Norma Group closed out 2025 having met the targets it set at the start of the year, posting full-year sales of €822 million and an adjusted EBIT margin of 0.8%. The company also reported net operating cash flow of €96 million for the year.
For the fourth quarter, Norma recorded sales that came in 2% ahead of consensus estimates. Adjusted EBIT for Q4 was reported at 0.2%, compared with a consensus expectation of -2%. Despite the top-line outperformance and margin improvement versus expectations, the company said underlying earnings were pressured by weaker demand and elevated costs.
Management attributed the decline in earnings to a combination of softer end-market demand, higher personnel and logistics costs, and unfavorable currency movements. Earlier in the year, Norma had recognised a non-cash impairment of €102 million related to certain EMEA investments, which reduced reported earnings but did not affect cash flows.
In February, Norma completed the disposal of its Water Management business, generating net proceeds of €650 million. The company laid out plans to use those proceeds to reduce its debt burden, strengthen its remaining core industrial solutions activities and return capital to shareholders - with up to €260 million earmarked for distributions.
Following the divestment, Norma describes itself as a focused, debt-free industrial solutions provider. The company said initial efficiency measures tied to its new strategic direction have produced early savings, helping to offset some of the margin pressure from cost inflation and lower volumes.
Norma signalled that further guidance will be provided with its annual report on March 31. Current market consensus anticipates 2026 sales of €879 million and expects the adjusted EBIT margin to move toward 3% in the year ahead.
The company’s 2025 results and the Water Management sale reshape its balance sheet and strategic profile - reducing financial leverage while concentrating operations on its core industrial solutions activities. Management will present its outlook and any additional details on capital allocation and cost measures at the end of March.