Germany · Delayed Price · Currency is EUR NORMA Group SE Earnings Call Transcripts
Fiscal Year 2026
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Leadership changes aim to accelerate transformation, with a continued focus on Industry Applications and Mobility. The Water Management divestment and M&A activities will proceed in parallel, and the CEO search targets candidates with industrial and transformation expertise.
Fiscal Year 2025
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2025 saw a challenging year with lower sales and margins, but the divestment of the Water Management business enabled a net debt-free position and significant shareholder returns. 2026 is positioned as a reset year, with modest growth and margin improvement expected, and a strategic focus on operational efficiency and new markets.
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Q3 2025 saw a 4.3% sales decline and lower margins, mainly due to currency effects and mobility weakness. The water management divestment will fund debt reduction, shareholder returns, and growth, while transformation initiatives target double-digit margins by 2028.
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Q2 2025 saw improved margins and stable adjusted net income despite a 5.2% sales decline, with transformation initiatives and cost savings underway. The outlook remains cautious but anticipates H2 revival in select segments, while the water management sale will fund deleveraging, M&A, and shareholder returns.
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Q1 2025 saw lower sales and margins due to weak market conditions, especially in automotive and new mobility. Transformation efforts, including the water business sale and operational restructuring, aim for double-digit EBIT margins by 2028. Positive cash flow and improved working capital were achieved.
Fiscal Year 2024
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2024 saw a 5.5% sales decline but improved margins and cash flow, driven by cost reductions and operational efficiencies. The company is divesting its water management business, targeting double-digit EBIT margins, and expects a challenging first half of 2025 with potential recovery later in the year.
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Q3 2024 saw a 7.9% sales decline year-over-year, but margins held up due to cost reductions and efficiency gains. The Step-up program drove operational improvements, and full-year sales are expected at the lower end of guidance, with margin targets maintained despite ongoing market headwinds.
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Q2 2024 saw a 5.5% sales decline year-over-year, but margins and cash flow improved due to efficiency measures. Water management grew, while mobility and new energy lagged; Americas performed well, APAC struggled, and EMEA showed margin gains. Guidance remains at the lower end amid ongoing market headwinds.