NORMA Group ETR: NOEJ reported higher third-quarter sales and a more than doubling of adjusted EBIT, as the company cited growth in its Industry Applications unit and savings from its NewNORMA transformation program. Management reaffirmed its full-year 2026 outlook and said it does not currently expect an adjusted EBIT loss in the fourth quarter.
Third-quarter net sales rose 5.2% on a reported basis to €207.8 million, including a 4.2% increase at comparable exchange rates. Adjusted EBIT increased 105% year over year to €7.8 million, lifting the adjusted EBIT margin to 3.7% from 1.9% a year earlier.
“We see our structural cost measures in our transformation programs ... are showing results,” Chief Executive Officer Birgit Seeger said during the company’s third-quarter results call. The company said its Wave 1 transformation program contributed €5.3 million to EBIT in the quarter and €11.4 million in the first nine months.
Industry Applications Leads Sales Growth
Industry Applications sales increased 11.3% at comparable exchange rates and 12.4% on a reported basis to €70.2 million. The growth reflected a €7 million positive contribution from volume and pricing, according to Group Chief Financial Officer Okan Celiker.
Mobility & New Energy returned to modest growth, with sales rising 0.9% at comparable exchange rates and 1.9% as reported to €137.6 million. Positive developments in the Americas and Europe, Middle East and Africa were partly offset by lower sales in Asia-Pacific, where automotive demand in China remained challenging.
The company highlighted several commercial wins during the quarter. In the Americas, it received a nomination to supply components for diesel particulate filters used in construction equipment. In Europe, it won a project involving engines for off-road and agricultural machinery. In China, the company received a nomination from a local original equipment manufacturer for a cooling-system connector, with production scheduled to begin in the following quarter.
Seeger also pointed to the company’s dry-break valve technology for battery energy storage systems. She said the customer requested an accelerated launch, which NORMA Group was able to bring forward by six months, resulting in earlier revenue.
Regional Profitability Improves Outside APAC
The Americas posted the strongest regional sales growth, with revenue up 13% at comparable exchange rates and 14.8% on a reported basis to €76.1 million. The region’s adjusted EBIT margin improved by 3.9 percentage points to 8.4%, supported by higher volumes and cost-structure improvements.
EMEA sales rose 2.4% at comparable exchange rates and 2.1% as reported. Its adjusted EBIT margin improved to 2.7% from negative 0.9% in the prior-year quarter, aided by improved costs and the absence of temporary additional expenses incurred a year earlier.
APAC sales declined 9% at comparable exchange rates, primarily because of weak automotive demand in China. The region’s adjusted EBIT margin declined 1.2 percentage points to negative 9.1%.
Responding to an analyst question on China, Seeger said NORMA Group had expanded its local team and sent experienced employees to the country. She said the recent Chinese customer nomination demonstrated the company’s efforts to improve its performance in the Chinese and broader APAC markets.
Costs and Cash Flow
Celiker said higher volumes and pricing added €3.8 million to third-quarter adjusted EBIT. This was partly offset by €2.9 million in negative material-cost effects. Personnel costs and other operating expenses provided a combined €2.3 million positive contribution, while depreciation and amortization and foreign-exchange effects also supported the result.
During the question-and-answer session, Celiker said material costs remained pressured by tariffs in the Americas and by higher gasoline prices affecting EMEA amid the Iran and Ukraine wars. He said the company was working on countermeasures for the fourth quarter and 2027.
Net operating cash flow was positive at €10.2 million in the quarter. The calculation began with adjusted EBITDA of €18.8 million and included a €3 million reduction related to the supply-chain financing program, a €0.8 million negative change in other trade working-capital items, and €4.8 million in capital expenditures.
For the first nine months, sales totaled €628.3 million, down 0.6% on a reported basis but up 0.9% at comparable exchange rates. Adjusted EBIT reached €21.7 million, up 269% from the prior year, while the adjusted EBIT margin improved 2.5 percentage points to 3.5%. Net operating cash flow for the nine-month period was negative €2.9 million, with management citing effects connected with the divestment of its Water Management business.
Outlook and Management Transition
NORMA Group reaffirmed its 2026 guidance for comparable-currency sales growth of 0% to 2%, an adjusted EBIT margin of 2% to 4%, and net operating cash flow of €10 million to €20 million.
Celiker said the company expects roughly €4 million of additional Wave 1 savings in the fourth quarter, which would bring the program’s incremental savings for the year to the previously communicated €15 million. Management also said it was targeting an accrual in the fourth quarter for Wave 2 and potentially for EMEA footprint measures.
Asked about the implied fourth-quarter margin, Seeger said management did not currently see a loss for the period, though the quarter is typically weaker because of seasonal factors.
The company also reiterated its 2031 ambitions, including annual sales growth of 1% to 3%, an adjusted EBIT margin above 10%, and cash conversion above 70%.
Separately, Seeger said the supervisory board had appointed Tobias Bichler as NORMA Group’s next CFO, effective no later than April 1, 2027. Celiker will remain in his role until Bichler joins and will support the transition, she said.
About NORMA Group (ETR:NOEJ)
NORMA Group SE, together with its subsidiaries, manufactures and sells engineered joining technology solutions in Europe, the Middle East, Africa, the Americas, and the Asia-Pacific. The company provides quick connectors, hose clamps, retaining clamps, and pipe couplings. It also offers various products for stormwater management, landscape irrigation, and joining components for water infrastructure solutions. The company sells its products to distributors, original equipment manufacturer aftermarket customers, technical wholesalers, and hardware stores under the ABA, Breeze, Clamp-All, CONNECTORS, FISH, Gemi, Kimplas, NDS, NORMA, Raindrip, R.G.RAY, Serflex, TORCA, and TRUSTLENE brand names.
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