Earnings, assets and financial position

The following explanations regarding special items, sales and earnings development, and segment reporting take into account the classification of the Water Management business unit as a “discontinued operation”⁴. Further information can be found in the NOTES.

 

Overall statement by the board of directors on business performance and the economic situation

In 2025, industrial companies worldwide once again faced a challenging environment. Geopolitical tensions, a more restrictive US tariff policy, and weak export performance noticeably impacted many sectors. At the same time, competitive pressure from China continued to intensify. While falling energy prices and lower interest rates had a stabilizing effect, they could only partially mitigate the existing uncertainties.

In this environment, NORMA Group's consolidated sales reached EUR 821.7 million in fiscal year 2025, falling 6.8% short of the comparable prior year (2024: EUR 881.8 million). The industries relevant to NORMA Group showed

⁴ Exceptions to this are indicated.

mixed performance: The Industry Applications segment recorded growth due to reallocations. In contrast, sales in the strategic business unit Mobility & New Energy were lower than in the previous year. This was due to the continued sluggish performance of the automotive industry in all three regions, as well as negative currency effects in the Americas and Asia-Pacific regions.

Adjusted operating profit – adjusted EBIT – fell short of the previous year's figure by 80.9% at EUR 6.3 million (2024: EUR 33.0 million). The adjusted EBIT margin developed within the forecast range published in September 2025 and was 0.8% (2024: 3.7%). Unadjusted, a loss of EUR 81.4 million was recorded for fiscal year 2025 (2024: profit of EUR 22.0 million). The EBIT margin was -9.9% (2024: 2.5%). The primary reason for the change in unadjusted EBIT and EBIT margin was a non-cash impairment charge of EUR 50.0 million for goodwill in the EMEA region as of September 30, 2025. This impairment charge resulted from revised sales assumptions for the EMEA region in the coming fiscal years. Furthermore, additional expenses related to the transformation initiated in 2025, along with persistently high personnel expenses, negatively impacted earnings.

Net operating cash flow reached EUR 95.8 million in the fiscal year, which, while below the previous year (2024: EUR 105.4 million), performed slightly better than expected overall. This positive result was primarily due to working capital management adjusted to business performance. In addition, more selective investment activity also contributed to the favorable development of operating net cash flow.

NORMA Group thus concluded fiscal year 2025 in line with the forecast issued in September 2025, despite the persistently challenging market environment and structural and organizational challenges. With the sale of its Water Management business unit, the Group has taken an important step towards its strategic focus. As expected, the transaction-related deconsolidation results in sales and earnings figures for the continuing operations being significantly lower than previously reported Group figures, since the contribution of the divested business unit is classified entirely as a discontinued operation in accordance with IFRS 5, and the comparative figures for the prior period have been adjusted accordingly. The new figures structurally reflect the actual economic situation of the focused core business, which is to be gradually expanded with the global transformation initiated in 2025.

 

Adjustments

For long-term comparison and a better understanding of business performance, NORMA Group adjusts its operating profit for certain expenses and income related to completed M&A transactions. Furthermore, since 2025, adjustments have been made for costs associated with the global transformation initiated in fiscal year 2025. This transformation program primarily resulted in expenses for severance payments related to restructuring measures, associated consulting fees, and expenses related to production relocations. These adjustments are made according to the management approach used in segment reporting. These expenses are presented in detail in the table on adjustments. Further information can be found in the NOTES.

In fiscal year 2025, adjustments totaling EUR 32.2 million (2024: EUR 0.0 million) were made to EBITDA (earnings before interest, taxes, depreciation, and amortization of property, plant, and equipment). These adjustments primarily comprised adjustments to employee benefit expenses (EUR 23.4 million in 2025) and material costs (EUR 4.6 million in 2025), as well as adjustments to other operating income and expenses (EUR 4.1 million in 2025). All of these effects are related to the global transformation that commenced in fiscal year 2025. Additionally, depreciation of property, plant, and equipment from purchase price allocations amounted to EUR 0.6 million in fiscal year 2025 (2024: EUR 0.6 million). In addition, amortization of intangible assets from purchase price allocations amounting to EUR 54.9 million (2024: EUR 10.3 million) was adjusted within EBIT. This primarily

includes a goodwill impairment charge of EUR 50.0 million in the EMEA region as of September 30, 2025. This impairment charge was mainly due to changes in sales assumptions for the EMEA region in the coming fiscal years. The impairment charge impacted net income but did not result in any cash outflow. NOTES

Any notional income taxes arising from the adjustments are calculated using the tax rates of the respective local companies concerned and are included in the adjusted after-tax result.

Table T019 shows the adjusted figures for fiscal years 2024 and 2025. Further information on the unadjusted figures can be found in the NOTES.

 

Earnings situation

 

Development of sales

 

Group sales

NORMA Group's consolidated sales totaled EUR 821.7 million in the 2025 fiscal year, falling short of the previous year (2024: EUR 881.8 million) by 6.8%. This figure includes negative currency effects (-2.1%).

NORMA Group's business performance in fiscal year 2025 was impacted by market and environmental volatility. This particularly affected the volume business in the Mobility & New Energy segment, where all three regional segments – EMEA, Americas, and Asia-Pacific – recorded significantly lower sales. This was due to the highly fluctuating demand within the automotive and commercial vehicle industries caused by the uncertain external environment. In contrast, sales in the Industry Applications segment grew, driven by the reallocation of sales from the Mobility & New Energy segment to Industry Applications in 2025. The internal reallocation of the Australian business following the sale of the Water Management business also contributed to the increased sales in Industry Applications in 2025.

 

Industry Applications: Sales increases by a total of 8.3% in 2025 due to reallocation

Sales in the Industry Applications segment amounted to EUR 251.7 million in fiscal year 2025, exceeding the previous year's figure (2024: EUR 232.4 million) by a total of 8.3%. This figure also includes the positive contribution from the reclassification, effective in the first quarter of 2025, of customer business that had previously been assigned to the strategic business unit Mobility & New Energy. This reclassification primarily affected sales from the customer application areas of construction and agricultural machinery as well as stationary energy storage. Furthermore, following the signing of the agreement to sell the Water Management business, the activities in Australia that were not included in the sale were also reassigned to the Industry Applications segment. These activities primarily involve business with joining technologies for industrial applications, which remained within NORMA Group. Adjusted for reallocation and reassignment, and excluding currency effects (-2.6%), sales declined by 3.8% in 2025. This was primarily due to lower sales volume in the EMEA region resulting from weak market demand. Additionally, sales performance was impacted by logistics delays at the beginning of the year related to the implementation of an ERP system at a German location. In contrast, the Industry Applications division in the Asia-Pacific region showed encouraging volume growth.

 

Mobility & New Energy: Sales below previous year due to market uncertainties and volatile customer demand

The Mobility & New Energy division generated sales of EUR 570.0 million in fiscal year 2025 – a decrease of 12.2% compared to the previous year (2024: EUR 649.4 million). This development can be attributed to the following factors: Firstly, weak global demand in all three regional segments resulted in a decline in sales volume, which, coupled with a slight decrease in the achieved price level, reduced sales (-5.1%). Contributing factors included persistently volatile market conditions and uncertainties – for example, related to the impact of global trade and tariff policies, as well as specific customer-related issues, such as a temporary reduction in demand due to a customer halting deliveries as a result of a cyberattack. Secondly, the reclassification of customer businesses in the construction and agricultural machinery sector, as well as stationary energy storage, into the Industry Applications

division at the beginning of 2025 reduced Mobility & New Energy sales by EUR 34.1 million. Currency effects also had a slightly negative impact of 1.9%.

 

Development of earnings

 

(Adjusted) EBIT

The operating result (earnings before interest and taxes, EBIT) amounted to EUR -81.4 million in fiscal year 2025, significantly below the previous year's figure (2024: EUR 22.0 million). The EBIT margin was -9.9% (2024: 2.5%).

Adjustments were made to the results for fiscal year 2025, which included the impairment loss requirement for goodwill in the EMEA region as of September 30, 2025, additional expenses for the global transformation initiated in 2025, and amortization from purchase price allocations.

Adjusted EBIT decreased by 80.9% to EUR 6.3 million in the current fiscal year, compared to EUR 33.0 million in the previous year. The adjusted EBIT margin was 0.8% (2024: 3.7%). Adjusted EBIT in fiscal year 2025 was primarily impacted by the decline in sales. Employee benefit expenses, which remained at a high level compared to the previous year, also negatively affected the adjusted EBIT margin. Conversely, the higher adjusted gross margin compared to the previous year had a positive effect on adjusted EBIT.

 

Cost of materials ratio and gross margin

In fiscal year 2025, the globally positioned purchasing organization of NORMA Group was able to achieve partial cost reductions. In particular, costs for certain raw materials and for energy declined again. PURCHASING AND SUPPLIER MANAGEMENT

Against this background, material costs in the current reporting year amounted to EUR 375.2 million, a decrease of 7.2% compared to the previous year (2024: EUR 404.5 million). With material costs being disproportionately lower than sales, the material cost ratio (material costs as a percentage of revenue) improved to 45.7% (2024: 45.9%).

The reduction in inventories of finished and unfinished goods in fiscal year 2025 (EUR 0.2 million) had only a marginal impact on the material cost ratio. In contrast, the previous year had included an increase in inventories of EUR 1.6 million. The material cost ratio as a percentage of total output (sales revenue plus changes in inventories and other capitalized own work) was 45.5% in fiscal year 2025, the same level as in the previous year (2024: 45.5%).

Within the cost of materials for fiscal year 2025, expenses of EUR 4.6 million related to the transformation initiated in 2025 were adjusted. Adjusted cost of materials decreased by 8.4% to EUR 370.6 million (2024: EUR 404.5 million). The adjusted cost of materials ratio (cost of materials as a percentage of revenue) amounted to 45.1% in fiscal year 2025, a slight improvement compared to the previous year (2024: 45.9%). The adjusted cost of materials ratio as a percentage of total output (sales revenue plus changes in inventories and other capitalized own work) was also lower in fiscal year 2025 at 44.9% (2024: 45.5%).

Gross profit for fiscal year 2025 was EUR 449.9 million, representing a decrease of 7.1% compared to the previous year (2024: EUR 484.5 million). At 54.8%, the gross margin was 10 basis points lower than the previous year (2024: 54.9%).

Adjusted gross profit for fiscal year 2025 reached EUR 454.5 million, 6.2% below the previous year's figure (2024: EUR 484.5 million). The adjusted gross margin was 55.3% (2024: 54.9%). This development is primarily attributable to the disproportionately lower material costs compared to sales in the past fiscal year.

 

Personnel cost ratio

Personnel expenses in fiscal year 2025 amounted to EUR 293.2 million, 7.7% higher than the previous year (2024: EUR 272.3 million). Combined with significantly lower sales, this led to a noticeable increase in the personnel cost ratio (personnel expenses as a percentage of sales) to 35.7% (2024: 30.9%). This development is primarily due to additional personnel expenses of EUR 23.4 million incurred in the current reporting year in connection with the transformation initiated in 2025.

Adjusted personnel expenses for fiscal year 2025 amounted to EUR 269.8 million, representing a slight decrease (-0.9%) compared to the previous year (2024: EUR 272.3 million). The personnel cost ratio rose to 32.8% from 30.9% in the previous year. This increase is attributable to the fact that personnel expenses remained at a high level despite lower capacity utilization. This was due, among other things, to temporary inefficiencies at individual European locations. Additionally, fiscal year 2025 includes expenses related to the early departure of former CEO Guido Grandi, which was announced on February 17, 2025.

 

(Adjusted) other operating income and expenses

The balance of other operating income and expenses amounted to EUR -135.9 million in the fiscal year 2025 (2024: EUR -132.2 million).

Other operating expenses amounted to EUR 151.9 million in fiscal year 2025 (2024: EUR 151.5 million). These expenses primarily comprised costs for temporary workers and other personnel-related expenses, which decreased significantly compared to the previous year (2025: EUR 34.4 million; 2024: EUR 40.1 million). A large portion of other operating expenses was also attributable to IT and telecommunications (2025: EUR 25.6 million; 2024: EUR 27.2 million). Other significant portions of other operating expenses in 2025 were freight costs (2025: EUR 20.3 million; 2024: EUR 15.4 million), which increased due to temporary additional expenses related to the implementation of a new ERP system at the Maintal site at the beginning of 2025. While regular freight costs were

slightly below the previous year's level (a decrease of EUR 0.4 million), special freight costs rose compared to the same period of the previous year (an increase of EUR 5.2 million). Expenses for consulting and marketing (2025: EUR 17.9 million; 2024: EUR 13.8 million) also increased significantly during the fiscal year. NOTES

Other operating income in fiscal year 2025 primarily includes currency gains from operating activities resulting from currency fluctuations in Europe. This item also includes income from supplier refunds and reimbursements of customs duties. The reversal of liabilities and unused provisions also contributed to additional other income. NOTES

In fiscal year 2025, other operating income and expenses were adjusted by EUR 4.1 million related to the transformation initiated in 2025. The adjusted balance of other operating income and expenses reached EUR -131.8 million in fiscal year 2025 (2024: EUR -132.2 million). This represents an improvement of 0.4% compared to the previous year. Relative to the declining sales, the balance of other operating income and expenses amounted to 16.0% (2024: 15.0%).

 

Financial result

In fiscal year 2025, the financial result amounted to EUR -18.1 million, a slight improvement compared to the previous year (2024: EUR -22.6 million). A significantly lower net interest expense (2025: EUR 16.5 million; 2024: EUR 20.5 million) made a substantial contribution to this improvement. This decrease resulted primarily from lower interest expenses on liabilities to credit institutions, due to the lower interest rate environment compared to the previous year. Currency effects also had a slightly mitigating effect. Further positive effects resulted from the scheduled repayment of promissory note loans and the unscheduled repayment of syndicated loans, which had already taken place in fiscal year 2024. In addition, net currency losses from financing activities were considerably higher compared to the previous year (2025: EUR 0.6 million; 2024: EUR 0.3 million). NOTES

 

(Adjusted) income taxes

In fiscal year 2025, the continuing operations incurred a tax expense of EUR 9.1 million (2024: tax expense of EUR 14.1 million). The pre-tax result was EUR -99.5 million (2024: EUR -0.5 million). The reason for the tax expense despite a loss before income taxes is the non-recognition of deferred tax assets on current losses and temporary differences – particularly within the German tax group.

The adjusted tax rate for fiscal year 2025 was 161.8% (2024: -220.5%). This resulted from adjusted tax expense of EUR 19.1 million (2024: tax expense of EUR 23.0 million) and adjusted pre-tax profit of EUR -11.8 million (2024: EUR 10.4 million).

 

(Adjusted) profit for the period and appropriation of profit

The net profit for continuing operations in the fiscal year 2025 fell significantly compared to the previous year (2024: -14.6 million) to EUR -108.6 million. Earnings per share for the current reporting year amounted to EUR -3.41 (2024: EUR -0.46). The main reason for the decline is the recognition of a non-cash goodwill impairment of EUR 50.0 million in the EMEA region from the third quarter of 2025, as well as expenses for the transformation projects (EUR 32.2 million) and the sale of the Water Management business unit (EUR 17.8 million).

Including the discontinued operation, the net profit for the period decreased from EUR 14.8 million in the previous year to EUR -81.7 million in the current reporting year. Earnings per share thus amounted to EUR -2.57 (2024: EUR 0.46).

The adjusted net profit for fiscal year 2025 was EUR -30.9 million, thus falling short of the figure for the previous year (2024: EUR -12.6 million). Based on a number of shares remaining unchanged from the previous year at 31,862,400, this results in adjusted earnings per share of EUR -0.97 after deducting the net loss for non-controlling interests (2024: EUR -0.40).

The Management Board and Supervisory Board will propose to the Annual General Meeting on July 1, 2026, that a dividend of EUR 4.5 million be distributed from the net profit of NORMA Group SE, amounting to EUR 10.0 million after the release of reserves. This corresponds to a dividend of EUR 0.14 per share entitled to dividends. The proposed payout ratio amounts to approximately 31.1% of the adjusted net profit for the 2025 fiscal year and is thus within the range of approximately 30% to 35% in accordance with NORMA Group's sustainable dividend strategy.

 

Development of sales and earnings in the segments

Since the signing of the contract for the sale of the Water Management unit, the Water Management business unit is no longer proactively managed by Management. Management of Group’s operations and published guidance relate exclusively to the continuing business units. Therefore, all subsequent statements regarding the regional segments reflect this perspective.

 

EMEA

External sales in the EMEA region amounted to EUR 438.3 million in fiscal year 2025. This represents a decrease of 6.5% compared to the same period of the previous year (2024: EUR 468.9 million). Currency effects had virtually no impact on revenue in the current reporting period (-0.1%).

The decline in sales in the EMEA region was primarily due to a general market weakness. Against this backdrop, the automotive industry in particular exhibited continued reluctance to invest, resulting in lower and, in some cases, unpredictable demand from individual customers. Consequently, revenue in the Mobility & New Energy segment in fiscal year 2025, at EUR 312.8 million, was 11.8% below the previous year's level (2024: EUR 354.8 million). In contrast, revenue in the Industry Applications segment increased by 10.0% to EUR 125.5 million (2024: EUR 114.1 million). A somewhat weak distribution business was more than offset by the reallocation of revenue (EUR 19.4 million) from the Mobility & New Energy segment during the current year.

Overall, the share of the EMEA region in total sales remained unchanged at around 53% in fiscal year 2025 compared to the previous year (2024: 53%).

Adjusted EBIT in the region amounted to EUR -6.9 million in fiscal year 2025 (2024: EUR 17.0 million). The adjusted EBIT margin was -1.5% (2024: 3.4%). In addition to market-related sales declines, temporary additional expenses negatively impacted earnings. These arose from the implementation of the new ERP system at the Maintal site at the beginning of the year and primarily involved additional costs for special freight shipments and extra shifts. This was due to system-related delays in the logistical picking and processing of goods. Furthermore, personnel costs could not be fully adjusted to the lower revenue level due to limited short-term structural flexibility in the personnel department, which further impacted the EBIT margin. Slightly positive effects resulted, however, from the increased focus on postponing the filling of open positions in administration.

 

America

In the Americas region, external sales in fiscal year 2025 amounted to EUR 258.7 million, falling short of the previous year's figure (2024: EUR 279.8 million) by 7.5%. Negative exchange rate effects reduced revenues by 4.3%.

The relevant customer industries developed unevenly: Revenue in the Industry Applications segment increased by 8.0% to EUR 93.9 million (2024: EUR 87.0 million), primarily due to the reallocation of Mobility & New Energy customer revenues implemented in 2025 (a revenue reclassification of EUR 12.8 million). As a result, but also due to subdued demand caused by investment, revenue in the Mobility & New Energy segment declined to EUR 164.8 million (2024: EUR 192.8 million).

The sales share of the Americas region in the Group's revenues remained at the same level as the previous year in fiscal year 2025, at around 32% (2024: 32%).

Adjusted EBIT in the Americas region was EUR 10.1 million, below the prior year's figure (2024: EUR 14.0 million). Temporary inefficiencies in personnel structures had a negative impact, resulting in disproportionately higher personnel expenses relative to weaker sales. However, a slight decrease in regular freight costs had a positive effect on the margin. The adjusted EBIT margin for the Americas region reached 3.8% in fiscal year 2025 (2024: 4.9%).

 

Asia-Pacific

In the 2025 fiscal year, external sales revenues in the Asia-Pacific region, mainly impacted by currency effects (-4.6%), were 6.4% lower than the previous year (2025: EUR 124.6 million; 2024: EUR 133.1 million).

Despite the impact of currency translation effects, revenue in the Industry Applications segment grew by 3.3% to EUR 32.3 million (2024: EUR 31.2 million). A higher business volume compared to the previous year was a key driver of this growth. The reallocation of customer business from the Mobility & New Energy segment, amounting to EUR 1.9 million, also contributed positively at the beginning of 2025. While this effect negatively impacted the revenue figure for Mobility & New Energy, this segment was primarily affected by the persistently weak demand in the Chinese automotive market. Overall, Mobility & New Energy generated revenue of EUR 92.4 million in fiscal year 2025, compared to EUR 101.9 million in the previous year.

The Asia-Pacific region accounted for 15% of the Group's revenue in fiscal year 2025 (2024: 15%).

Despite a decline in sales, adjusted EBIT for the Asia-Pacific region grew to EUR 14.1 million in fiscal year 2025 (2024: EUR 13.4 million). The adjusted EBIT margin increased to 10.8% in the reporting year (2024: 9.5%). The improvement in the operating margin was primarily due to a smaller workforce and an improved product mix.

 

Asset position

 

Preliminary note – Classification of Water Management as a "discontinued business unit" and note on comparability

The assets and liabilities attributable to the Water Management business unit were classified as "discontinued operation" in accordance with IFRS 5 as of July 31, 2025, and are presented separately. The assets are measured at the lower of carrying amount and fair value less costs to sell. Depreciation on the affected assets was suspended from the date of classification. A retrospective adjustment of prior-year figures is not required under IFRS 5. Therefore, a comparison with the previous year is only possible to a limited extent for individual balance

sheet items. Further details can be found in section DISCONTINUED OPERATION, including an overview of the assets and liabilities of the disposal group.

 

Total assets

Total assets amounted to EUR 1,250.7 million as of December 31, 2025, a decrease of 12.9% compared to the previous year (December 31, 2024: EUR 1,436.6 million). This was primarily due to the EUR 50.0 million impairment of goodwill in the EMEA region in the third quarter of 2025. Exchange rate effects as well as the lower business volume also impacted the balance sheet total.

 

Non-current assets

As of December 31, 2025, non-current assets amounted to EUR 428.4 million. Compared to the previous year's reporting date (December 31, 2024: EUR 900.7 million), this represents a decrease of 52.4%. This was primarily due to the reclassification of assets totaling EUR 345.6 million to the "assets held for sale" category. This reclassification is related to the sale of the Water Management business unit and mainly affects the items "goodwill" (EUR 169.0 million), "other intangible assets" (EUR 101.2 million), and "property, plant, and equipment" (EUR 74.7 million). Non-current assets also decreased due to the EUR 50 million impairment of goodwill in the EMEA region recognized as of September 30, 2025, as well as currency effects.

In fiscal year 2025, a total of EUR 34.5 million (2024: EUR 45.3 million) was invested in fixed assets (tangible assets and intangible assets, including capitalized right-of-use assets for movable property). These investments primarily affected locations in the USA, Poland, Germany, and China. PRODUCTION AND LOGISTICS.

The share of non-current assets in total assets amounted to 34.3% as of the balance sheet date in 2025 (December 31, 2024: 62.7%). NOTES

 

Current assets

Current assets amounted to EUR 822.3 million as of December 31, 2025, representing a 53.4% increase compared to the same date of the previous year (December 31, 2024: EUR 535.9 million). This change is primarily attributable to the reclassification of non-current assets belonging to Water Management (EUR 345.6 million) to the balance sheet item "assets held for sale". Current assets included in the "assets held for sale" item amount to EUR 86.9 million. These consist mainly of inventories, trade receivables, other receivables, cash and cash equivalents.

The 34.2% decrease in inventories (December 31, 2025: EUR 144.8 million; December 31, 2024: EUR 219.9 million) can be attributed to the reclassification of EUR 49.8 million. Within the decrease (-20.1%) in trade receivables and other receivables (December 31, 2025: EUR 127.4 million; December 31, 2024: EUR 159.4 million), the reclassification effect amounts to EUR 21.0 million. In this context, cash and cash equivalents also decreased by 32.9% to EUR 85.3 million (December 31, 2024: EUR 127.1 million). The reclassification effect included therein amounts to EUR 9.3 million. The lower business volume, but especially exchange rate effects, also had a negative impact on inventories, trade receivables and other receivables as well as cash and cash equivalents.

The share of current assets in total assets has increased significantly to 65.7% compared to the previous year's reporting date (December 31, 2024: 37.3%).

 

(Trade) Working Capital

(Trade) working capital (inventories plus receivables less payables, in each case mainly trade payables) reached EUR 167.2 million for continuing operations as of December 31, 2025, resulting in a decrease of 29.3% compared to the previous year (December 31, 2024: EUR 236.5 million). This is mainly attributable to the reclassification of assets and liabilities into the respective items "assets held for sale" (inventories of EUR 49.8 million and trade receivables of EUR 21.0 million) and "liabilities relating to assets held for sale" (trade payables of EUR 26.9 million). The (trade) working capital ratio (trade working capital in relation to sales) was 20.4% as of December 31, 2025 (December 31, 2024: 20.5%⁵).

 

Liabilities

 

Equity ratio

NORMA Group's consolidated equity amounted to EUR 564.1 million as of December 31, 2025, a decrease of 21.8% compared to the previous year (December 31, 2024: EUR 721.4 million). The consolidated equity ratio reached 45.1% as of the balance sheet date for fiscal year 2025 (December 31, 2024: 50.2%).

In the current reporting year, equity was primarily impacted by negative currency translation effects, particularly from the US dollar (EUR -61.8 million) – in addition to the negative net income (EUR -81.7 million). The negative net income was primarily due to the EUR 50 million impairment of goodwill in the EMEA region recognized in the third quarter of 2025. Equity was also negatively affected by the dividend payment made to NORMA Group shareholders in May 2025 (EUR 12.7 million; 2024: EUR 14.3 million) and by effects from hedging cash flows (EUR -1.7 million).

 

Provisions

In fiscal year 2025, provisions amounted to EUR 43.3 million (2024: EUR 15.5 million). This includes additions made in the current reporting year to the provisions for restructuring resulting from measures initiated as part of the transformation in 2025.

⁵ The figure refers to the entire Group, including the discontinued operation.

 

Net debt

⁶

Net debt (financial liabilities including derivative hedging instruments of EUR 2.1 million less cash and cash equivalents) amounted to EUR 316.1 million as of the end of December 2025. This represents a change of 4.0% or EUR 13.1 million compared to the previous year (December 31, 2024: EUR 329.2 million).

Ongoing interest expenses during the fiscal year and increases in lease liabilities under newly concluded lease agreements had an increasing effect on net debt. This was offset by cash inflows from operating activities of EUR 89.7 million, net cash outflows from the acquisition and disposal of long-term assets of EUR 41.2 million, and dividend payments of EUR 12.7 million. Net currency effects from foreign currency loans, cash and cash equivalents, as well as lease liabilities and other financial liabilities, also had an increasing impact on net debt.

NORMA Group's financial liabilities decreased by 10.0% to EUR 410.7 million as of the 2025 balance sheet date (December 31, 2024: EUR 456.3 million). The main reason for the change compared to the previous year was a decrease in promissory note loans due to repayments amounting to EUR 27.0 million (2024: EUR -66.8 million). The decrease in loan liabilities resulted primarily from net repayments in fiscal year 2025. These repayments mainly relate to the scheduled repayment of promissory note loans. Currency effects also had a reducing effect. NOTES

The gearing (net debt in relation to equity) was 0.6 as of the balance sheet date in 2025 (2024: 0.5).

The leverage relevant for the financing agreements was higher at 2.5 as of December 31, 2025 (December 31, 2024: 2.1).

 

Financial position

 

Financing measures

NORMA Group constantly monitors risks from changes in exchange and interest rate changes and limits them, among other ways, by using derivative hedging instruments. Furthermore, NORMA Group generally strives to achieve a diversification of its financing instruments in order to reduce risks. This also includes the prolongation of repayment obligations and an even distribution of the maturity profile. Most of the supply and service relationships between individual currencies are hedged at matching maturities over the course of the year.

NORMA Group had successfully refinanced its bank credit lines most recently in fiscal year 2019, thus creating further financial security and even greater flexibility for the future. The credit agreement has a total volume of initially EUR 300 million, including a revolving facility of EUR 50 million and a flexible accordion facility. An additional EUR 50 million revolving facility was agreed under the existing credit agreement in October 2021. The refinancing was concluded with a banking syndicate consisting of ten international banks. In addition, a sustainability component links the financing conditions to NORMA Group’s commitment in the area of corporate responsibility. In 2025, as in the previous year, NORMA Group was able to achieve a positive sustainability scoring, which enabled further savings with regard to the credit margin to be realized. Following the exercise of the two extension options under the syndicated loan agreement in fiscal years 2020 and 2021, all components of the loan agreement are available to NORMA Group until the end of 2026. A waiver was concluded for the syndicated bank credit line. This waiver provides for timely repayment upon closing of the transaction process, specifically with regard to the agreement signed on September 23, 2025, for the sale of the Water Management business unit, using the proceeds from the sale. Furthermore, in August 2023, NORMA Group issued a promissory note loan –

⁶ The information on net debt relates to the entire Group, i.e., including the discontinued operation, and therefore also includes the corresponding amounts of assets and liabilities classified as held for sale. NOTES

also with a sustainability component – for general corporate financing and to create further financial flexibility. The promissory note, with a total volume of EUR 120 million, was issued in tranches with maturities of three, five, and seven years, and with fixed and variable interest components. This ensures maximum financing flexibility. Due to the agreement signed on September 23, 2025, for the sale of the Water Management business, existing variable-rate notes totaling EUR 57.5 million were terminated on an extraordinary basis. Fixed-rate note investors with a volume of EUR 45.5 million agreed to the waiver offered to investors, relinquishing their right to terminate the notes.

The commercial paper program, established in 2019 for short-term liquidity management, remained unused, as in the previous year. The revolving credit facilities were also not drawn upon as of December 31, 2025 (December 31, 2024: EUR 0 million). Promissory note loan tranches from 2014 totaling EUR 27 million were repaid as scheduled. This resulted in the complete repayment of the 2014 promissory note loan. NORMA Group's gross debt (liabilities to banks) decreased significantly year-on-year from EUR 397.7 million on December 31, 2024, to EUR 356.9 million at the end of 2025.

To hedge against interest rate risks that could arise from external financing components, NORMA Group uses interest rate hedging transactions. As of December 31, 2025, the average interest rate on gross debt (excluding derivatives) was 4.15%. The maturity profile of NORMA Group as of December 31, 2025 based on the promissory note loans III (2016) and IV (2023) as well as the syndicated bank loan (2019) is as shown in the charts G015 and G016. As of the 2025 balance sheet date, NORMA Group is no longer subject to any financial covenants included in loan agreements (financial covenants: net debt as a percentage of adjusted Group EBITDA). However, due to its link to the level of financing costs, this key figure remains part of the financing agreements and is continuously monitored. Specific future financing steps depend on current changes in the financing markets and potential acquisition opportunities.

 

Cash flow

 

Net operating cash flow

In fiscal year 2025, NORMA Group generated net operating cash flow (adjusted EBITDA less changes in working capital and investments from operating activities) of EUR 95.8 million (2024: EUR 105.4 million). This development resulted from a significantly lower adjusted EBITDA compared to the previous year (2025: EUR 53.0 million; 2024: EUR 79.9 million), a reduction in working capital (2025: EUR 11.1 million; 2024: EUR 5.3 million) relative to EBITDA, and lower investments from operating activities compared to the previous year (2025: EUR 40.2 million; 2024: EUR 53.4 million). Overall, net operating cash flow decreased by 9.1% compared to fiscal year 2024.

 

Cash flow from operating activities

Cash flow from operating activities declined significantly in fiscal year 2025 to EUR 89.7 million (2024: EUR 137.0 million). The main driver of this decline was the considerably lower net profit. Cash flow from operating activities is derived indirectly from net profit. Net profit is adjusted for non-cash depreciation, expenses allocated to cash flow from investing or financing activities, and other non-cash expenses and income. Furthermore, cash flow from operating activities primarily includes changes in inventories, trade receivables, and other assets, as well as trade payables and other liabilities not attributable to investing or financing activities. Detailed information on these components is provided in the NOTES.

 

Cash flow from investing activities

The net cash outflow from investing activities in fiscal year 2025 amounted to EUR 41.2 million (2024: EUR -63.5 million). This primarily comprises net cash outflows from the acquisition and disposal of long-term assets. Of the EUR 40.2 million (2024: EUR 53.5 million) invested in property, plant and equipment and intangible assets during the fiscal year, EUR 14.9 million (2024: EUR 21.3 million) relates to expenditures for expanding operational capacity and EUR 25.4 million (2024: EUR 32.1 million) to expenditures for maintaining and improving operational capacity and processes. Information on the investment priorities is set out in the PRODUCTION AND LOGISTICS section. The prior year's cash outflow from investing activities included the net payments for the acquisition of Teco. NOTES

 

Cash flow from financing activities

Cash outflows from financing activities decreased by 35.5% to EUR 73.6 million in fiscal year 2025 (2024: EUR -114.1 million). This was primarily due to a reduction in net loan disbursements (2025: EUR 29.1 million; 2024: EUR 63.4 million). Cash outflows from financing activities also decreased due to lower interest payments (2025: EUR 18.4 million; 2024: EUR 23.7 million) and a lower dividend payment to shareholders of NORMA Group SE in fiscal year 2025 compared to the previous year (2025: EUR 12.7 million; 2024: EUR 14.3 million). NOTES