Norma Group (NOEJ) Q1 2025 earnings summary

Executive summary

• Q1 2025 net sales declined 7.9% year-over-year to EUR 284.2 million, with all regions affected by weak demand and market volatility.

• Adjusted EBIT dropped to EUR 10.3 million, with margin at 3.6%, mainly due to lower sales and higher personnel costs.

• Transformation program initiated to drive efficiency, including the sale of the water business and organizational restructuring, aiming for double-digit EBIT margins by 2028.

• Management confirmed the full-year 2025 outlook, expecting challenging conditions but anticipating a business revival in H2.

• Net profit for Q1 2025 was negative at EUR -3.9 million; adjusted net profit was EUR -0.3 million.

Financial highlights

• Q1 2025 revenue was EUR 284.2 million, down 7.9% year-over-year, with positive currency and minor acquisition effects.

• Adjusted EBIT was EUR 10.3 million (Q1 2024: EUR 25.7 million); margin at 3.6%.

• Adjusted earnings per share were EUR -0.01, mainly due to lower EBIT and a high tax rate.

• Net operating cash flow improved to EUR 3.1 million from EUR -2.3 million in Q1 2024.

• Net debt rose to EUR 337.6 million (Dec 31, 2024: EUR 329.2 million); equity ratio at 49.3%.

Outlook and guidance

• FY 2025 sales expected in the range of EUR 1.1–1.2 billion, with adjusted EBIT margin forecasted at 6–8%.

• Net operating cash flow projected at EUR 75–95 million; transformation program to be fully implemented by 2028, targeting double-digit EBIT margins by early 2029.

• Ongoing improvements anticipated from operational efficiency and cost-saving measures.

• Target to avoid 1,000 tons of CO2 emissions in 2025.

• Transformation costs and one-off expenses expected to impact FY 2025 and 2026 results.