or negative.
📘 Enterprise Value to Sales (EV/Sales)
📈 What is it?
EV/Sales shows how much investors are paying for $1 of revenue — considering not just equity, but also debt and cash. It’s the capital structure–adjusted version of the P/S ratio.
🧮 How is it calculated?
🏛️ Why is it important?
It’s ideal for comparing companies with different levels of debt. It reflects a company's true cost relative to its revenue.
🧮 Calculation
Enterprise Value = €7.15m | Revenue (TTM) = €807.87m
Enterprise Value = €7.15m | Forward Revenue = €844.37m
🎯 What does this mean for investors?
- EV/Sales allows for capital structure–neutral company comparisons.
- A lower ratio may indicate undervaluation; a higher one may signal strong growth expectations or overvaluation.
- Especially helpful when evaluating high-growth companies with low or negative earnings.
📘 Enterprise Value to Free Cash Flow (EV/FCF) | ex SBC
📈 What is it?
EV/FCF compares a company’s enterprise value with its free cash flow. The metric therefore shows the multiple of current free cash flow at which a company is valued. EV/FCF ex SBC additionally accounts for stock-based compensation (SBC). While SBC does not represent a direct cash outflow, issuing shares as compensation can dilute existing shareholders. Therefore, SBC is deducted from free cash flow in this adjusted version.
🧮 How is it calculated?
EV/FCF ex SBC = Enterprise Value ÷ (Free Cash Flow (TTM) − SBC)
🏛️ Why is it important?
EV/FCF provides a valuation based on free cash flow and therefore complements earnings-based valuation metrics such as the P/E ratio. The ex SBC version additionally accounts for the economic impact of stock-based compensation and provides a more conservative view from a shareholder perspective.
🧮 Calculation
🎯 What does this mean for investors?
- A low EV/FCF means that enterprise value is low relative to current free cash flow. The reasons should always be considered in the context of the company and its industry.
- A high EV/FCF means that enterprise value is high relative to current free cash flow. This can, for example, reflect high growth expectations or temporarily weak cash generation.
- When SBC is positive and adjusted free cash flow remains positive, EV/FCF ex SBC is generally higher than the standard EV/FCF.
- The metric is particularly useful for companies with relatively stable and predictable cash flows.
- If free cash flow is negative or very low, EV/FCF has limited usefulness and should not be interpreted like a standard valuation multiple.
📘 Price-to-Book Ratio (P/B)
📈 What is it?
The P/B ratio compares a company’s market value to its book value — showing how much investors are paying for each dollar of net assets.
🧮 How is it calculated?
🏛️ Why is it important?
P/B is commonly used for asset-heavy industries like banks or industrials. It helps assess whether a stock is trading above or below its net asset value.
🧮 Calculation
🎯 What does this mean for investors?
- A P/B below 1 may signal undervaluation — or weak profitability.
- A P/B above 1 implies the market expects future value creation (e.g., brand, IP, growth).
- Best used for companies with tangible assets and strong balance sheets.
📘 Dividend per Share (DPS)
📈 What is it?
Dividend per Share shows how much cash a company pays out to shareholders for each share they own – usually on an annual or quarterly basis.
🧮 How is it calculated?
🏛️ Why is it important?
DPS is the absolute value of the payout per share – crucial for income-focused investors and dividend strategies.
🧮 Calculation
🎯 What does this mean for investors?
- A stable or growing DPS often signals a strong, shareholder-friendly business.
- DPS alone doesn’t tell you how attractive the payout is – the stock price also matters (→ see Dividend Yield).
- Long-term dividend growth is often a hallmark of high-quality companies – like the dividend aristocrats.
📘 Dividend Yield
📈 What is it?
Dividend yield shows how large a company’s dividend is in relation to its current share price.
🧮 How is it calculated?
🏛️ Why is it important?
It allows investors to compare dividend payouts across stocks, regardless of price or payout size.
🧮 Calculation
🎯 What does this mean for investors?
- A stable yield can reflect reliable distributions.
- Comparing 1Y and 5Y yield shows whether dividend growth keeps pace with stock price appreciation.
- A low yield isn’t always negative – it can signal strong past performance or growth focus.
📘 Dividend Growth
📈 What is it?
Dividend growth shows how much a company has increased its dividend per share over time.
🧮 How is it calculated?
5Y: Compound Annual Growth Rate (CAGR)
🏛️ Why is it important?
Consistently rising dividends are often a sign of financial strength and shareholder orientation – especially relevant for long-term investors.
🧮 Calculation
🎯 What does this mean for investors?
- Stable dividend growth is a sign of sustainable earning power.
- High dividend growth can significantly boost your total return:
- If a company pays $1 in dividends and increases it by 15% annually over 5 years, you’ll receive $2 per share in year 5 – twice as much as at the start!
📘 Payout Ratio
📈 What is it?
The payout ratio shows what percentage of a company’s earnings (per share) is distributed to shareholders as dividends.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess whether the dividend is sustainable – especially in relation to the company’s profitability.
🧮 Calculation
🎯 What does this mean for investors?
- A low payout ratio means the company retains more earnings for reinvestment – typical for growth companies.
- A moderate payout (e.g. 25–50%) indicates a healthy balance between returns and reinvestment.
- High payout ratios may seem attractive but can carry risk if earnings decline.
📘 Consecutive Dividend Increases
📈 What is it?
This metric shows how many consecutive years a company has raised its dividend per share – without any cuts or pauses.
🧮 How is it calculated?
(Special dividends are not considered.)
🏛️ Why is it important?
A long track record of increases reflects financial strength, consistency, and shareholder commitment.
🎯 What does this mean for investors?
- A long dividend increase streak builds confidence – especially in volatile markets.
- Such companies are seen as reliable and income-friendly investments.
- The longer the streak, the stronger the company’s dividend discipline.
📘 Revenue
📈 What is it?
Revenue shows how much a company earns in total from selling its products and services – the gross income before any costs are deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Revenue is one of the key figures to assess a company’s size, market position, and growth potential.
🧮 Calculation
🎯 What does this mean for investors?
- Growing revenue indicates rising demand and can be an early signal of future earnings growth.
- Comparing actual and expected revenue reveals trends in the market environment and analyst sentiment.
- Note: Strong revenue alone isn’t enough – margins and profitability matter just as much.
📘 EBITDA
📈 What is it?
EBITDA stands for “Earnings Before Interest, Taxes, Depreciation, and Amortization.” It reflects a company’s operating profit before the effects of financing, taxes, and accounting depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
EBITDA is widely used to evaluate a company’s operating performance – especially across capital-intensive sectors or international comparisons.
🧮 Calculation
🎯 What does this mean for investors?
- A high or growing EBITDA indicates strong operational profitability – independent of taxes, interest, or accounting methods.
- It’s especially useful for comparing companies across sectors or geographies.
- Important: EBITDA is not a net income figure – it excludes key costs like depreciation and interest.
📘 EBIT
📈 What is it?
EBIT stands for “Earnings Before Interest and Taxes.” It reflects a company’s operating profit after depreciation, but before interest and tax expenses.
🧮 How is it calculated?
🏛️ Why is it important?
EBIT is a core profitability metric that shows how well the company performs in its main business operations – independent of capital structure and tax environment.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT indicates strong profitability from the company’s core business – before financial and tax effects.
- It allows better comparison between companies with different debt levels or tax structures.
- Compared to EBITDA, EBIT already accounts for depreciation and reflects capital intensity more clearly.
📘 Net Income
📈 What is it?
Net income is the company’s total profit – the amount left after all expenses, taxes, interest, and depreciation have been deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Net income is the most comprehensive measure of a company’s profitability – showing how much actual profit remains after all business and financing costs.
🧮 Calculation
🎯 What does this mean for investors?
- Growing net income indicates that the company is managing all of its costs efficiently.
- It directly influences valuation metrics like P/E ratio and the company’s dividend capacity.
- Over time, net income trends reveal how resilient and profitable the business model really is.
📘 Free Cash Flow (FCF) | ex SBC
📈 What is it?
Free cash flow shows how much cash remains after a company has covered its operating and capital expenditures. FCF ex SBC additionally deducts stock-based compensation (SBC) to adjust the cash flow for the effect of non-cash SBC.
🧮 How is it calculated?
Free Cash Flow ex SBC = Operating Cash Flow − SBC − Capital Expenditures (CAPEX)
🏛️ Why is it important?
FCF reflects a company’s actual financial strength – independent of reported accounting earnings. It shows how much flexibility a company has for dividends, share buybacks, or debt reduction. FCF ex SBC also deducts stock-based compensation and shows how much cash generation remains after SBC.
🧮 Calculation
🎯 What does this mean for investors?
- High free cash flow indicates that a company has strong financial strength – independent of reported earnings.
- It is often a solid basis for sustainable dividends and share buybacks.
- Declining FCF can be a warning sign, even if reported earnings remain stable.
📘 Revenue Growth
📈 What is it?
Revenue growth shows how much a company’s sales have changed compared to the previous year – both on a trailing basis (TTM) and based on forward projections.
🧮 How is it calculated?
Forward = (Expected revenue ÷ Revenue in prior year − 1) × 100
Forward growth is based on analyst estimates for the current fiscal year.
🏛️ Why is it important?
Rising revenue signals growing demand, business expansion, and market share gains – especially important for growth-oriented companies.
🧮 Calculation
🎯 What does this mean for investors?
- Growth is the engine of long-term value creation – especially in tech and growth sectors.
- What matters is not just current growth, but its sustainability.
- Forward projections reflect whether analysts expect continued momentum – or a slowdown.
📘 EBITDA Growth
📈 What is it?
EBITDA growth shows how much a company’s operating profit (before interest, taxes, depreciation, and amortization) has increased or decreased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBITDA ÷ EBITDA from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
Growing EBITDA indicates improving operational profitability – regardless of financing or accounting effects.
🧮 Calculation
🎯 What does this mean for investors?
- Strong EBITDA growth signals operational efficiency and scalability – especially during growth phases.
- EBITDA growth can be an early indicator of margin and earnings expansion – but should be assessed alongside revenue and EBIT.
📘 EBIT Growth
📈 What is it?
EBIT growth shows how much a company’s operating profit (after depreciation, but before interest and taxes) has increased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBIT ÷ EBIT from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
EBIT growth is a direct indicator of a company’s business performance – taking into account capital intensity through depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- Rising EBIT signals improving operating profitability – even after accounting for depreciation.
- It’s especially important for evaluating companies with significant capital expenditures.
- Combined with revenue and EBITDA growth, EBIT growth provides a well-rounded view of operational progress.
📘 Net Income Growth
📈 What is it?
Net income growth shows how much a company’s bottom-line profit has increased or decreased compared to the previous year – both on a trailing basis (TTM) and based on analyst projections.
🧮 How is it calculated?
Forward = (Expected net income ÷ Net income from prior year − 1) × 100
The forward estimate reflects analysts’ expectations for the current fiscal year.
🏛️ Why is it important?
Net income is the ultimate measure of profitability. Growing net income signals stronger efficiency, cost control, and sustainable earnings power.
🧮 Calculation
🎯 What does this mean for investors?
- Stronger net income boosts valuation, dividend potential, and investor confidence.
- If profits stall while revenue grows, it may signal margin pressure.
📘 Free Cash Flow Growth
📈 What is it?
Free cash flow (FCF) growth shows how a company’s available cash – after covering operating expenses and capital expenditures – has changed compared to the previous year.
🧮 How is it calculated?
🏛️ Why is it important?
Free cash flow reflects real financial strength. Growing FCF indicates more flexibility for dividends, share buybacks, and reinvestment.
🧮 Calculation
🎯 What does this mean for investors?
- Declining FCF may point to rising investments, increasing costs, or weaker operating performance.
- Especially for dividend investors, FCF growth is critical – since dividends are paid from actual available cash.
- A negative trend isn't always bad, but it deserves closer attention.
📘 Gross Margin
📈 What is it?
Gross margin shows how much of a company’s revenue remains after deducting the direct costs of goods sold (like materials and production). It represents the company’s “raw profit” before fixed costs, taxes, and interest.
🧮 How is it calculated?
Or simply: Gross Margin = Gross Profit ÷ Revenue × 100
🏛️ Why is it important?
Gross margin indicates how efficiently a company can produce or procure what it sells. It is a key measure of product-level profitability and pricing power.
🧮 Calculation
🎯 What does this mean for investors?
- A high gross margin suggests strong pricing power and efficient production.
- Falling margins may signal rising input costs or competitive pressure.
- Compared to peers, gross margin offers insights into the quality of a business model.
📘 EBITDA Margin
📈 What is it?
The EBITDA margin shows how much of a company’s revenue remains as operating profit before interest, taxes, depreciation, and amortization.It reflects operating efficiency without being distorted by financing or accounting factors.
🧮 How is it calculated?
🏛️ Why is it important?
The EBITDA margin reveals how much operating income a company generates per dollar of revenue – independent of capital structure and tax effects.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBITDA margin reflects strong core profitability – before accounting distortions.
- It allows for effective comparisons across companies and sectors.
- A stable or growing margin signals efficient cost control and business scalability.
📘 EBIT Margin
📈 What is it?
The EBIT margin shows what percentage of revenue remains as operating profit after depreciation but before interest and taxes.
🧮 How is it calculated?
🏛️ Why is it important?
The EBIT margin reflects a company’s core profitability while accounting for capital intensity (e.g. machinery, infrastructure). It’s especially useful for comparing businesses with different levels of depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT margin shows that the company remains efficient even after factoring in depreciation.
- It’s especially relevant for capital-intensive industries.
- Stable or rising EBIT margins over time are a strong indicator of pricing power and business quality.
📘 Net Margin
📈 What is it?
Net margin shows how much of a company’s revenue remains as bottom-line profit after deducting all costs, interest, taxes, and depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
Net margin reflects a company’s overall efficiency – across operations, financing, and taxation. It shows how much actual profit is generated from each dollar of revenue.
🧮 Calculation
🎯 What does this mean for investors?
- A high net margin means the company is not only strong operationally but also manages financing and taxes efficiently.
- Peer comparisons reveal business quality and competitiveness.
- Declining margins despite revenue growth can be a red flag for rising costs or inefficiencies.
📘 Free Cash Flow Margin | ex SBC
📈 What is it?
The Free Cash Flow Margin shows how much free cash flow a company generates relative to its revenue. In simplified terms, free cash flow is calculated as operating cash flow minus capital expenditures. The Free Cash Flow Margin ex SBC additionally accounts for stock-based compensation (SBC). While SBC does not represent a direct cash outflow, issuing shares as compensation can dilute existing shareholders. Therefore, SBC is deducted from free cash flow in this adjusted metric.
🧮 How is it calculated?
Free Cash Flow Margin ex SBC = (Free Cash Flow − SBC) ÷ Revenue × 100
🏛️ Why is it important?
The Free Cash Flow Margin shows how efficiently a company converts its revenue into free cash flow. Strong free cash flow can provide financial flexibility for dividends, share buybacks, debt repayment, or further investments. The ex SBC version additionally accounts for the economic impact of stock-based compensation and therefore provides a more conservative view of cash generation from a shareholder perspective.
🧮 Calculation
🎯 What does this mean for investors?
- A high Free Cash Flow Margin shows that a company converts a high proportion of its revenue into free cash flow.
- This can provide greater financial flexibility for dividends, share buybacks, debt repayment, or investments.
- The Free Cash Flow Margin ex SBC additionally accounts for potential shareholder dilution from stock-based compensation.
- The long-term trend is particularly important. Declining margins can, for example, result from higher investments, changes in working capital, or weaker operating performance.
📘 Equity Ratio
📈 What is it?
The equity ratio indicates what portion of a company’s total assets is financed by shareholders’ equity – in other words, how much it relies on its own capital.
🧮 How is it calculated?
🏛️ Why is it important?
A high equity ratio reflects financial strength and stability, especially during downturns. It’s a key indicator of a company’s solvency and long-term risk profile.
🧮 Calculation
🎯 What does this mean for investors?
- Companies with high equity ratios are generally more resilient and less dependent on external debt.
- Low equity ratios can signal higher risk or aggressive financial strategies.
- Important: Always assess the equity ratio in combination with the return on equity (ROE). This shows not just how stable the company is – but also how efficiently it uses shareholder capital.
📘 Return on Equity (ROE)
📈 What is it?
Return on equity (ROE) shows how efficiently a company uses its shareholders’ equity to generate profit. In other words: how much net income is earned per dollar of equity.
🧮 How is it calculated?
🏛️ Why is it important?
ROE is a core profitability metric. It helps investors understand whether a company delivers attractive returns on the capital provided by its shareholders.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROE indicates that the company is using its capital efficiently and profitably.
- It’s especially meaningful for capital-intensive businesses or firms with high equity bases.
- Important: A very high ROE can also result from high debt levels – always interpret it alongside the equity ratio to assess financial health.
📘 Return on Capital Employed (ROCE)
📈 What is it?
ROCE measures how efficiently a company generates profits from its total capital – including both equity and interest-bearing debt.
🧮 How is it calculated?
It evaluates the return on all capital employed, regardless of how it’s financed.
🏛️ Why is it important?
ROCE is ideal for comparing companies with different financing structures. It shows how well management uses capital to create value for both shareholders and creditors.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROCE means the company uses its capital efficiently – regardless of whether it's funded by debt or equity.
- The higher the ROCE compared to peers, the more value the company creates with its invested capital.
- Especially relevant for capital-intensive sectors like industrials, energy, or infrastructure.
📘 Return on Invested Capital (ROIC)
📈 What is it?
ROIC measures how efficiently a company generates returns from the capital invested in its core operations – regardless of whether the capital comes from equity or debt.
🧮 How is it calculated?
- NOPAT = Net Operating Profit After Taxes
- Invested Capital = Operating assets minus non-interest-bearing liabilities
🏛️ Why is it important?
ROIC is one of the most accurate indicators of capital efficiency. Unlike return on equity, it is not distorted by leverage and shows how much value is created for all capital providers.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROIC shows how effectively a company uses the capital that is truly invested in its core operations.
- Unlike ROCE, ROIC focuses only on the capital that is actively used to run the business – and that requires a return (i.e. interest-bearing).
- Especially useful when comparing companies with large amounts of excess cash or non-interest-bearing liabilities – giving a more realistic picture of capital efficiency.
📘 Leverage Ratio (Debt-to-Equity)
📈 What is it?
The leverage ratio indicates how much a company relies on interest-bearing debt (such as loans and bonds) relative to its shareholders’ equity.
🧮 How is it calculated?
🏛️ Why is it important?
This ratio helps assess a company’s financial structure and risk profile. High leverage can enhance returns – but also increases exposure to interest rate changes and financial stress.
🧮 Calculation
🎯 What does this mean for investors?
- A low leverage ratio signals financial strength and independence.
- A higher ratio can improve returns in good times but increases risk during downturns or rising interest rate periods.
- 👉 Always interpret in the context of industry, capital intensity, and interest rate environment.
📘 SBC | in % Revenue
📈 What is it?
SBC (Stock-Based Compensation) refers to equity-based compensation granted by a company to its employees and executives. The percentage shows SBC relative to revenue.
🧮 How is it calculated?
SBC as % of Revenue = (SBC ÷ Revenue) × 100
🏛️ Why is it important?
Stock-based compensation is a real cost factor for shareholders. It can increase the number of shares outstanding and therefore dilute existing shareholders. The percentage of revenue shows how heavily a company relies on equity-based compensation and how significant this form of compensation is relative to the size of the business.
🧮 Calculation
🎯 What does this mean for investors?
- A lower figure is generally positive: Stock-based compensation is relatively small compared with the company's revenue.
- A high figure can indicate greater reliance on stock-based compensation and a higher potential risk of dilution. However, it is also important to consider whether the company offsets dilution through share buybacks.
- The trend over time should also be considered. A high but declining percentage presents a different picture from a persistently high or increasing percentage.
- A single-digit SBC-to-revenue ratio is not unusual among many growth-oriented and technology companies.
📘 SBC as % of FCF
📈 What is it?
SBC (Stock-Based Compensation) refers to equity-based compensation granted by a company to its employees and executives. The percentage shows SBC relative to free cash flow (FCF).
🧮 How is it calculated?
SBC as % of FCF = (SBC ÷ Free Cash Flow) × 100
🏛️ Why is it important?
Stock-based compensation is a real cost factor for shareholders. It can increase the number of shares outstanding and therefore dilute existing shareholders. The percentage of free cash flow shows how significant SBC is relative to the cash generated by the company. Since SBC is non-cash compensation, it is typically not deducted as a cash outflow when calculating FCF.
🎯 What does this mean for investors?
- A lower value is generally favorable. Stock-based compensation is relatively small compared with the company's cash generation.
- A high value means that SBC represents a significant portion of the company's reported free cash flow, even though SBC itself is non-cash.
- The higher the value, the more significant SBC can be as an economic cost to shareholders, particularly when it results in share dilution.
📘 SBC Growth 1Y
📈 What is it?
SBC Growth 1Y shows how much a company's stock-based compensation has changed compared to the previous year.
🧮 How is it calculated?
🏛️ Why is it important?
SBC Growth shows whether stock-based compensation is becoming more or less significant for shareholders. If SBC increases significantly, it can lead to greater shareholder dilution over time. At the same time, SBC is a non-cash expense that reduces earnings on the income statement but is added back in the cash flow statement.
🎯 What does this mean for investors?
- A high positive value is generally negative, as rising SBC can increase the burden on shareholders, particularly through potential dilution.
- What matters is whether the development of SBC is sustainable over the long term. Some level of SBC is common among many growth and technology companies.
📘 Share Count Growth 1Y
📈 What is it?
Share Count Growth 1Y shows how much the number of shares outstanding has increased or decreased over a one-year period.
🧮 How is it calculated?
🏛️ Why is it important?
The number of shares determines how many shares the company's earnings and assets are distributed across. If the share count decreases, existing shareholders' relative ownership increases. If it increases, existing shareholders are diluted. The metric therefore makes dilution and share buybacks directly visible.
🧮 Calculation
🎯 What does this mean for investors?
- A negative value is generally positive, as the number of shares outstanding is decreasing.
- A positive value indicates dilution of existing shareholders.
- A declining share count is not automatically positive: It also matters at what price the shares are repurchased and how the buybacks are financed.
📘 Shareholder Yield
📈 What is it?
Shareholder Yield measures how much capital a company returns to shareholders or uses to reduce debt relative to its market capitalization. It goes beyond dividend yield by also including share buybacks and debt reduction.
🧮 How is it calculated?
🏛️ Why is it important?
Dividend yield only tells part of the story. Companies can also return capital through share buybacks, while reducing debt can strengthen the balance sheet. Shareholder Yield combines all three components into one metric, giving investors a broader view of how a company uses its capital.
🧮 Calculation
🎯 What does this mean for investors?
- A higher Shareholder Yield generally indicates more capital being returned to shareholders or used to reduce debt.
- The mix matters: dividends, buybacks, and debt reduction can affect shareholders in different ways.
- Share buybacks are most beneficial when shares are repurchased at attractive valuations.
- Investors should also consider whether dividends, buybacks, and debt reduction are sustainable over time.
📘 Earnings per share (EPS)
📈 What is it?
Earnings per Share (EPS) shows how much profit is attributable to a single share – and is one of the most important metrics for evaluating a company's performance.
🧮 How is it calculated?
The diluted share count reflects potential new shares that could be issued through options, convertible bonds, or other rights.
🏛️ Why is it important?
EPS is the basis for many key valuation metrics like P/E ratio, PEG ratio, or payout ratio. It enables comparisons of profitability across companies, regardless of their size.
🧮 Calculation
🎯 What does this mean for investors?
- EPS captures per-share profitability and is especially useful for comparisons over time or with analyst estimates.
- Rising EPS may signal consistent growth or share buybacks.
- Important: Always use diluted EPS for more realistic valuations – especially in companies with stock-based compensation.
📘 Free cash flow per share (FCF per share)
📈 What is it?
Free Cash Flow per Share shows how much free cash flow a company generates per outstanding share – after investments, but before dividends or debt repayments.
🧮 How is it calculated?
Free cash flow is calculated as operating cash flow minus capital expenditures (CapEx).
🏛️ Why is it important?
FCF per Share reveals how much real cash is available per share – useful for dividends, buybacks, or reducing debt. Unlike net income, free cash flow is harder to manipulate and often seen as a more reliable metric.
🧮 Calculation
🎯 What does this mean for investors?
- High FCF per share signals strong financial flexibility.
- It shows how much capital the company can effectively reinvest or return to shareholders.
- Particularly relevant for dividend payers and capital-efficient businesses.
📘 Short interest
📈 What is it?
Short interest indicates how many shares of a company are currently sold short – that is, borrowed and sold by investors who expect the price to decline.
🧮 How is it calculated?
It reflects the percentage of a company’s shares that are being shorted relative to the total shares available.
🏛️ Why is it important?
Short interest serves as a sentiment indicator: A high value may signal skepticism or bearish expectations – but also increases the potential for a short squeeze if prices rise unexpectedly.
🧮 Calculation
🎯 What does this mean for investors?
- Low short interest usually indicates market confidence in the company.
- High short interest can be a warning sign – or an opportunity if sentiment shifts.
- Especially relevant in volatile markets or ahead of key earnings releases.
📘 Employees
📈 What is it?
The employee count shows how many people a company employs worldwide – offering insights into its size, structure, and business model.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess operational scale, labor intensity, and cost structure. Combined with revenue and profit, it enables key metrics like revenue per employee or productivity.
🧮 Calculation
🎯 What does this mean for investors?
- A high headcount can signal operational complexity – but also significant growth capacity.
- Revenue per employee is a key indicator of efficiency.
- Especially useful for comparing tech, industrial, or service-heavy companies.
📘 Revenue per employee
📈 What is it?
Revenue per employee indicates how much revenue a company generates on average per employee – a key measure of efficiency and productivity.
🧮 How is it calculated?
The employee count is typically taken from the most recent annual report.
🏛️ Why is it important?
This metric helps compare business models – especially between labor-intensive and technology-driven companies. A high value suggests automation, operational efficiency, or strong value creation per head.
🧮 Calculation
🎯 What does this mean for investors?
- A high revenue per employee indicates a scalable and margin-strong business model.
- A low figure may reflect labor-intensive operations or lower value-add.
- Especially helpful when comparing tech companies to industrial or service sectors.
NORMA SE Stock Analysis
Analyst Opinions
16 Analysts have issued a NORMA SE forecast:
Analyst Opinions
16 Analysts have issued a NORMA SE forecast:
NORMA SE Events
Past Events
|
AUG
11
Q2 2026 Earnings Call
about 2 months ago
|
|
MAY
5
Q1 2026 Earnings Call
5 months ago
|
|
MAR
31
2025 Earnings Call
6 months ago
|
|
NOV
4
Q3 2025 Earnings Call
11 months ago
|
StocksGuide Free
NORMA SE — Q2 2026 Earnings Call
1. Management Discussion
Good afternoon, ladies and gentlemen. Thank you for your patience. Welcome to the NORMA Group Q2 2026 Results Webcast and Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to Birgit Seeger, Chief Executive Officer of NORMA Group. Please go ahead.
Good morning, good afternoon, everybody. A very warm welcome, and thank you for you to join our Q2 results of 2026. With me, I have Okan Celiker, our Group CFO, who will give us some more insights in our financial performance.
As usual practice, let us start with some key developments on NewNORMA on the results and also what we are going to do forward, create and strengthen NewNORMA Group. So before we join, please let's have a look quickly at our disclaimer, which is the usual disclaimer, and I want to note especially that the numbers we are showing refer to NewNORMA, which excludes the water management business unless we have specifically noted that it is former NORMA. And with this, let me start with some highlights of Q2 2026.
What we see overall is that we have achieved a very good cost discipline, and this has improved our profitability significantly, and we are quite proud to have a positive net cash position here. The environment still is challenging also for Q2 and especially in mobility and new energy. However, industry applications offset the quite soft demand in M&E. What are the actions we have taken so far? It's the cost discipline to really work in this NewNORMA setup, and we see this in our results. The second key point, what I want to share is that we are absolutely happy that we could achieve major orders in both our business units in industrial applications and the mobility business, and I will come to this and share some concrete results with you a little bit later.
So what is the result? We achieved in Q2, 3.6% adjusted EBIT margin, which is a really significant uplift compared to last year. What contributed to this was very nice EUR 2.3 million of transformation. Again, I will give you an update a little bit later. And the second point is that the AGM has approved all our resolutions, and this means also up to additional EUR 208 million as a shareholder return, and we are working with full speed to make this happen. With this, I can also summarize, we confirm the outlook for the financial year 2026.
Moving on to NewNORMA to our strategic pillars, what we see here, and this is a reminder, I hope you still remember this. This year, we are focusing on the pillar #1, 2 and 3. Restructuring is really a simplified organization so that we can make fast decisions, and I can already say a significant sales in M&A and also IA, it was crucial that we have this new way of working that we make fast decisions, very business-driven decision and our customers see this and we see it in business wins in order intake. In addition, so we have been working and we are still working on our SG&A efficiency. We have made progress, and we are going to further work on this. So again, we introduced a much stronger performance orientation, really making decisions which are business focused.
The second pillar is the footprint of our organization. So we are advancing on this. So currently, we are working especially in our Americas footprint. Also in Australia, we are progressing with the initiatives. So we have, for sure, our further operational and also structural measures, which are underway, and we will communicate to the given time. The third pillar is our sales push. And here, we really have activated a very good order intake. Of course, until it translates into sales, it will take a bit of time. However, it's very important for our future that we win this business, that we achieve this because this will safeguard our future. So with this, we are improving also our plant utilization. So we will see it also in our EBIT results further on. And this means we have strengthened our customer focus significantly.
So we are really going to meet our customers. We are having in-depth discussions, and I want to share one specific event with you. We had customer experience days here in our headquarter, and we invited some of our customers who were very happy to join us. We presented really the innovations, and it was absolutely stunning to get direct feedback, and it was great to hear the interest our customers brought into this and asked for more and when can they use it, when is it in SOP or when will it be produced? It was a great insight for all of us, and it motivates us as a team fantastic that we are on the right way with NewNORMA. Another point, we had rolled out target costing. So we really focus what is the target we can allow ourselves on our costing in our plants, in our overheads. So we are competitive for our customers, and we have really a good margin contribution for NewNORMA. The fourth pillar, you may remember, this is what we come to in the next phase. But for now, we mainly focus on the 3 pillars as described.
So now let's move on a little bit more insight on our transformation progress. So as we communicated, we said we reduced up to 400 positions for cost saving and also for speed, for decision powers. So -- and this is nice on track. We are running on this and the voluntary leaver program in Germany is completed, and we delivered the results as expected. Again, we have introduced a performance orientation. So we give the business ownership really in the strategic business unit. So again, we are fast, we are focused in our 2 strategic business units. We have delivered measurable benefits. So you see in the first half of 2026, it's EUR 6.1 million, and we are striving for the EUR 15 million as planned for the full year.
If we now turn our attention to new business wins to order intake, I would like to start first with the industrial application, one of our business units. So we have very interesting markets, really growing markets, basically in the infrastructure markets such as data center, sustainable energy, and we could secure nice orders in Malaysia, Thailand, Australia, so basically APAC here. So some were follow-on projects. These were sometimes customers where we had first projects. So they were new customers for us. They've given us follow-on projects, which is a great sign that we are doing the right thing. They like to work with us. They like our products. And we have gain also new business because the market is really big, and we are growing in a good way here. So what are we delivering sort of electrical connections, cable management, but also battery energy storage system and also backup power infrastructure. So these are all industries. They are growing tremendously and the addressable market for us as NORMA Group is bigger than EUR 3 billion. So we have a lot of potential to get more business and to deliver this business.
Let's move on now to our second business unit, which is mobility and new energy. Also here, a fantastic achievement. Our team, we could gain the biggest project in the company's history, which is for one of our European customers. It's a lifetime volume of EUR 157 million spent over 10 years. Of course, we have a little bit delay until we start with the SOP is the usual practice in the mobility business. It's a nice mix. 80% was extensions and 20% really new business, which was awarded to us from this customer. So what are we delivering? It's about 100 variants for the thermal management system. And here, we could demonstrate that our sales push. You remember this was the third pillar in our strategic picture. It's delivering. And a big thank you to everybody in NORMA Group who really with a very fantastic energy contributed to this acquisition to the sale of this project, working already in the NewNORMA way. Fantastic. Thank you.
So let's turn now our attention what was the results in the second quarter. And here, you see the overview. The net sales was EUR 211.8 million on comparable FX, 0.1% better than last year, so slightly better or basically the same. So this is really where we are fighting and working on to stay on this level. The really, really good news is, of course, on the adjusted EBIT, you see EUR 7.6 million, which translates into a 3.6% EBIT margin. So this is 2.5 percentage points better than last year. And here, I would say, we can say we are on the right track. We start to deliver here. Of course, with the net sales, this is where we are focusing on to really stay there on this level also for the second half of this year. Net operating cash flow, EUR 6.6 million positive. Please remember, last year, we had the former NORMA. So therefore, it's, of course, now a different level as expected.
If we have a look in the first half of the year 2026, again, we see here that the adjusted EBIT is going absolutely in the right direction. Starting with the net sales, EUR 420.5 million. This is minus 0.6% year-on-year on comparable FX also slightly lighter. But again, focus for us on second half. However, we are working and we are delivering already the adjusted EBIT, EBIT margin of 3.3% in the first half. Net operating cash flow, minus EUR 13.1 million. Again, this is a former NORMA number, including the divestment of Water Management.
So with this, I would like to hand over to Okan, who gives us some more insights in the financials.
Exactly. Also a warm welcome from my side. Thanks for joining our conference call today. So let's move on and look a bit more detail into the numbers. Let me start with the top line development in the second quarter, where the underlying business remained broadly stable despite continued market headwinds. The group net sales amounted to EUR 211.8 million, which is a reduction of 0.6% on a year-on-year reported basis. On a comparable FX basis, as mentioned by Birgit, we are slightly above prior level with a positive volume and price impact of EUR 0.1 million, which leads us to EUR 213.2 million. This includes EUR 4.7 million of TSA-specific sales to ADS following the water management divestment.
Looking at our 2 strategic business units on the next page, we continue to see different market dynamics with a strong IA performance offsetting softer mobility demand. Industry Applications increased net sales by 7% on a year-over-year basis, leading to EUR 70.6 million. On a comparable FX basis, this is a growth of 8.4%, leading to the EUR 71.4 million, which you can see in the middle of the graph on the left side. This graph also includes the EUR 4.7 million TSA specific sales to ADS, which are reported within IA. So if we move on with the right side with our Mobility & New Energy development, we see that sales declined by 4% year-over-year leading to EUR 141.3 million, reflecting the continued weaker demand in the automotive industry. And on a comparable basis, the reduction or the decline was 3.7%, leading to EUR 141.8 million for the mobility business in Q2. Overall, IA continued to grow while M&E affected by softer automotive demand.
On our next page, we can get a bit more details on our regional performance, where we see that the demand trends are still mixed and yes, the profitability, however, across all 3 regions improved on a year-over-year basis. So Americas, starting with the sales on the left side, came in with the strongest top-line development with net sales increasing 8% on a reported basis and 10% on a comparable FX basis, leading to an adjusted EBIT of 5.8%, which is an improvement year-over-year of 3.4%. Important to mention here is also that the EUR 4.7 million out of the TSA sales are included in these sales. And this contributed -- these sales contributed EUR 0.9 million -- EUR 0.9 million to our adjusted EBIT. In EMEA, middle of our slide, we see that the net sales declined 3.9% year-over-year on a reported basis, whereas on a comparable FX basis, the decline was at 3.4%, again, reflecting the softer demand, especially in the automotive industry.
Despite the lower sales, however, the adjusted EBIT margin improved significantly from minus 1.5% to 2.2% year-over-year. In APAC, net sales declined by 6.1% year-over-year reported and on a comparable FX basis by 7.8%, primarily reflecting, again, the weaker automotive demand in the region. Still the adjusted EBIT margin improved from 7.9% to 8.3% also in our APAC region.
So, let's move on to the next slide, where we can see our adjusted EBIT bridge and development. So our adjusted EBIT increased, as mentioned earlier by Birgit from EUR 2.3 million to EUR 7.6 million in quarter 2 with an adjusted EBIT margin improving from 1.1% to 3.6%. The improvement in Q2 profitability was broad-based. Main contributions for the margin uplift were provided by the volume and price impact of EUR 1.3 million, material costs of EUR 1.7 million and personnel costs of EUR 1.5 million. Overall, the transformation program contributed by EUR 2.3 million in quarter 2 and demonstrated that the measures are now translating into measurable earnings.
So on the next slide, let me briefly reconcile our reported adjusted results for H1. So starting with the EBITDA. Our reported EBITDA was EUR 32.5 million and includes adjustments of -- with adjustments of EUR 4.2 million relating to the transformation, severance and project costs. This gets us to an adjusted EBITDA of EUR 36.7 million. On EBIT level, we adjusted another EUR 2.6 million PPA amortization, which leads to a total adjustment on EBIT level of EUR 6.7 million and gets us to the adjusted EUR 14 million EBIT in the H1 compared to our reported EBIT of EUR 7.2 million.
On net profit level, we -- the adjustments amounted to EUR 5.3 million, including a negative tax impact of EUR 1.4 million. This results in an adjusted net profit of EUR 5 million. For full year 2026, we continue to expect approximately EUR 24 million of transformation-related adjustments on EBITDA level, and this basically reflects the H2 accelerated transformation severance and project costs with certain measures partly pulled forward from 2027, as already mentioned during our Q1 call. Including the approximately EUR 5 million PPA amortization adjustments, we expect a total adjustments in the full year 2026 of EUR 29 million on EBIT level.
Moving on the next slide. We can have a look at our cash flow development. Here, it is the new normal cash flow development. We generated a positive net operating cash flow, as mentioned earlier, of EUR 6.6 million in the second quarter. And starting from our adjusted EBITDA in the second quarter of EUR 19.1 million, trade working capital had a negative impact of EUR 5.7 million in the quarter, and this includes supply chain financing programs, which amounted to EUR 33.7 million. And on top of that, investments from operating activities amounted to EUR 6.8 million. This resulted in a net operating cash flow of EUR 6.6 million in Q2. And as already mentioned, be a bit important to distinguish here between new and former NORMA. So first of all, NewNORMA generated a positive net operating cash flow in Q2, while the year-over-year comparison reflects the changes in the reporting parameter, which are a result of the divestment.
Now let's have a look at our NewNORMApro forma net cash overview. So we ended June with a strong net cash position, providing the basis for the planned capital allocation measures in H2. So as of June, we reported net cash of approximately EUR 304 million. In addition, we had approximately EUR 57 million of short-term deposits recognized as other financial assets. The deposits will mature during the second half and convert into cash. So this will get us to a pro forma net cash, including the short-term deposits of EUR 361 million as of June 30. Now considering the EUR 4 million dividend payment and the EUR 208 million for the second share buyback program to our shareholders as well as the expected approximately EUR 90 million of remaining tax payments related to the water divestment and the currently expected cash development of our business and other cash movements during the second half of the year, we expect to retain a positive net cash position of around EUR 70 million to EUR 90 million for the full year.
And with that, back to you, Birgit.
Thanks, Okan. It was great to receive some insights in our financial performance. To conclude, I think it's fair to say that as NewNORMA, we are gaining momentum. We have seen that our financial performance, our profitability is strongly improving. We have a strong balance sheet and a full rigor to implement our strategic initiatives. So with this, we are well prepared for the future of NewNORMA. And with this, we can really confirm our outlook for the financial year 2026, which means 0% to 2% in net sales, adjusted EBIT margin of 2% to 4% and net operating cash flow in the range of EUR 10 million to EUR 20 million.
And it's with great pleasure I can announce here and would like to invite everybody of you to join our strategy update, which will take place on October 19 this year. It will be in Frankfurt for all of you who would like to join us face-to-face. For everybody else, there will be a hybrid and online facility to join also online, and I'm really looking forward to welcome you at this event. Thanks for listening. And with this, I give back to Sharon to open our Q&A session.
[Operator Instructions] And our first question today comes from the line of Nikita Papaccio from Deutsche Bank.
2. Question Answer
The first one would be on your Q2 revenue bridge. Typically, you gave us a split between volume and price. This is not the case this time. Can you maybe give us an indication how they develop in Q2 and what you expect for H2?
That is a wide and good observation, Nikita. Again, actually, we haven't broken it down this time. And yes, we will work on it and develop it and then share it with you in the aftermath. I hope that's okay for you.
The second one is on your full year guidance. When I take the midpoint of your current guidance, you're looking for a weaker H2 versus H1 in terms of margin. While the bulk of the transformation benefits should occur in H2, do you expect a deterioration in market environment? Or what do I miss here?
We basically still hold to the figures and variables that we have shared earlier also in our full year release of financial figures as well as Q1. So as of now and with everything we see in the market in terms of net sales, we are expecting to come out rather at the midpoint of our net sales guidance. Probably even below. And if all other variables stay as they are, especially also the margin improvements out of our transformation program, which we again confirmed to be at a level of EUR 15 million, we would basically expect for the full year to be somewhere around our midpoint in terms of EBIT margin guidance.
And my last question is on your strategy update. Thank you for the invite. I'm happy to attend your event in October. Could you maybe give us a glimpse on what to expect from this event?
Yes, sure. It's my pleasure to do so. And looking forward to welcome you, Nikita, on our event. Great to hear. So we will, for sure, give like a midterm ambition. We will talk about this. We will detail this, and we will also bring some insights on our products, on our innovations, especially in the exciting markets, what we have in front of us on the infrastructure market, data center, but also white goods, aerospace. So we will really support you and get a very good understanding about the potential we have in front of us. We will also detail what NewNORMA means. I mean we have the 4 strategic pillars, but there will be much more, let's say, meat to the bones for each of these pillars with numbers and also with content.
And your next question comes from the line of Sebastian Ubert from MPCM.
Sebastian from MPCM. I was wondering with regards to your restructuring program, if you maybe can speed it up or accelerate even the program as we see the bad news coming from a lot of European OEMs cutting jobs, cutting eventually even factories. We see an ongoing drift from the Chinese OEMs pushing into Europe. So what is really your answer on the automotive business to get along with the reduced capacities of European OEMs? And how do you deal with new joiners to the industry, especially Chinese OEMs, not only in passenger cars, but also in electric heavy-duty trucks?
Yes. Thanks, Sebastian, for this extremely valid question. I mean we are working really on a speedy implementation on the restructuring program. Also on our October strategy update, we will give some more insights what we will do on this there. So therefore, it's very important for us that we bring speed, and we will also present on our strategy update the model where we are convinced this will carry us in the future, incorporating exactly what you said, the challenges which are happening in the automotive industry, also the Chinese competitors, and we have fully taken this into consideration, and we have also good answers in this. We have, of course, also operations in China who are doing quite well. And we have strengthened, by the way, this organization in China. We are a global player, and we will be a global player to be able to answer exactly on such challenges which the market brings now, and I'm convinced there will be more challenges coming for the future.
And our next question comes from the line of Yasmin Steilen from Berenberg.
I have 3, if I may. So the first one on Mobility & Energy. So regarding your recent very successful project win, more than 100 thermal management system variant sounds rather complex. And in the past, inefficient project management was an issue. Could you walk us through the changes of the internal setup? What's the difference of the production location in Serbia that will prevent the issues NORMA had experienced at the Maintal plant? And could you also shed some color on the structural agreements in terms? So are there any take pay clause agreements? Are there price escalation clauses included? That's the first question.
Thanks for this extremely valid question. So to start with this, I mean, yes, we will produce this in Serbia plant. I have also visited the plant, and I have also experience before in Serbian plant. And I can say that the NORMA plant in Serbia is a very mature one with very good expertise. And we are supporting this even with stronger expertise, also project management. I fully agree with you that project management in such a variant heavy business is extremely important also to manage the changes, to manage the time line. And we have basically put a project manager to manage this project who has the required competency and also with senior support and mentoring to be absolutely sure we deliver to our customer wishes and also commercially to our expectations.
In terms of clauses in the agreement, we had a very long and intensive negotiation and discussion internally and many, many rounds with our customer. So I can say we have the closest we can achieve, which protects us to a way how you can protect yourself. I was also myself very closely involved and supported the team. So we also worked on this in a NewNORMA way, which was, by the way, the trigger why we could convince our customer to award us this business.
Then on the CFO position, I'm aware the Board is currently conducting such process to build this on a permanent basis. But what are the main criteria or qualification you think are required for the position to maneuver NORMA through the transition?
Thanks for this question. And yes, our Supervisory Board is conducting a really professional and well-founded search process. So the criteria for search are, I would summarize this as a CFO who is very experienced and very good at managing transformations and restructuring, which is exactly the topics what we need for NewNORMA, which is, of course, very important for us to find an experienced person who can contribute exactly what we need now for NORMA and for our NewNORMA.
And then finally, just a housekeeping question. In H1, you've booked some EUR 2 million reversal of provision -- could you share what's behind this? And is there anything we should also expect for the second half?
I'm not sure if I -- you broke up for a second, but I assume you are referring to the referral of provisions that we on SE level. Yes, there's nothing you have to adjust for or change. We've basically adjusted for this reversal now in our Q1. It was related basically to a provision built in 2025. We released it in '26. And as we had the new information at hand related to the transformation program, but this release has been adjusted.
[Operator Instructions] And your next question today comes from the line of Klaus Ringel from ODDO BHF.
Yes. First of all, to start with, can you please remind me of the timing of the planned capital measures, i.e., the capital reduction and the buyback of the shares?
Yes, for sure. Thanks for the question. So just to recap, the AGM has approved our resolution fully on this. So we are full speed working on this is a major priority. And in terms of timing, I can say August is a hot month. So I would say stay tuned.
Secondly would be your view on the adjustments between the adjusted and the reported EBIT line. I mean you're guiding for around EUR 29 million for 2026. So the question for H2 is, will you rather book it in Q3 or Q4? And then maybe also already looking to next year, would you expect that these adjustments are already going down significantly? Or should we just expect kind of, yes, stepwise going down? That's the second one.
So yes, correct. So we are planning a EUR 29 million adjustment on EBIT level for the full year 2026. Currently, we are at EUR 6.7 million, as mentioned earlier. So as already touched by Birgit related to a previous question. So we are obviously working also on additional measures in order to accelerate our efforts to transform NewNORMA. And with that, we basically pulled forward some of the costs we anticipated for 2027 into 2026. So in our original publication with regards to our transformation program, we communicated EUR 7 million costs for 2026 and now -- and then EUR 15 million to EUR 20 million for '27. And basically, with this acceleration, we pulled forward some of the initiatives out of 2027, which will be most probably booked in '26, but we haven't yet, let's say, really decided on when exactly we will book the provision for it.
So that means we have to, first of all, work on the items and initiatives and finalize them. And once we have clear information, maybe already with our strategy update or then later in our Q3 publication, we will, of course, let you know.
And yes, last but not least, a question regarding your free cash flow power or, let's say, adjusted free cash flow power. What would be the levers for higher free cash flow here again? Is it just higher profit margins? Or is it just that we need to see the fall away of restructuring cash out, things like that? So I would be interested to hear your thoughts how we should think about it looking ahead?
First and foremost, let's say, our free cash flow power from my point of view, will be supported by our, let's say, ongoing efforts to improve our profitability. Of course, there will be also -- or there are already other financial parameters we are also reviewing and trying to steer and balance as far as possible to make sure that we develop our business going forward the best way we can. But the cash flow generation power will primarily be, let's say, a result of our improved profitability. And I think we showed as NORMA overall in the automotive business, but also in the industry business in the past that we are able to do that. And with the strong focus now on keeping a sustainable top line level in the mobility and new energy sector and our efforts to basically extend our activities in highly attractive markets in the industry applications area, we are confident that we will be able to, let's say, improve our EBIT results significantly going forward.
[Operator Instructions] There are currently no further questions. I will now hand the call back to Birgit Seeger, CEO of NORMA Group for closing remarks.
Thanks, Sharon. Thanks, everybody, to join today's call. Thanks for the great questions. And again, to remind you, 19th of October, we are very much looking forward to welcome you for our strategy update that we can also give you some more insights about NewNORMA, how we will make this potential happen in the interest and for our shareholders. So thank you, and have a great day.
Thank you very much.
NORMA SE — Q2 2026 Earnings Call
NORMA SE — Q1 2026 Earnings Call
1. Management Discussion
Good afternoon, ladies and gentlemen. Thank you for your patience. Welcome to the NORMA Group Q1 2026 results webcast and conference call. [Operator Instructions] Please be advised that today's conference is being recorded.
I would now like to hand the conference over to Birgit Seeger, Chief Executive Officer of NORMA Group. Please go ahead.
Thank you. A very warm welcome from my side to all of you listening to this call. This is actually the first full quarterly report as the new CEO of NORMA together with the new CFO, Okan Celiker today. So as usual, after the presentation, you will have the opportunities to ask your questions, and we are very happy to answer them.
So we will share some of the results we have in our Q1 and also share some of the changes we have introduced since the start of NewNORMA, which we see some effective already in the Q1 results. So here, you see our usual disclaimer. Please pay attention to this one. And as we have done in the full earnings call from 2025, we will differentiate between NewNORMA and Former NORMA. The focus is on NewNORMA. In some topics, we still talk about the Former NORMA, and this is highlighted in the presentation.
So now we have a look at the Q1 milestones and achievements. So first of all, I have to say I'm very happy that we see a very good improvement in our profitability, which is 3.1 percentage point year-over-year improved. So this is basically coming from a cost discipline in all cost areas, and a big thank you to all of our colleagues who made this happen with us. So we see also secondly, from the pricing efforts we have taken in positive effects which is also, of course, contributing to the profitability. We see in our sales still some slight issues, which we are working on.
Debt repayment, very positive based on the water divestment. So we are net debt free currently, so a very good basis for NewNORMA. The transformation program is progressing exactly as we have planned and as we have communicated and announced to you. So we are simplifying, streamlining our organization, so -- and the cost measures are well underway according to plan and committed. We will share with you in a moment some new business wins, just some examples. We see also in M&E, strong contract. And I will share one example from our industrial applications business area, what we could win, which is just an example from several wins in this area.
So we confirm our guidance, our outlook for the financial year 2026, also based on the results we have seen in quarter 1. Of course, we are still careful with the year going ahead. However, we are confident to confirm and to see the financial year guidance.
So now let's move our attention to our business win. This is an example from Mobility & New Energy. So we see a very nice sale here, what we could achieve actually with a very nice profitability for one of our customers, a major contract. SOP is in 2029. Now you may say, well, this is only in 3 years. However, this is important for us. This is the nature of our business. This is quite in 2029 and some of the sales, we see an SOP in '27 and '28 already. However, the duration is for 7 years. So it gives us a very nice and stable business.
So the fluid lines we have sold to our customers are improving the emission regulation and are used in internal combustion engine and in hybrids. So this is very nice and very important. I think we are all aware, hybrids are gaining traction and will stay in the market, so the forecast for quite many years.
So with this, we move on to our industrial applications area, where we have several industries in focus. Actually, we have 7 focus industries where we are working on. So this is one achievement of our sales team, which we have really positioned in a different way now. So we have sold to a company building machines to basically clean bottles. So our FGR, what we call it, so a very nice sale. We could actually win this because our service is really better than the competitor. Our price was acceptable, and we have a fantastic relationship and could give technical advice, which convinced our customer that we are the right partner for this kind of business.
So this is actually a product, the FGR, what you see here on the slide, what we have on hand. So this proves again that we have the right products. In some cases, we will work on adaptions. This is a nice case where we have the product on hand, and we can use this in this industry. And there are several other industries which are out to sell this kind of products.
So let's move on now to the NewNORMA to the industrial powerhouse. What I shared last time with you, this is basically a reminder and giving some more insights what we have achieved so far. So the pillar #1 to the left is the restructuring. This is a transformation project. We have simplified the organization in the first step. We are not done with this, but we have started and see first achievements. Basically, we want to have SG&A, which are competitive, which fit to NewNORMA, and this is what we are working against. So the new organization will be really oriented against the performance. We have done this in the sales organization already, and the whole organization will be also measured against business KPIs and the one NORMA business will be the focus.
So the second pillar is the footprint. We reported already that we could close our footprint measures in China already very successfully. In North America, in Mexico, we are on the way currently as we speak, and we are evaluating currently what is the right footprint setup for plants and for sites for the NORMA Group. So we will, in the second half of this year, also present our targeted operational and also structural measures to come up with a new NORMA footprint.
The third pillar is the sales push, as you have seen already, so we confirm already this measure that we are having a bigger order intake. We could improve here, just shared these two examples. So we will increase also our plant utilization, which is very important to use the capacity we have to use the assets we have already and to have a strong customer focus. And here, I want to give you some insights in what we do.
Actually, in February, we have brought together our sales team here and had a start of the year with clearly identifying what is the new way of selling, what is our pricing strategy, what is our calculation methodology. We need to be fast. We need to be competitive. Of course, we need to be really profitable, and we have seen already the first results of this. Actually, I was 2 weeks ago at a customer, and they really confirm that they see different behavior and they have given us now additional business and really show and give us more RFQs, so we could gain more business.
The fourth pillar to the right, which is called growth. This is currently running on a low key. It's more for the midterm, which could include an M&A transaction. So we are building the pipeline currently. However, because we have a lot of homework in pillars 1, 2 and 3, which is the focus this year, and this is what we are focusing on. And with a little bit of resources, we are also working on the fourth pillar.
So from this one, we go on to give you a concrete example what we have delivered already in the transformation. So we have implemented the SBU structure or more the business-orientated structure as focused on the SBU, giving more responsibility there. And we will change our reporting as of the year 2027 to a business unit segment reporting, which follows the steering we are currently implementing in NORMA Group. Secondly, the Shared Service Center, and you see a photo from Novi Sad in Serbia, what we are expanding. We have about 80 people working there in different functions, from HR, from sales, from supply chain and various other functions where we are bundling our resources and sharing really also processes, making use of digitalization and run this shared service center where we see very positive results.
SG&A improvements we have seen in the U.S. and in Europe, headcount reduction with voluntary leavers program, which are running according to plan, a little bit better, and we foresee that we go ahead as planned and communicated to you already. So performance orientation, this is basically the sales push based on the agreements with our sales team. So we see really that we can build on the very strong gross margin we have in NORMA and really fix our top line situation.
So then to give you the key KPIs, our net sales in the Q1 2026 is EUR 208.6 million, slightly lower than 1 year ago. The basic effects are exchange rate effects, also some organic or some volume effects. Lucky enough or it's a good message is that we are having an organic growth in industrial applications, which is, of course, our focus in the growth areas.
Adjusted EBIT with EUR 6.3 million, a significant improvement towards last year's Q1, and this translates into the adjusted EBIT margin of 3%. So this is really the big step forward we have made. Of course, we are careful for the year ahead, and we are also very careful at managing the cost situation and of course, also the sales side. Net operating cash flow negative. This is Former NORMA, very important to notice, and we will later on explain how this comes together here.
And with this, I will hand over to Okan to give us some more insight in the key financials.
Exactly. Here on the next slide -- and also a warm welcome from my side, everyone. Very happy to be here and very happy also to engage with you for our quarter 1 results.
So let's deep dive a little bit more into the financial development of Q1. As Birgit mentioned earlier, a quite solid quarter in the year 2026 in terms of sales, we reached EUR 208.6 million, which is a year-over-year development of minus 5.7%. As already mentioned by Birgit, main driver of this decline is attributable to FX headwinds we saw globally and primarily -- or let's say, globally of EUR 9.7 million, of which EUR 6.8 million were related to the U.S. dollar development and EUR 1.9 million to the renminbi in the China region. In terms of volume and pricing impact, we managed an organic -- to reach an organic growth of minus 1.3%, which represents EUR 2.8 million. That means we -- on a volume basis, the business declined. However, we could offset this by positive pricing impacts, which led then overall to the minus 1.3% year-on-year.
So let's move to the next slide, to deep dive a little bit more into the performance of our business units, starting with the Industry Applications business on the left-hand side. We ended the year with EUR 66.3 million in quarter 1. This represents a decline of minus 0.6% year-on-year. And the main drivers here have been, again, the aforementioned currency impact, which basically impacted the development by minus 5.4% year-on-year. And in terms of volume and pricing impact, important to emphasize here, also mentioned already by Birgit, we've been able to increase our performance in the Industry Applications business organically with 4.9% year-on-year, which was mainly driven by a stronger demand in the APAC region and a ramp-up of a major project in, specifically, the APAC region again.
So let's look at the Mobility & New Energy business. So here, we achieved EUR 142.3 million in the first quarter. This represents a decline of minus 7.9% year-on-year. Main drivers here have been a softer automotive demand, which led to a decline on the volume and pricing side represented by minus 3.9%. And again, a currency impact also in the Mobility & New Energy business at minus 3.9% year-on-year.
On the next slide, we see the regional development. So again, starting on the left side with the Americas region. Q1 2026, we achieved EUR 65 million sales in the Americas region. This represents a decline of minus 10.9% year-on-year, again, mainly driven by FX and also by the softer automotive demand, as already mentioned. However, at the same time, we've been able to improve our EBIT margin by 1 percentage point year-on-year. And with that reached 4.6%, which is mainly due to positive pricing impacts in the Americas region in the first quarter as well as tight cost management in the region.
Moving over to the EMEA region. Here, we reached EUR 114.1 million in the first quarter compared to quarter 1 2025. This represents a decline of minus 2.9% year-on-year. Also here, we achieved a very significant improvement of our EBIT margin, 4.6 percentage points compared to Q1 2025. Main drivers here have been operational improvements and also a tight cost management.
Next is the APAC region. The first quarter sales are at EUR 29.5 million, which represents a decline again compared to Q1 2025 of minus 3.8% year-on-year. But also here, we've been able to hold the strong EBIT margin that we saw in the full year 2025 above 10%, which is a very solid performance, again, underlines the fact that we've been able to sustainably improve the operational situation in the region and at the same time, are very disciplined with our spending and cost structures.
Let's move to the next slide. So on the next slide, we see more details on our adjusted EBIT development. So we already saw the EUR 6.3 million of adjusted EBIT, representing 3% EBIT margin in Q1 2026. From left to right, we see basically the main impacts or the drivers that supported this improvement, a significant improvement from an adjusted EBIT in Q1 2025 at almost 0, which was mainly impacted, let's say, on a volume and price basis by the weakening demand that has been mentioned. And this basically led to a reduction of EUR 7 million, in terms of volume and pricing impact.
At the same time, we can see that across the material, personnel costs and other OpEx elements, we've been able to offset this negative impact from the volume reduction. Starting with the material cost, the impact year-on-year was at EUR 8.7 million. Main driver here have been a positive mix or favorable mix and at the same time, also an improved material cost ratio compared to Q1 2025. In terms of personnel costs, we could achieve an improvement of roughly EUR 3 million, EUR 2.9 million, mainly a consequence of a lower headcount and improvement in the personnel cost area.
Other OpEx, plus EUR 2.5 million. This underlines, again, the aforementioned disciplined cost management across the organization and basically helped to support the improvement of our EBIT globally. D&A and FX largely stable compared to Q1 2025. And just to round up what Birgit already described in terms of the transformation program. In the first quarter, our transformation program contributed another EUR 3.8 million to our results compared to Q1 2025.
So on the next slide, I will briefly walk you through the Q1 operational adjustments and outlook full year 2026. So in the first quarter, adjustments were limited and fully in line with our expectations on EBITDA level, we basically had an adjustment related to transformation severance and project costs of EUR 0.6 million. On EBIT level, we had an adjustment in total of EUR 1.9 million, which includes an additional EUR 1.1 million amortization of PPA. And in terms of net profit, the adjustment is at a total of EUR 1.4 million, and this is post tax. For the full year, this mean basically that our expectations are remaining unchanged. So we are still expecting a total of approximately EUR 24 million of adjustments on the EBITDA level and EUR 29 million adjustments on our EBIT level.
So here on the next slide, we will give you some more details, as mentioned earlier, on the Q1 2026 cash flow development. First of all, it's important to emphasize that on the left-hand side, our adjusted EBITDA in Q1 2026 is representing Former NORMA. So EUR 20.7 million adjusted EBITDA includes the water management business. This is in line with the provisions of IFRS 5, that we applied, let's say, in context with the water management sale that took place in the beginning of this year.
Our net operating cash flow ultimately ended up at minus 19.7% (sic)[EUR 19.7 million]. And the main driver of this negative development was the trade working capital impact with minus EUR 33.6 million, of which a significant impact was again related to the sale of the water management business. So here, particularly, we basically had to adjust for or could adjust for the supply chain financing program that have been reduced in the context of the sale as well as a seasonal inventory-related effect out of the water management business, which is also part of the EUR 32.7 million that you see here on the page.
From our net operating cash flow, if we then also deduct the interest and the tax as well as the proceeds from the repayments of the derivatives, we get to our external free cash flow of minus EUR 29.2 million. Again, important to emphasize this here, without the one-off impact out of the water management sale, our operating -- net operating cash flow would have been positive, which underlines that NewNORMA has a positive cash generation also in the quarter 1 2026.
On the next slide, we will briefly recap on the balance sheet reset and initial shareholder returns. So starting with the water management divestment, which has been concluded according to the time plan and schedule. So we could basically get the net proceeds as planned of approximately EUR 650 million post tax in full year 2026. So with that, also according to our plan and previous announcement, we parked basically or earmarked a debt repayment of up to EUR 300 million in the first quarter, EUR 290 million were already repaid. And with that, we are basically very close at the communicated EUR 300 million.
The remaining debt is basically consisting of promissory notes with different maturities, also included in the EUR 98 million are basically leases around about EUR 20 million.
In terms of shareholder return, we've communicated that we are committed to return to our shareholders a total of EUR 260 million, of which EUR 53 million have been returned already in early Q2 2026 via a public share buyback offer, as you know. And with that, we can basically conclude that all in all, we are on track to reach the EUR 70 million to EUR 90 million net cash position by the end of 2026 and again, also confirm what we've shared with you within our communication on 31st March this year.
So with that, Birgit, back to you.
Thanks, Okan, for giving us this insight into the key financials. So you heard it was an encouraging start for NORMA Group in the year 2026. We have clearly defined actions on our transformation journey to build NewNORMA, to build an industrial powerhouse, and we are fully engaged to make this happen. The year 2026, we have a quite volatile external surrounding, but we are working fully on our homework to make this a successful complete year in 2026.
Given the situation, we confirm our guidance. And just to remind you, the net sales is in the range of -- we foresee in the range of 0% to 2% growth. The adjusted EBIT margin, we see in the range of approximately 2% to 4% and the net operating cash flow, we see approximately between EUR 10 million and EUR 20 million. So we have promised and we still keep this that in the second half of this year, we will invite and give a strategy update with more insights on our target vision for the year 2028.
And with this, I say thanks for the attention, and we open up for questions. Thank you.
Thank you.
[Operator Instructions] And our first question today comes from the line of Nikita Papaccio from Deutsche Bank.
2. Question Answer
The first one is on your guidance. I mean, with your EBIT margin, you're already in line with your guidance range, while net sales are significantly down compared to the 0% to 2%. What are you seeing going forward this year? Do you expect H2 to be stronger, for example, compared to H1 due to orders kicking in and restructuring measures? Or what should we see here?
Yes. So thanks, Mrs. Papaccio, for this question. So yes, we see the next quarters actually to be somewhat stronger. We have some measures in our hands, which we are working on. to ensure that we can meet the guidance of 0% to 2%. As you have seen in the Q1, we are quite lower. Of course, the exchange rate was not playing in our favor, but also without exchange rate. And with the EBIT margin, as you said, we are in line. We are, of course, also working on this to keep this. So for this reason, we keep the guidance and we confirm the guidance.
And if we think about your adjusted EBIT bridge for the next quarters, should we expect a similar tailwind from material and personnel costs as we saw in Q1?
Should I take that? Well, in terms of material costs, as of now, we expect a similar situation. However, due to the, let's say, a very volatile situation in terms of geopolitical crisis and also economical impacts out of that, yes, it's hard to predict as of now, let's say, what will happen. But with everything we know as of today, we don't see any, let's say, immediate impact on our material costs.
In terms of personnel costs, I've mentioned the EUR 3.8 million for the full year. We've communicated EUR 15 million incremental sales out of the transformation program. So we are here fully in line with our quarterly performance, if you will. So here, I would assume that this will stay more or less the same. There will be a ramp-up, let's say, towards the end of the year. But also here, we confirm again the EUR 15 million that we have communicated earlier.
And my last question, I mean, we have already May. How is Q2 evolving so far? Are you seeing any signs of improvements in the environment in a specific region or business segment?
I couldn't get the first part of the question.
Q2. Sorry...
How Q2 is evolving?
Okay. So well, currently, we don't see any specific improvements of the situation. But at the same time, we also don't see, let's say, any negative impacts that will, let's say -- yes, that will have an impact, let's say, on our performance. But again, getting back to what I said earlier, it's a volatile environment we are in as of today so far. And I think we proved that also with our Q1 performance, we are basically in line with the expectation. And as of now, as of today, this is basically what we can confirm. That also means without any, let's say, a dramatic or significant changes, yes, we would basically expect or assume that the situation would more or less stay in line with our expectations.
[Operator Instructions] And our next question comes from the line of Yasmin Steilen from Berenberg.
I have also three, if I may, and I will take them one by one. So the first one on the net operating free cash flow. I just try to get my head around the net operating free cash flow guidance. So according to the slide in the presentation, the cash out is almost solely attributable to the water management. So adjusted for this, the net operating free cash flow was already around EUR 13 million in the first quarter. So even assuming the cash out related to restructuring measures, the EUR 10 million to EUR 20 million guidance looks not very ambitious. So could you please walk me through your assumptions there?
Sure. Thank you for the question, Yasmin. Also here, as of now, we are fully, let's say, in line with our expectation. We -- when we came up with our guidance on our financial KPIs, we try to incorporate, of course, the situation with everything that we can predict in terms of external factors. As of today, we can basically just underline and confirm that we are very comfortable with our guidance for all the 3 elements, so net sales, EBIT and net operating cash flow.
As we don't know, let's say, how the situation will develop globally and also for us as NORMA. So the first quarter might look positive. And yes, as you mentioned, there is also, let's say, another impact out of the transformation program. But as of today, with everything that we know, we feel comfortable with that guidance also in terms of net operating cash flow.
Okay. Then the second one is on the new pricing strategy. Could you share more color on the measures by segment? So what is your target in terms of volume price? Is it more geared towards industrial application? Or do you also focus to increase the prices on the M&E segment?
Well, it's actually for both segments relevant. Maybe starting with M&E. M&E is, of course, a highly competitive market we are in. So -- and we have actually the right products, which our customers are confirming. We have capacity. We have the assets installed. And so we work very diligently through our numbers, what pricing we can offer to have the right market share and to work on our top line. As we have seen also in Q1, we are not where we want to be. So this is on the M&E side.
On the industrial applications, it's a little bit different. And it's also different industry by industry. We have currently 7 focus industries, plus, of course, our distribution business. And we do the pricing following each industry, what is the competition, where are we competitive and also following our cost basis in our plants, in our company. So based on this, we have worked out very individual pricing strategies that we are covering our costs, of course, that we are profitable and that we are competitive in the market. And we see here actually the first results that we can achieve nice new business in different areas.
However, pricing is very different if you talk about data centers, if you talk about white goods, if you talk about aviation. So it's for each industry, it's a different pricing, what we are applying basically.
Perfect. And I know it's very early stage. But after your discussions, the first discussions with customers in the Industrial Applications segment, how should we think about the midterm growth trajectory in this segment? What is possible also based on the order intake you have realized already? That's my last question.
Yes. Thanks for this. So we worked out really focused industries, seven focus industries. They have different growth potential, sort of in terms of numbers, of course, we will share more in our strategy update. But to give you a first flavor, the addressable market we see in these focus markets for industrial application is significantly bigger than we have in M&E.
So the next question would be, do we have the right products which fit for this application. We can broadly say, yes, there may be normal adaptations required, and we have the right engineering capabilities in-house to make this happen in a right -- actually in a really good timing, which also our customers appreciate a lot that we have this. So there is really very nice growth potential in the industrial application industries.
[Operator Instructions] There are currently no further questions. This concludes today's Q&A session and today's conference call.
Thank you for participating. You may now disconnect.
NORMA SE — Q1 2026 Earnings Call
NORMA SE — 2025 Earnings Call
1. Management Discussion
Very warm welcome to all of you. Good afternoon, good morning to this year's earnings call 2025 for NORMA Group. With me today, I have Okan Celiker, our acting Group CFO. Very warm welcome to you, Okan. It's Okan's second day. So I'm convinced Okan will present the financials in a very good manner and will ask your -- and answer your questions. Please be patient with Okan. So today, we will include basically 3 points. We will review our results 2025. We will provide the outlook for 2026. And we will, number three, give a sneak preview for our strategy for the new NORMA Group. So on the next page, you see our usual disclaimer. One important thing to note is that we have continuing and discontinued operations due to our divestment of the Water business, and we have marked this clearly as former NORMA or new NORMA in the presentation going ahead. So we will see here a summary of our achievements in 2025.
So basically, we see the closing of the water management, the divestment on the top right corner, which really marks a milestone for us at NORMA Group, where we achieved EUR 650 million of net proceeds, and this is a great enabler to build new NORMA. We will propose a dividend of EUR 0.14 per share at the next AGM this year. Also, we delivered on our guidance. However, it was a very tough and challenging year for new Norma, what we will review shortly. We have conducted this public share buyback. You are aware, and this was successfully concluded. Tonight, we will publish the results on our Internet, and you can review them. So we enter 2026 with a net debt-free situation after the water management sale, and we give significant return to our shareholders.
So this is a sharp focus what we have now, this strategic realignment and it opens the doors and gives the foundation to become really an industrial powerhouse for connecting solutions. The preview of the strategy will come later in this presentation. So let's now start with a brief recap of our financials. You have received the preliminary results in February this year already. Okan will later on give you some more details on the financials. So again, new Norma reflects the perimeter without water management going forward and the 2024 revenues, we have restated accordingly for new Norma.
So let's look at the summary. Net sales totaled to EUR 821.7 million, lower than last year. The adjusted EBIT at EUR 6.3 million, again, significantly lower than last year and the adjusted EBIT margin at 0.8%, also lower than last year. Of course, this is not what we want. This was a very tough year. And from this, we have to reset in this year to build new NORMA and to really go forward and grow in all our parameters here. Net operating cash flow, again, this is the formal NORMA view. So we achieved EUR 95.8 million in 2025. So also we have delivered in guidance. Again, this is challenging for us. It was very challenging. However, now with the divestment, with the new situation with the new strategy, we will have a good basis for new NORMA, and therefore, we are going to reset and start with this new setup. For the next financial topics, I will hand over to Okan, please.
Thank you very much, Birgit, and hello also from my side, a very warm welcome. I'm very excited to take over this role, and I'm also very much looking forward to engage with all of you going forward. So let's look at the details of our financial development on the next slide. Starting with our net sales, our jump of base in 2024 for new NORMA was at EUR 882 million throughout the year, we saw a volume impact of EUR 37 million as well as a price impact of EUR 4 million, mainly coming especially the volume impact from a weakening market demand. Then on top of that, we had a negative impact from the currency and the exchange rates here primarily impacted by the euro-U.S. dollar exchange rate totaling to EUR 18 million -- or roughly EUR 19 million, which overall got us then to EUR 822 million for the full year, new NORMA, which is in line with our guidance given in October last year.
Let's look at the next page, please. So again, we are looking at the net sales this time focused on the strategic business units. Also, again, of course, new NORMA. I'm starting with the left side, the Industry Applications business unit. Our net sales in the Industry Applications business increased year-over-year by 8%. However, this includes a reallocation of the Mobility and New Energy business of EUR 34 million roughly. On a like-for-like basis, this means our sales declined by 6% to EUR 252 million. Also inside this development is a volume and price impact of EUR 8.7 million and a currency impact of EUR 6 million. Now moving on to the right side to the Mobility and New Energy business. Our net sales year-over-year declined by minus 12%.
Of course, again, also here, including reallocation this time from the other way around, basically from mobility to industry application. That means like-for-like, the sales reduction was at 7% in the Mobility and New Energy business and the corresponding volume and price impact was at EUR 33 million, currency impact, EUR 13 million. This gets us to the EUR 570 million 2025 net sales Mobility and New Energy business. All right. Next page. So on the next page, we are looking at the breakdown by regions. Again, we are looking at obviously new NORMA. I'm starting with the left side, Americas region. The net sales declined in the Americas region by 8% year-over-year. We've been able to counteract and balance that a little bit due to initiated cost improvement initiatives in order to cover the inflation.
Overall, that got us then to an EBIT margin -- adjusted EBIT margin of 3.8% for the Americas region. Moving on to the EMEA region in the middle of this chart. In the EMEA region, our sales declined by 7% year-over-year. And the adjusted EBIT margin declined by roughly 5%, mainly impacted by extraordinary impacts in the EMEA region in the year 2025. The APAC region, the net sales development was at minus 6% year-over-year with a stable, basically very positive adjusted EBIT development from 9.5% to 10.8%, mainly driven by positive product mix impacts in the APAC region. Also important to mention here, in the future, we will focus more on the strategic business units and also the reporting of the strategic business units.
This is just as an FYI here in our presentation. And with that, we can also move to the next slide. So on our next slide, we are looking at our adjusted EBIT development. Our jump off base adjusted EBIT New NORMA 2024 is EUR 33 million. Throughout the year, we saw already mentioned strong volume and price impact reflected in the EBIT margin with minus 18%. However, we've been able to balance that a little bit with positive developments in the material cost area due to sourcing effects -- positive sourcing effects basically that supported a positive development of the material costs.
On the other hand side, we also had our first transformation program savings kicked in, in the personnel cost area, but this was negatively overcompensated especially in the direct area of our personnel costs. Other OpEx and depreciation and amortization have been largely stable. And with an FX rate impact of minus EUR 6 million, we achieved a total adjusted EBIT of EUR 6.3 million in 2025. So let's move on to the next slide. On the next slide, we see the EBIT margin development. So the EUR 33 million that we saw on the previous page is in percentage 3.7%. And with all the impacts that I've just described on the previous slide, we achieved a -- consequently achieved an EBIT margin of 0.8%, which is also in line with our guidance given in last year, which was between 0% to 1% EBIT margin.
All right. So let's look at our operational adjustments in 2025 and 2026. I'm going to start with the EBITDA. The adjustments on EBITDA level full year 2025 are mainly related to transformation -- to our transformation program and in that area related to primarily the severance payments and amounts to EUR 32 million. For 2026, we expect another adjustment on EBITDA level, again out of our transformation program of another EUR 24 million, which basically represents an acceleration of our transformation program. So we are basically pulling forward initiatives defined in our transformation program that we initially planned to conduct in the outer years into 2026. On the EBIT level, we see an adjustment of in total, roughly EUR 90 million on top of the EUR 30 million that I've just mentioned in 2025, we have here another EUR 55 million of PPA amortization, of which EUR 50 million is related that we undertook in the EMEA region and communicated also in November last year.
In 2026, we are expecting another EUR 29 million approximately. In addition to the EUR 24 million that I've mentioned earlier, this includes EUR 5 million of additional PPA amortization out of historical M&A transactions that we undertook. We expect this EUR 5 million to stay with us for the next couple of years, but on a slightly declining level. Net profit overall -- on a net profit level, the adjustment is a total of EUR 80 million roughly, which includes a EUR 10 million tax impact compared to the adjustment on the EBIT level. For the earnings per share, then consequently, we achieved EUR 2.45 in the full year 2025. And due to the fact that we are currently planning a capital increase, which is subject to the approval during the Annual General Meeting, we decided to pause the earnings per share guidance for 2026.
Okay. So next page is we can see our dividend development. So for dividend purposes, we are looking at our adjusted net income of former NORMA so that includes the continuing and the discontinued business as well as the adjusted earnings per share, again, for former NORMA. So the adjusted net income in 2025 for former NORMA was at EUR 14.3 million, and the adjusted earnings per share was at EUR 0.45. And with the dividend of EUR 0.40 that we proposed that was mentioned initially by Birgit, this results in a payout ratio of 31% for our dividend 2025, which is, again, in line with our dividend policy of 30% to 35%. So on the next slide, we see the cash flow development for full NORMA or former NORMA, again, important to mention here. So we are starting with our adjusted EBITDA of EUR 125 million for the continuing and discontinued business 2025, which already represents a reduction compared to 2024 of roughly EUR 19 million.
From there, our net operating cash flow for the full year 2025 is at EUR 96 million, which basically is just a decline of 9%. So how did we manage to reduce the decline compared to the EBITDA decline, primarily to a positive trade working capital impact, which is resulting from a positive impact out of the inventory management and also a lower supply chain financing program, roughly EUR 5 million, which also contributed here in that area. And related to our CapEx, we've been quite disciplined, and this also helped us to reach that net operating cash flow of EUR 96 million. Together with the payments for interest and for tax, we achieved for the former NORMA in 2025, an external free cash flow of EUR 52 million.
Let's look at the next page, where we will walk you through our full year net debt development. Important to mention here in the beginning, on the left-hand side, we are looking at former NORMA. On the right-hand side, we are looking at new NORMA. So starting with the left side, our net debt in the beginning of 2025/end of 2024 was at EUR 330 million. Roughly, we've managed to reduce our net debt despite, let's say, the challenging environment we've been in by roughly EUR 13 million. This was supported again by the external free cash flow that I've just walked you through of EUR 52 million. On top of that, we had dividend payouts and also other developments, let's say, within our net debt that got us ultimately then to the EUR 316 million. So if we now move to our expected net debt for 2026. We adjusted in the first step our baseline for 2026. And why is that? Because we had a net debt portion that we deducted, which is attributable to the Water business amounting to roughly EUR 10 million. And with that, our new baseline is at EUR 306 million.
Based on our guidance, which Birgit will share in a few with you, we also expect an external free cash flow in a range of plus EUR 10 million to minus EUR 10 million in 2026 and another dividend payout that we've just described. of EUR 4 million. And then, of course, we have the big impact out of the net proceeds from the Water management sale of EUR 650 million as well as the shareholder return of EUR 260 million, which then overall gets us to a positive net cash position expected for 2026 in the range of EUR 70 million to EUR 90 million. And with that, I hand over again to you, Birgit.
Thank you, Okan, sharing with us. And with this, we leave the year 2025 behind us. It was a really challenging year for NORMA, and we move ahead looking into 2026. What have we organized for 2026? What have we planned for '26? It was a very good start with the divestment and the closing of the Water management. We could reset our balance sheet and the whole year 2026 is a year of reset. So what will this look like? So let's look at the outlook. So we see here the net sales. So we foresee a growth in the area of 0% to 2%, so very slight growth. We look at the adjusted EBIT margin, and we see the range of 2% to 4%. So -- and we are confident to run this. This is based on our forecast, our internal forecast. We have the full 2 months in this year already completed and March is actually by to date and also completed. So this was leading us to this adjusted EBIT margin outlook.
Looking at the net operating cash flow, we see the range of around EUR 10 million to around EUR 20 million. If you compare with 2025, please reconsider, as explained before that this is not comparable with the new NORMA, but it's based on the former NORMA basically. So we think this is also a reasonable and good range for us. In terms of dividend policy, I want to make you aware that in the first sentence, we confirm the dividend policy. We have added one important point for us that this dividend is subject that the NORMA Group SE reports a net profit in its annual financial statements. And this together brings us the updated dividend policy. In terms of target vision for the outer years, we will provide a strategy update in the second half of 2026. This will include the content of our strategy and also our target ambition for the outer years.
So we move on now to the assumptions we have taken to come to our guidance. So starting with the top line. So we looked at the markets, and we are all aware of the situation in passenger cars and commercial vehicles, passenger cars slightly negative. Commercial vehicles slightly positive. Mechanical, a flat market and in construction, some moderate growth depending on the regions. So we have also included net sales from our business between industrial applications and ADS. This is the buyer of our Water management business in 2026, which is really planned to end by the end of the year 2026. A further important assumption is that stable geopolitical impacts like tariffs and so on. Of course, it's the question what is coming this year, but we concluded that this is the best assumption we can take for the moment.
Of course, we are watching and monitoring very careful and very diligently what's going to happen, and we will manage in our best possible opportunity any changes which are coming. Looking at the bottom line, we see the EUR 16 million one-off cost from 2025 which we have reported. So we see also the EUR 15 million from the transformation program, as you are aware, and we have reported the personnel cost inflation, we kept on a stable level compared to the last year, and we also assume stable energy and raw material prices. Again, here, we see maybe some impact, but this was the best assumption we could use for our outlook for this year. We have some cash flow drivers. So the net operating cash flow is lower than in 2025 because of the closing of the water management sale. And also important, we have now lower effects from supply chain financing, again, due to the water management sale compared to last year. And of course, we have cash-related expenses from the transformation.
FX assumptions are stable. So same FX rate in our planning for the U.S. dollar and the CNY basically. So with this, we move on to some housekeeping topics. I'm not going through all the details here. Maybe one point is important. The interest income, we have an income of EUR 5 million. However net it's EUR 1.5 million as a result of the net debt-free position and depending on the interest rate, the others, I think you will read yourself. And basically, we have explained the mechanism already for this one. Now we are moving on, and this is really the new NORMA update. New NORMA being the strategy for the outer years. And here, we are very excited to see on the next page, what we have done for the foundation.
So basically, we focused our business. We focused our business towards this industrial powerhouse, which is industrial application and M&E, mobility and new energy. What does this mean? We can deliver our connecting solutions to a very wide range of industries, and we have huge potential. So the focus makes absolute sense. We have an improved capital structure, as we've just explained, and this gives us very good flexibility to build new NORMA. We are simplifying our organization. Are we there yet? No, we are on a good way. We are making very nice progress. So this means that we reduce our SG&A to a competitive level, which is very important. And we also bring our organization in a situation that we can make fast decisions, and we have a very business-oriented steering for new NORMA.
Our footprint optimization, which has delivered very good results. We closed 2 factories in China already, and this is a great outcome here. We see very good operations. We are in the process and focusing our operations in Mexico further, and we will go on and continue our footprint optimization. So we see on the next page, what are our enablers. This is the strategic focus. So we prioritize attractive markets. Now you may say, what are these markets? And we are in the evaluation, just to give you some insights, we are talking about white goods. We are talking about aerospace. We are talking about life sciences, data centers, all of these markets, very attractive markets. And I can say we have the right products.
And maybe to give you some insights about my first months in NORMA, I've met many of our customers in the meantime, and they confirm that we have the right products, which is very good for us. However, for many of these industries, we have currently very low market share. So why is this the case? Because our focus was before not on these industries. Now with new NORMA, we focus on the right markets, and I'm absolutely confident we will have great results and great progress there. Execution discipline, so cost management and the cost management for all our cost elements is what we are improving, what we are driving daily, of course, working capital focus and operationally to have accountability, to have a performance culture in our operations will really contribute to new NORMA.
Implementation speed, again, with the reshaped organization, we will accelerate our decision-making, and we will focus on the SBUs. This means we will take business-driven decisions. We will take market and customer-oriented decision where we also focus our decision-making, our responsibilities on the business units. So what does this mean now coming really to the core of our strategy? You see 4 pillars. And these 4 pillars are the core basically and to give you some early insights. So to the left, you will see restructuring. You are aware of our transformation program as we have communicated and we are fully implementing and we will go on with SG&A improvements. We currently know that our SG&A are not so much competitive. So we will bring them with the restructuring program on a really competitive level and we will bring performance orientation inside new NORMA.
The second pillar is the footprint. And with the footprint, we talk about plants and we talk about sites. So as just mentioned, we are on a good track here. However, we will go ahead. So end of the day, we will have for NORMA plants and sites, which fits to our business to the size of our business and also to the nature of our business following our customers and our products. So we will have a target operating model, again, which really fits the new NORMA with our connecting solutions. The third pillar is a sales push. So we will and we want to have new business wins. This means to grow our order book. So with this, we have been working already and we will further work on our commercial situation, our pricing strategy and with this to increase the plant utilization across new NORMA.
So focus really on the customers, on the end markets, and we have started already to bring a target costing live in NORMA, meaning that we are competitive. We understand the markets very nice, and we have target costs and we run the measures to meet these targets. The fourth pillar is about growth. So currently, we are evaluating markets and market segments where we foresee a very good growth, organic growth and inorganic growth. And this is currently again in evaluation. An update will come in the second quarter for our strategy update. So with this, we go ahead and talk about the time line because I'm sure you are curious when this will be all executed. This year 2026 is the year of the reset, we strengthened, this foundation and we build it.
As Okan also said, we are working also on reporting on steering the business, really focusing on the customers, on the markets on our business will be detailed in the strategy update next half of 2026. The year 2027 will be the year of optimizing. So we will see performance improvement already there and the year 2028 and further out will be the years of growth where we have really positioned our structural opportunities. And then we go ahead, and I say a big thank you for listening to us, and we are looking forward to receive and answer your questions.
[Operator Instructions] And our first question is from the line of Nikita Papaccio from Deutsche Bank.
2. Question Answer
I would have 3, and we will go through them one by one. The first one, thanks for clarifying on the restructuring program and the higher cost this year because of you pushing forward the measures, as I understood. Could you maybe elaborate a bit more which measures these are and how the time line is then for 2027 and beyond, especially also on the savings side?
Okay. So I will start with the restructuring program. There's basically the transformation program as we have announced already, this is in full execution sort of -- and we will really in the strategy, look at the whole restructuring requirements and answer this then in the second half. For the known transformation program, we can give already the numbers. And maybe, Okan, you give us some insights.
Yes, exactly. So as already mentioned, we achieved savings according to our plan that we've communicated last year with regard to the transformation program. In terms of savings in 2025, EUR 4.5 million, and in 2026 EUR 15 million. That's what we are planning -- what we are expecting. And yes, to add to Birgit's answer for 2027, yes, due to the pull forward of specific initiatives, of course, we do also expect a slightly earlier kick in for certain initiatives. And as also mentioned by Birgit, we will bake that into our planning, which will be the new basis for us going forward and will be presented in H2 this year.
And the second question is on your midterm outlook. I mean, I understood fully that you are giving us a strategy update in H2. But I was thinking about your -- especially on your Mobility business. For now, you are seeing no growth in this business. I understood that you are trying to gain more market share, especially in the APAC region. Any indication how to achieve 10% margin or more in this segment? I mean, with the increase in volume, potentially you would see a decline in prices, right?
I just repeat your question because it was a little bit broken. So I understand that you are asking especially for our midterm outlook, especially focused on the APAC region where we see a 10% margin. So I mean, yes, as you rightly saw, we have currently a good margin in the APAC region. In 2025, we had really some improvement, and we are very happy about this. For the midterm outlook, we are still working on this. Regions are all different. The markets are different. They are going in different direction. So we will get the midterm outlook then as part of our strategy update to ensure we have a good evaluation of data we are giving and then we can present this with a high confidence level to you.
The question was regarding the Mobility segment and its target of 10% margin overall. So it's not on APAC in specific, but globally.
Okay. Okay. Thanks to clarify this. For the Mobility segment, I mean, it's the same. It's also one of our industry segments. And there, we are also assessing this. There is also an impact what we will achieve with the restructuring, what we will achieve with the footprint. This all has an impact, of course. Also our commercial update has an impact on the offerings on our competitiveness. So -- and this will also have a significant impact, of course, on the margin level also in the Mobility segment. So here, we are also in a very detailed and deep evaluation and we'll give an update also here in the second half of 2026.
Okay. Understood. Final question for me. I mean you mentioned that you're assuming stable supply chains and tariffs and so on. What is the current situation with regards to Middle East? Any impacts you're seeing indirect or direct?
So thanks for this question. The impact in the Middle East. So basically, we have no own operations in NORMA. In Middle East, we have a business which is roughly EUR 1 million of revenue. So we see, for sure, in the freights and so on, some impact, some delays, which is getting more complex, some increased cost, of course, also in the energy. But further on for the moment, we do not see any severe impact on our operations. However, we are monitoring very closely, and we are also preparing the different scenarios, what we can do and how we can manage the situation.
[Operator Instructions] We have a question via text message. I'm just going to read that for you. It is from Harald Eggeling from ODDO BHF. What are the underlying assumptions for the upper and lower end of the guidance ranges?
Let me take that. So yes, I think we've, of course, consciously decided to give our guidance with ranges this year, of course, due to the, let's say, situation we see on the geopolitical side and also on the economical side. I think in general, our expectations and assumptions, Birgit just shared in the housekeeping part of the presentation. So there is not really something that we have to add to these assumptions that we took and baked into our guidance. So it includes stable material prices. It includes stable FX rates. We've been, however, a little bit cautious, as said, due to the developments that we see, especially geopolitically these days. But other than that, we feel very confident with our guidance and all the 3 elements of our guidance.
[Operator Instructions] We have just received another question. And your next question comes from the line of Andres Gujan from Carnot Capital.
Can you please describe what the situation is in the discussions with the unions in your factories and what the main discussion points are and how confident you are to achieve an agreement?
Yes. Thank you for this question. It's about what is the discussion with the unions. First of all, we have, of course, different situations in different sites, in different plants, there's different unions. I start about Maintal about our plant in Germany, where we have achieved just before Christmas in 2025, a very good agreement with the union, with our works council on this voluntary leaver program, and I can share also the process a bit.
It was a very constructive, a very positive process where we all shared basically the same targets and also the time line until we could conclude was very positive. It was concluded, obviously, before Christmas. So we could get all our employees, our colleagues the opportunity to take the time over Christmas, and it's going extremely well. So this is basically fully booked. So this is a very positive result. So -- and some other plants in some other sites, we are also in good discussions on the way ahead with the unions. However, it's very individual and in very different stages.
[Operator Instructions] And the follow-up question comes from Nikita Papaccio from Deutsche Bank.
Can you hear me now?
Yes.
Okay. Perfect. So another question is on your share buyback program. It just concluded, you said. Any indications for the cash return going forward in 2026?
Well, so as you said, yes, it was just concluded, and we met the target here. We will -- and we plan currently to propose to the AGM a capital reduction so that it totals together with the share buyback in the range of up to EUR 260 million. So this is what we are currently planning.
Thank you. I will now hand the call back to Birgit Seeger for closing remarks.
Thank you. Thanks for attending our this year's call. Thanks for your interest and your great question and looking forward to have the discussion in other forums or on our next Q1 call, which I'm looking forward to, and have a great day, and thanks for your interest and for contribution to New NORMA. Thank you.
Thank you very much.
NORMA SE — Q3 2025 Earnings Call
1. Management Discussion
Good morning, and good afternoon, everyone. Welcome to our Q3 2025 conference call for NORMA Group. I'm Birgit Seeger, and it is my pleasure to speak to you today stepping into the role of CEO for NORMA Group, which I've just started 1st of November.
Together with our CFO, Annette Stieve, I will guide you through the presentation. We will answer your questions after the presentation as is our usual practice. Please allow me to give you some background about myself. Over the past 2 decades, I've had the privilege of working across the global automotive industry as well as other industrial sectors, most recently leading Bosch's worldwide compact actuator business. These experiences taught me how innovation, operational excellence and strong customer partnerships can drive long-term success.
My assignments have been about leading transformation in complex and global environments. Whether in manufacturing, consulting or serving on the Board of international industrial companies, I've learned the importance of combining technical expertise with financial discipline and clear execution. That mindset will guide how we advance NORMA Group towards becoming the industrial powerhouse for connecting solutions by 2028. On the next page, I will give you an impression of what we have planned for new NORMA.
There are 6 points. Point number one, as seen NORMA, we will transform our company into an industrial powerhouse for connecting solutions. This means we will sharpen the strategic portfolio focus to create new NORMA. Secondly, we increased operational excellence and thereby improve margins. To achieve this, we are focusing on cost efficiency, lean processes, a resilient supply chain and improved productivity. Point number three, we strengthened the collaboration with customers. We accelerate growth in segments with high potential. This primarily means growth in segments that are geared towards a strong and broad customer base.
Point number four, we are further boosting our innovation strength and sustainable product leadership. We want to focus even more on quality, research and development, digitalization and sustainability, which are an integral part of the company's product range. Point number 5 is guided by the approach, think global and act local. We optimize NORMA's global presence and local relevance, ensuring that regional strategies are tailored to local requirements and a global optimization is achieved. Last point and the most important is our focus on financial discipline and the creation of shareholder value connected as team NORMA.
Now I want to give you an overview of our divestment of Water Management, which has been communicated already alongside the divestment process. So EUR 1 billion valuation for water management business has been achieved. Value accretive multiple of about 19.3 adjusted EBIT has been achieved. Regarding net proceeds, as it has been published on the day of signing, we aim for the 3-pillar model. We will pay off a large portion of the company's debt.
Secondly, distribute about EUR 250 million to EUR 270 million to our shareholders. This translates into approximately EUR 8 per share. The transaction is subject to approval by the antitrust authorities. Number three, we invest a reasonable amount in our growth in industrial applications to accelerate NORMA's establishment as the industrial powerhouse for connected solutions. Our true north is to reach double-digit EBIT once the industrial powerhouse is successful.
With the next page, I will summarize where we stand and what are the next steps in the divestment process. Signing took place on September 23 this year. The buyer is ADS Advanced Drainage Systems. The accounting impact is assets to be displayed at discontinued from September 30 this year, and we will see this later on in our numbers. The net proceeds are around EUR 620 million to EUR 614 million expected, and the precondition is the customary closing conditions, including the regulatory approvals. So the closing is estimated for the first quarter of 2026, subject to approval by the antitrust authorities, which will determine the date of closing.
We estimate net proceeds of between EUR 620 million and EUR 640 million. This amount will then be available for us for further use. Annette Stieve, our CFO, will explain on the next page how the value of USD 1 billion translates into net proceeds of EUR 620 million to EUR 640 million.
And with this, I hand over to Annette.
Thank you, Birgit, and a warm welcome also from my side. To provide more detail on the estimated net proceeds calculation, we have prepared this slide as a part of our updated transaction presentation from September 30, which is also available to our Investor Relations website.
Today, I would like to highlight the tax facts a bit more in detail. As communicated already end of last year with our announcement of the intended sale, the sold U.S. daughter NDS is held under the Pennsylvania Holding since the -- our acquisition in 2014. This structure brought significant tax benefits to NORMA Group over the last 11 years. As also the other operating legal entities in the U.S. are held under this asset, the same holding as a tax fiscal unity.
Within our early communication on the intended sale, it was -- we clearly communicated that we are expecting a tax rate of around 22% to 23% on the capital gain. This assumption was based on a sale via a share deal. During the negotiation with the potential buyers, it turned out that the best bidder, in this case, ADS, prefers to have the transaction in the U.S. structured as the so-called deemed asset sale. This allows ADS to treat the transaction as an asset deal for U.S. tax purposes.
As a result, they receive a step-up of the tax base of the acquired assets, which increases their future depreciation capacity. The tax benefit for ADS was estimated with an amount around USD 125 million by ADS. On the other hand, the deemed asset sale results in additional taxes for NORMA Group, which are estimated with around USD 50 million versus a share deal and an evaluation of USD 1 billion. It was agreed between the parties that the tax advantages for ADS is to be compensated by an additional portion of the purchase price. As the benefit for ADS is about EUR 125 million and our additional tax payment is about USD 50 million both, so USD 125 million and our additional tax payment is about USD 50 million.
This structure is financially very beneficial for NORMA Group and its shareholders. As the additional purchase price portion brings significant higher net proceeds. So we achieved a win-win situation for buyer and seller. With this negotiated success, we have enabled estimated net proceeds to NORMA Group of around EUR 620 million to EUR 640 million. And thus, about EUR 20 per share, what equals roughly EUR 8 per share for distribution to shareholders.
And with this explanation, I hand again back to Birgit coming to our Q3 results now.
Thank you, Annette. Let us turn our attention now to the financial results of the third quarter. Upfront, a note regarding the Water Management business. This has been classified as the discontinued operation with effect from September 30 this year. This means figures related to water management are no longer included in the revenue and earnings development for the third quarter of 2025, as well as proactively to January 1 this year.
Reclassification of some APAC business into Industrial Applications business unit is already included in the Q3 numbers. Where these adjustments have not been made, which means Water Management is included, we have indicated this on the slide. So the net sales in Q3 totaled to EUR 197 million compared to EUR 406.5 million in the previous year. The adjusted EBIT was at EUR 3.8 million versus EUR 7.5 million in the previous year third quarter. The adjusted EBIT margin was at 1.9% versus 3.6% in the last year Q3.
Now coming to the next 3 numbers, and they are continued and discontinued operations. This is the net operating cash flow was at EUR 24.5 million versus EUR 28.2 million in Q3 last year. Equity ratio of 40.5% at September 30, 2025, versus 50.2% on December 31 of last year. CO2 emissions, NORMA successfully avoided 1,193 tons of CO2 emissions, Scope 1 and 2 as of September 30, 2025. So this means our CO2 emission target we have already met for the full year.
Let us now move to the next page, where we talk about our top line development in some more detail. Compared to the same period of the previous year, sales in the third quarter of 2025 decreased by 4.3%. This development is mainly coming from negative currency effects. While volume remained relatively stable, lower prices in our mobility business contributed 0.9% to the decline in sales. As we can see in the pie chart, the right top of the chart, the regional distribution has shifted significantly towards Europe due to the divestment of water management.
Let's move on to the next page and discuss the sales development by strategic business unit. For Industrial Applications, sales increased by 12.2% in Q3 of this year. This increase was partially due to reallocation of business from our business unit M&E to industrial applications, in particular, sales from construction and agricultural machinery as well as stationary energy storage. Positive volume development led to a growth for industrial applications. Unfavorable exchange rate effects had a counter effect.
In Mobility & New Energy, sales were 10.4% below previous year. This was driven by reallocation effects and due to the impact of a cyber attack at one of our major European customers. For APAC, we recorded growth in Q3. Unfavorable currency effects contribute to the decline of the top line. Let us move to the next page to discuss sales developments in the regions. In the Americas, sales declined by 4.9% to EUR 66.3 million compared to previous year. The main reason for the decline were negative currency effects.
Adjusted for exchange rate effects, the third quarter shows growth of 1.2%. Sales in EMEA were EUR 100.9 million in the third quarter of this year, 5% lower compared to previous year. This resulted from a difficult market environment for mobility, including a cyber attack on a major customer. In APAC, sales were EUR 30.3 million in the third quarter of this year, down 0.7% compared to same quarter of previous year. The positive development of the business was offset by negative currency effects. On the next page, we will look deeper in those developments.
In the Americas, sales in the business unit, Industrial Applications recorded an increase of 15.1% compared to previous year. Top line growth was supported by reallocation effects. Negative currency effects counteracted this development. In Mobility, sales decreased by 13.6% as a result of lower volume as well as reallocation and currency effects. In EMEA, industrial application sales increased by 10.3% due to the reclassification of revenues in the current year. In M&E, sales decreased by 10.3% due to weak market demand and the cyber attack at a major customer. In APAC, industrial application sales increased by 10.3%, supported by reallocations of sales. M&E sales growth has compensated negative effects of reallocations. Unfavorable currency effects led to a sales reduction by 4.3%.
And with this, I hand over to Annette.
Thank you, Birgit. Let's have a look now at the key P&L figures of our Q3 continued business. Our material cost ratios keep improving. In Q3 '25, we were 10 bps better than in Q3 of last year. On a year-to-date comparison, our material cost ratio even improved by 60 bps. This is mainly due to further optimizations in the area of material and energy costs as well as price increases accepted by our customers. As a result of lower material costs, the gross profit margin rose by 60 bps year-to-date '25. Personnel costs in total fell in the third quarter, while the personnel cost ratio rose by 70 bps due to lower sales volumes and inefficiencies. With our global transformation, we are targeting to sustainably reduce the personnel cost ratio to a normalized level. We will give you an update on our measures at the end of this presentation.
The other expenses were up in total and also the ratio went up from 14.9% to 16.9% in Q3. The main reason for this development are the continued elevated costs for special freights and extra shifts in our Maintal plant. This topic is clearly addressed with specific measures in order to resume to a normalized cost base in due course. The sales decline and still elevated costs in the Maintal plant are reflected in the subdued adjusted EBITDA and adjusted EBIT in Q3 and also our year-to-date figures.
Nonetheless, with an adjusted EBIT margin of 0.9%, year-to-date, we are thoroughly within our guided margin corridor for the continued business of around 0% to 1%. Let's move on and take a look to our EBIT margin by region on the next slide. This, ladies and gentlemen, is for me, personally a key slide in our Q3 presentation. For the first time, we are disclosing our adjusted EBIT margin by region for our continued business. As we were frequently asked if we can really generate decent margins without water management, here's the answer.
In the APAC region, we are at 10.3% in Q3. In the American region, even with all hiccups around tariffs and consumer sentiment, we are generating solid 4.5% in Q3. What remains clearly a pain point is EMEA with an adjusted EBIT margin of minus 0.9%. This is, to a large extent, caused by sluggish sales in the region, but also by continued operational issues in our Maintal factory. These issues and their causes are identified and clearly addressed. The expected financial improvements are duly calculated, and we will revert to that later.
To sum it up and make it very clear, there is no reason at all why the EMEA region, also with even its hiccups in geopolitical challenges should not be able to be as profitable as the other regions. This year's adjustments are, of course, extraordinary in many aspects. As already mentioned before, we assume up to EUR 20 million transaction costs for the sale of the Water Management business. On top, adjustments for one-off or transformation costs up to EUR 30 million are to be expected. The PPA effects for the continued business are expected to be around EUR 6 million. Based on our ad hoc statement from last week, a noncash effective goodwill impairment depreciation of around EUR 50 million was identified for the EMEA region as a result of a mandatory impairment test.
The impairment requirement is mainly caused by subdued revenue assumptions in the EMEA region for the coming financial years. It will have a corresponding impact on our consolidated earnings after taxes, but it will not lead to a cash outflow. Accordingly, the total adjustments in the current fiscal year are expected around EUR 106 million. With these explanations, let's have a look to our net debt and equity.
Before going into these figures, please be aware that the illustrated figures refer to the continued and discontinued business combined according to IFRS 5. Our net debt slightly decreased by 0.9% against the end of '24. Due to the lower EBITDA, leverage was up to 2.4x adjusted EBITDA from 2.1x at the end of previous year. Total equity levels at EUR 585 million. The equity ratio decreased by 500 bps. Main reasons are a negative profit in the reporting period, which was predominantly impacted by the goodwill impairment in the EMEA region of about EUR 50 million and negative foreign exchange rate differences amounting to minus EUR 63.7 million. Nonetheless, the equity ratio still stands at a very solid 45%.
On the next slide, we briefly discuss our cash flow development. Likewise, the previous slide, please be aware the illustrated cash flow figures also refer to the continued and discontinued business combined according to IFRS 5. The net operating cash flow in Q3 decreased by 4.6% compared to the same period last year. This is primarily due to lower adjusted EBITDA. Year-to-date, the net operating cash flow levels at solid EUR 59.1 million, including a decrease in our supply chain financing programs of EUR 3.4 million compared to end of '24. At this point, please let me underline that the cash flows from the continued but also the discontinued operations in the current year belong 100% to NORMA Group and its shareholders.
And with that, I hand back to Birgit.
Thanks, Annette. Let's now turn our attention to our guidance. The guidance for the year 2025 has already been published with the announcement of the Water Management divestment September 23. We confirm our guidance for 2025. For the continued business, we expect sales in a range of approximately EUR 810 million up to approximately EUR 830 million. The adjusted EBIT margin in the continued business is expected to be in the range of approximately 0% and approximately 1%.
The net operating cash flow, here, we see the continued and discontinued business combined is expected in the range of approximately EUR 70.5 million to approximately EUR 95 million. For our Scope 1 and 2 CO2 emissions, we are targeting the avoidance of 1,000 tonne CO2 equivalent emissions at all NORMA Group sites in the continued and discontinued business combined. On the next page, we see details for the adjusted EBIT margin guidance 2025.
Within our guidance for the adjusted EBIT of approximately 0 up to 1%, we have included one-off effects for the current year. These one-off effects are mainly change of the CEO, the D365 ERP implementation in Maintal, including related costs and the cyber attack at one of our largest customers in Europe. Some explanation for the ERP implementation in Maintal. This project caused extraordinary implementation costs of about EUR 3.5 million and higher-than-expected follow-up costs such as special freight and additional staff allocation.
We expect these one-off costs to reach about EUR 12.5 million for this year. The root causes of the issues are identified, corresponding action plans have been set up and are in implementation. In September this year, cyber attack took place at one of our largest customers in Europe. European plants at our customers were shut down until the beginning of October. We estimate a loss of adjusted EBIT of approximately EUR 2 million. The one-off costs in the current year will sum up to about EUR 16 million.
Without these one-off effects, our guidance for the adjusted EBIT margin would have been more in a corridor of about 2% to 3%. These numbers are unsatisfying, do not meet our expectations, and I'm fully aware of the challenges ahead. Let us now come to some examples from our step-up program. The first example comes from our business unit Industrial Applications in Europe. We've recently received an order in a market segment, which is new for our fluid products, battery cooling as part of battery energy storage systems.
Our customer is a pioneer in advanced battery energy storage systems and already built a more than 1.1 gigawatt wind and solar plant in Europe. The company required a top-notch solution for the cooling system encompassing pipes and connections. NORMA Group is providing a flexible pipe solution for the customer and also improving their assembly efficiency.
The next example comes from our M&A team. In order to bring our Quick Connector technology to a wider market, we have developed a comprehensive sales strategy. This comprises the Quick Connector content store, extensive customer engagement and operational competitiveness. The Quick Connector content store is showcasing the full range of innovations in Quick Connectors. The Quick Connector finder displays the entire range and also products in development, prototypes and customized solutions for our customers.
We ensure competitiveness in production and pricing with optimizing production capabilities and maintaining competitive pricing to meet customer demand using, for example, advanced data analytics and further tools. Let us now look at progress of our transformation. Until the end of 2028, we are targeting annual savings of up to EUR 42 million versus the baseline of 2024. We will reduce our global headcount by approximately 400, 70 of those in Germany. One key element of the transformation is the optimization of our global production footprint.
Starting in China, the site transfer from Wuxi to Changshu and Qingdao has been completed by end of September. The Wuxi facilities have been closed. We have also initiated the site transfer from Guangzhou to Changshu. The Guangzhou site will be closed by end of this year. With these 2 measures, we optimize our footprint in China to run our business with 2 sites. This enables more efficient production and logistics, lower rental costs and reduces administrational costs.
Looking at Australia, we have closed our Adelaide distribution center in order to optimize the local cost structure. These measures in China and Australia will contribute its annual savings of about EUR 1.8 million from 2026 to our overall saving targets. Headcount will be reduced by a total of 51 heads. In India, we have optimized our production layout and thus generated additional 700 square meters of production space to allow for the growing industrial market in India.
At the next page, I will give you a preview on the next steps that are planned in the Americas region. NORMA currently operates 3 manufacturing sites in Mexico in Juarez, Tijuana and Monterrey. The production for our metal-based products is currently based in Juarez as well as in Tijuana. In Juarez, we have recently rented a new production location, a modern site, which enables an optimized production infrastructure with streamlined logistics and production layouts.
In the first step, we will transfer the metal production from Tijuana to our new Juarez facility. In a second step, we will transfer the production equipment from the current Juarez location to the new production site in Juarez. We are forming a single and modern metal production plant in Juarez, Mexico. These measures will contribute with annual savings of approximately EUR 1.2 million from 2027 onwards.
Let us move on to share our true knows for NORMA. Our target vision for 2028, our true knows show double-digit margins. In 2025, our adjusted EBIT without one-off costs would level at about 2% to 3%. Until 2028, we are targeting annual savings of about EUR 38 million to EUR 42 million with our transformation. Additional EUR 10 million in savings are targeted to come from the Maintal operational recovery plan.
Further on, we reach for M&A opportunities to strengthen the industrial application business. So to summarize for NORMA, I'm aware of the challenges ahead and the current situation of NORMA, which is not satisfactory. Our focus and power is to build new NORMA as an industrial powerhouse characterized as follows: We will generate a strong market position in the industrial applications market, which offers high growth potential and really good margins. Our competitiveness in the area of mobility will be significantly enhanced by product innovation and cost effectiveness. Our lean and cost-adjusted organization will be focused on key tasks and fast decision-making. Our global production and distribution network will be streamlined to support our lean and cost-efficient approach whilst offering delivery, reliability and quality in all regions.
So with this, I say thank you very much for joining our call today, and we are looking forward to answering your questions now.
[Operator Instructions] And the first question is from Nikita Papaccio, Deutsche Bank.
2. Question Answer
This is Nikita from Deutsche Bank. First, welcome, Birgit, to the company, looking really forward to work with you. Three questions from me, please. So first of all, congrats on your strong APAC margin. Could you explain what was the key driver here? And can we expect to be this the run rate going forward?
Second, I mean, we talked a bit about building blocks for 2025. Could you maybe elaborate what will drive Q4 here? And then the third question, I mean, we are seeing ongoing weakness in the EMEA mobility business. How would you tackle this weakness to see improvements here and to increase your margin?
Well, thank you, Nikita, for your questions. Well, strong APAC margin in discontinued business is clearly shown we are divesting water, and we had 2 entities in this APAC region, in particular, Kimplas, which were not that successful and therefore, the margin is uplifted. So that shows how strong our remain business, our new normal business and our core business is there. So yes, I expect the run rate like this, and I would even hope that when APAC is also be able to level up their sales a little bit that this can even improve.
Building blocks for Q4, that is an answer. Well, this -- everybody is asking themselves for the time being. I would say we are cautiously optimistic that we -- the business will develop like we expected. Why I'm saying that? At the end, we have still our -- we spoke about the cyber attack for a customer. This customer told us, okay, they might come back to usual business by 50%. So there is missing sales already, and that might stay the case for the remaining quarter.
We have things like Stellantis who were on hold in Europe. On the other hand, we know that Ford paused production because they have an aluminum supplier who was under fire. And there, we are also -- it looks that we might miss sales, which are significant. And well, chips, the chip crisis is discussed everywhere in the press. For the time being, it looks, I would say, a little bit more optimistic, but this I, as a financial guy, believe when the quarter is over. So at the end, I would say there are in the market clouds which we have to deal with. But I think it's well under control and whatever we can optimize there, we will do. Well, to be honest, I don't have your third question anymore in my head. Could you repeat that? EMEA? It was mobility.
It was about EMEA, yes.
Yes. So mobility and new energy in EMEA, that is our pain point. As said, we have this geopolitical issues here as well, combined with chip shortages, what can happen also the customers I spoke about are partially in EMEA. For sure, we have our operating problem in Maintal, but there, we are on a very good way to bring that back to due course. So that is, at the end, these pillars we have to drive, and we have to manage that cautiously and with the full attention of everybody.
And the next question is from Yasmin Steilen, Berenberg.
I have also 3, if I may. And the first one is for Birgit Seeger. First of all, many thanks for your introduction. It's highly appreciated. And I know it's far too early to discuss any NORMA specific topics. But I'm interested in your view on the light vehicle market in general, the speed of the transition from ICE-to-BEV and the change of the competitive landscape among the OEMs and the impact from China speed on the European suppliers? Or to put it the other way around, what are the biggest challenges for suppliers to be addressed in the future? That's my first question.
Then the second question is coming back to EMEA. Following the EMEA goodwill impairment on revised revenue assumptions in the EMEA region, could you please provide more color what was related to mobility and new energy? And was there also a proportion related to industrial applications? And do you still feel comfortable with the provisions booked to rightsize the cost structure in EMEA? And the last question on free cash flow. Could you provide a split between the continued and discontinued business regarding the EUR 59 million net operating cash flow and the EUR 30 million free cash flow?
So I will start with your first question. Thanks for this. I mean, yes, the changeover from ICE to eMobility is in full swing. As we all know, I would say it's with China's speed, as you clearly mentioned. And in NORMA, we are happy that we have our operations in China that we are consolidating as presented the 2 facilities. And with these 2 facilities, really with good efficient processes, we will harvest the benefits from the China business. There's very good and solid business for NORMA in China already, and we will further build on this and grow this business.
Yes, around the world, we need to adapt to the China's speed, and it's really interesting what we see in this market ongoing, and we will also learn to certain time from China how to run this business. And this is also for me, a task to work with team NORMA and I see big potential here that we are very competitive globally for the regions and also doing this with China speed. So I hand over for the next question to Annette.
Yes. Thank you. EMEA goodwill is the question. So at the end, the impairment of EMEA goodwill is clearly due to, I would say, subdued expectations concerning M&E sales in the outer years. So that is what we see in the market, that is what we hear from customers and what we share with, I would say, developments in the market. It is not at all on any kind of industrial business. Do I feel well with our cost package, what we currently communicated for restructuring and so on?
Yes, I would say I feel well with this. You will hear about that more in the course of the year. We and then -- for what we know and what is necessary currently, we feel well. A net cash flow split, that is too early, to be honest. So this -- we will provide once cash flows of all these businesses are there. But at the end, a split between water and discontinued is not what makes sense for the time being. So I ask a bit for patience on that.
[Operator Instructions] And the next question is from Marc-René Tonn, Warburg Research.
Basically, also 3. First one would be on the margin development in the third quarter compared to the 9-month period. I think you are at least sequentially improving in all 3 regions. Basically, to give you some insight, is this more like that there is, let's say, a lower amount of non-adjusted extra costs in the third quarter? Or is it, let's say, more a positive impact already from the earnings enhancement measures you have implemented, which is supporting this development in the third quarter?
Second question would be going a bit into 2026, and I know it's still early and so much uncertainty going on. But when you look at the building blocks for profitability going into next year, and you already said, let's say, 2% to 3% margin this year when adjusting for the non-adjusted extra cost. Would it be right to assume for next year EUR 10 million tailwind from the transformation program compared to this year and another EUR 10 million from the Maintal operation improvement besides, let's say, the special burden no longer being there. So that would give us, let's say, some 4% to 5%, broadly speaking, for next year.
And then, let's say, nobody really knows what will happen to the top line. But let's say, as a baseline on the same amount of revenues, would that be, let's say, the magnitude to think about in terms of EBIT margin for next year? And the third question would be regarding the net cash position after the settlement of the deal. When we look at, let's say, the cash flow projection for this year, you'll probably end up with EUR 70 million net cash after the sales. Is this figure correct? That would be the first question. And secondly, depending on when you can eventually sign and then finally close the deal, what would be a timing for -- and let's say, the possibilities also legally for dividends and share buybacks? How should we think about this going forward when it comes to shareholder returns?
Yes. Thank you, Marc-René, for your question. So first of all, margin Q3, and you're fully right, that is sequentially better, and that is because we are slightly improving in business. Clearly, it's also the first improvement or the improvements in Maintal. So we are on track there. That is indeed -- there has nothing to do with lower amount of adjustment or whatever. I think we make our adjustments very transparent so that you can follow them up. And therefore, it's a kind of sequential cautious improving. Let's keep it like this.
Building blocks for '26 -- the building blocks for '26 onwards. So first of all, you mentioned roughly EUR 10 million transformation program improvement. That is not unrealistic. So there I would make a tick mark behind it. Where I can't agree is on the EUR 10 million Maintal improvement. So if we go through the slides, the EUR 10 million Maintal improvements are promised up, they're standing following. So this we expect until the end of the transformation program until '28. So therefore, this is a longer course.
You referred to EUR 60 million net cash projection. This I cannot really follow up because finally, we always have to differentiate. So as we expect the signing in Q1 -- the closing in Q1, we will not get the proceeds earlier. So there will not be -- I don't expect a cash in before the end of the year, pretty clear about that. So I expect a closing in Q1, and as soon as we are in the hand of these proceeds, we already prepare our structures and whatever. And then for sure, we speak about the timing of share buyback and whatever. But one story is for sure, we will not keep the money decades on our accounts.
I think, as was just referring not to the figure at the year-end, but after the closing and after you receive the money, but then you should be, let's say, given that you will basically be, let's say, net cash neutral plus the EUR 70 million, which you set aside for, or which you, let's say, set aside for M&A longer term when we take the... Put it, differently, you're expecting....
I know what you mean, but there I would propose that either we and together with Sebastian speak separately because we have -- cash is always a year-to-date figure, and there is a year-end in between. So it's not a figure which is piling up. So let's speak about that separately and then we can align our views on that.
As there are no further questions from the audience, I'd like to hand the floor back to Birgit Seeger for closing remarks.
Thanks so much for the audience, and thanks to give me the chance to onboard at NORMA Group. I'm delighted to be here. We all know that the results are really challenging in a challenging market environment. As we have presented, we have a clear plan ahead, and I can say team NORMA is fully behind this and is fully supporting this, and we will make the industrial powerhouse happen. And thanks for listening, and thanks for your question. Looking forward to meet many of you and to collaborate with you.
NORMA SE — Q3 2025 Earnings Call
Financial data from NORMA SE
Revenue
Revenue is the sum of all sales generated by a company, e.g. for its products or services.
Revenue (TTM) metric explainedDirect Costs
Direct costs are the costs incurred directly in connection with the manufacture of the product or service.
Gross Profit
Gross Profit indicates how much of the revenue remains in the company after deducting direct production costs. If the percentage share of sales is calculated, this is referred to as the gross margin.
Gross Profit metric explainedSelling and Administrative Expenses
Selling, general and administrative expenses (SG&A) include all expenses for marketing and sales as well as the general administration of the company.
Research and Development Expense
Research and development costs (R&D) provide information on how much the company invests in the research and development of its products. The costs are particularly interesting as a percentage of revenue and in comparison to direct competitors.
EBITDA
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is the company's earnings before interest, taxes, depreciation and amortization. The EBITDA margin is calculated as a percentage of sales.
Depreciation and Amortization
Depreciation represents reductions in the value of the company's assets (e.g. due to wear and tear on machinery).
EBIT (Operating Income)
EBIT (Earnings Before Interest and Taxes) is the company's profit before interest and taxes, also known as the operating income. The EBIT Margin is calculated as a percentage of sales at
.
Net Profit
Net Profit represents the profit or loss after deduction of all costs.
Net Profit metric explainedStocksGuide Premium
| Jun '26 |
+/-
%
|
||
| Revenue | 808 808 |
28%
28%
100%
|
|
| - Direct Costs | 354 354 |
24%
24%
44%
|
|
| Gross Profit | 454 454 |
30%
30%
56%
|
|
| - Selling and Administrative Expenses | 330 330 |
13%
13%
41%
|
|
| - Research and Development Expense | - - |
-
-
|
|
| EBITDA | 55 55 |
58%
58%
7%
|
|
| - Depreciation and Amortization | 52 52 |
44%
44%
6%
|
|
| EBIT (Operating Income) EBIT | 3.15 3.15 |
92%
92%
0%
|
|
| Net Profit | 228 228 |
22,245%
22,245%
28%
|
|
In millions EUR.
Don't miss a Thing! We will send you all news about NORMA SE directly to your mailbox free of charge.
If you wish, we will send you an e-mail every morning with news on stocks of your portfolios.
NORMA SE Stock News
Company Profile
NORMA Group SE engages in the provision of engineered joining technology solutions. Its product portfolio includes quick connectors, hose clamps, retaining clamps and pipe couplings. The company was founded by Berthold Hummel and Giovanni Russo on February 21, 2006 and is headquartered in Maintal, Germany.
StocksGuide Premium
| Head office | Germany |
| CEO | Mark Wilhelms |
| Employees | 4,687 |
| Founded | 2006 |
| Website | www.normagroup.com |


