Norma Group (NOEJ) Strategy update summary
Event summary combining transcript, slides, and related documents.
Strategy update summary
20 Oct, 2026Financial targets through 2031
FY26–31 targets: net sales CAGR of 1%–3%, adjusted EBIT margin above 10% and cash conversion above 70%.
Targets assume standalone organic development, comparable or stable FX, stable geopolitical and energy/raw-material conditions, and continued personnel-cost inflation; FY31 CapEx below 5% of net sales and cash taxes ~25% of adjusted EBT.
Cash conversion is free cash flow divided by adjusted EBIT; disciplined working capital and CapEx support the target.
Midterm ROCE ambition is above WACC; net debt / adjusted EBITDA target is up to 1.5x.
Business and market priorities
Mobility & New Energy is positioned as a resilient core with margin-improvement potential; Industry Applications is the profitable organic-growth business. The two represented ~70% and ~30% of 2025 net sales, respectively.
Current sales mix is 50% passenger vehicles, 20% commercial vehicles and 30% Industry Applications; IA is expected to increase to 36%–38% or more of sales.
IA focus-industry addressable markets are expected to grow ~12% annually in 2026–31, versus ~3% for the base business; focus industries are expected to rise from 25% of IA sales in 2026 to 34% in 2031.
Mobility & New Energy addressable markets are projected to grow ~1% p.a. for passenger vehicles and ~2% for commercial vehicles; content is comparable in ICE and BEV applications, with added hybrid potential.
Growth applications include data centers, battery energy storage, heat pumps and household appliances, building on existing engineering capabilities and capacity.
Commercial execution and products
Sales Push targets profitable volume growth, improved mix and pricing, customer penetration, channel expansion and stronger application-led solutions.
Mobility & New Energy recorded €157m cumulative lifetime sales wins in 9M 2026, up 45% YoY; wins comprised 80% renewals and 20% new business.
A EUR 157m lifetime passenger-vehicle program was won profitably using existing capacity, with 80% renewal and 20% growth; it was the largest PV program won to date and allocated to one Serbian plant.
Dry Break Valve technology transferred from automotive to BESS, displacing a competitor; 2026 serial orders accelerated implementation from January 2027 to August 2026.
Product development includes metal and all-plastic universal quick disconnects for data centers and a plastic battery-cooling system targeting 50% lower weight and 20% better cost than metal systems.
Latest events from Norma Group
- Profitability surged in Q2 2026, with strong liquidity and major new orders; outlook confirmed.NOEJ
Q2 2026 - Profitability rose, debt repaid, and 2026 guidance confirmed after strategic divestment.NOEJ
Q1 2026 - Divestment of Water Management enabled a net debt-free position and major shareholder returns for 2026.NOEJ
Q4 2025 - Leadership change accelerates transformation; Water Management sale and M&A to proceed in parallel.NOEJ
Investor update - Profitability and sales fell, but divestment proceeds enabled debt reduction and shareholder returns.NOEJ
Q4 2025 TU - Q2 2025 sales fell 5.2% but margins improved as transformation and cost-saving efforts advanced.NOEJ
Q2 2025 - Sales declined 7.9% in Q3 2024, but margins and cash flow held up due to efficiency gains.NOEJ
Q3 2024 - Sales fell 5.5% in Q2, but margins and cash flow improved on efficiency gains.NOEJ
Q2 2024 - Sales fell 5.5% in 2024, but margins, cash flow, and strategic focus improved.NOEJ
Q4 2024