Norma Group (NOEJ) Q2 2025 earnings summary

Executive summary

• Q2 2025 net sales were EUR 290.4 million, down 5.2% year-over-year, mainly due to weaker demand and negative currency effects; adjusted EBIT margin was 8.1%, a significant improvement from Q1's 3.6%.

• H1 2025 revenue declined 6.5% year-over-year to €574.6 million, with adjusted EBIT margin at 5.9% for H1 2025, down from 8.4% in H1 2024.

• Net operating cash flow was EUR 31.6 million in Q2 and €34.7 million for H1, both below prior-year levels but supported by improved working capital management.

• Transformation program launched, targeting EUR 82.5–91.5 million in savings by 2028, with one-time costs of EUR 54–61 million.

• Water Management business sale is in progress, with proceeds intended for deleveraging, M&A, and shareholder returns.

Financial highlights

• Q2 2025 net sales: EUR 290.4 million (Q2 2024: EUR 306.3 million); adjusted EBIT: EUR 23.4 million (Q2 2024: EUR 26.1 million); margin at 8.1%.

• H1 2025 adjusted EBIT: €33.7 million (H1 2024: €51.8 million); margin: 5.9%.

• Adjusted EPS: EUR 0.33 in Q2 2025 (Q2 2024: EUR 0.34); reported EPS: EUR 0.16 in Q2 2025 (Q2 2024: EUR 0.20).

• Net debt increased to €334.6 million (Dec 31, 2024: €329.2 million); equity ratio at 47.9% (Dec 31, 2024: 50.2%).

• Net operating cash flow: EUR 31.6 million in Q2 2025 (Q2 2024: EUR 43.6 million); H1 2025: €34.7 million (H1 2024: €41.2 million).

Outlook and guidance

• Full-year 2025 sales expected in the range of EUR/€1.1–1.2 billion, with adjusted EBIT margin between 6% and 8%.

• Net operating cash flow forecasted at EUR/€75–95 million; management expects continued volatility but anticipates a revival in select segments in H2.

• Double-digit group EBIT margin remains a midterm target, with transformation measures expected to drive margin improvement.

• Target to avoid 1,000 tCO2eq emissions (Scope 1 & 2) in 2025.

• Guidance incorporates known trade policy measures as of March 2025; further impacts from tariffs remain uncertain.