Norma Group (NOEJ) Q3 2024 earnings summary

Executive summary

• Q3 2024 net sales were EUR 273.6 million, down 7.9% year-over-year due to a volatile market environment and weak demand, especially in automotive and infrastructure sectors, partially offset by efficiency measures.

• Americas and Water Management segments remained solid, while EMEA and APAC experienced significant volume declines, especially in Mobility & New Energy.

• The Step-up/Step Up program drove operational improvements, cost reductions, and margin resilience despite lower sales, with over 1,800 initiatives and two-thirds implemented.

• Adjusted EBIT for Q3 was EUR 20.9 million (7.7% margin), down from EUR 24.8 million (8.3%) last year; net operating cash flow at EUR 28.2 million versus EUR 38.6 million a year ago.

• Consolidated sales for Q1–Q3 2024 were EUR 888.4 million, down 5.1% year-over-year, mainly due to weaker demand in key industries and negative currency effects, partially offset by the Teco acquisition.

Financial highlights

• Q3 2024 revenue was EUR 273.6 million, a 7.9% decline compared to Q3 2023; adjusted EBIT was EUR 20.9 million (7.7% margin); adjusted EBITDA for Q3 was EUR 35.3 million (12.9% margin).

• Net sales for the first nine months declined 5.1% year-over-year, mainly due to a weak Q3.

• Net operating cash flow improved to EUR 69.4 million for Q1–Q3, with Q3 at EUR 28.2 million; supply chain financing reduced by EUR 10 million year-over-year.

• Equity ratio improved to 48.1% as of September 2024, the highest since IPO.

• Net financial debt decreased by 2.2% since end-2023 and by 15.6% year-over-year; leverage reduced from 2.6x to 2.2x.

Outlook and guidance

• Full-year 2024 group sales expected at around EUR 1.2 billion, at the lower end of previous guidance; EMEA: EUR 480–500 million, Americas: EUR 540–550 million, APAC: EUR 140–150 million.

• Adjusted EBIT margin expected to reach the lower end of guidance at around 8%; net operating cash flow projected at EUR 80–110 million.

• 2025 is expected to be only slightly better than 2024, with a conservative outlook.

• CO2 emissions (Scope 1 and 2) targeted below 9,600 metric tons.

• Step Up program aims for a midterm sales mix shift to 60% Water Management & Industry Applications and 40% Mobility & New Energy.