Norma Group (NOEJ) Q4 2025 earnings summary

Executive summary

• Completed divestment of Water Management business, generating EUR 650 million in net proceeds, enabling a strategic reset, shareholder returns, and the formation of NewNORMA.

• Entered 2026 net debt-free following the Water Management sale and shareholder distributions.

• Executed a public share buyback, returning approximately EUR 52.9 million to shareholders, with a planned capital reduction totaling up to EUR 260 million.

• Achieved 2025 guidance despite challenging market conditions and operational headwinds, with a sharpened focus on becoming an industrial powerhouse for connecting solutions.

• Leadership change: Annette Stieve stepped down as CFO, replaced on an interim basis by Okan Celiker.

Financial highlights

• Net sales for 2025 were EUR 821.7 million, down 6.8% year-over-year, mainly due to lower volumes, price impacts, and negative currency effects.

• Adjusted EBIT was EUR 6.3 million, with a margin of 0.8%, both significantly lower year-over-year.

• Net operating cash flow was EUR 95.8 million, supported by disciplined CapEx, but down from EUR 105.4 million.

• Adjusted net income for continuing and discontinued operations was EUR 14.3 million, with adjusted EPS at EUR 0.45.

• Dividend proposal of EUR 0.14 per share, representing a 31% payout ratio of adjusted group annual earnings.

Outlook and guidance

• For 2026, net sales are expected to grow 0%-2%, with an adjusted EBIT margin of 2%-4%.

• Net operating cash flow is forecasted at EUR 10-20 million.

• Transformation costs of approximately EUR 24 million expected in 2026, with EUR 15–20 million cash outflow.

• Dividend policy remains at 30–35% of adjusted group annual earnings, subject to net profit.

• Strategy update and midterm targets to be provided in H2 2026.