Notes on the Development of the Segments

The following explanations regarding the development of the segments refer to the continuing operations. Further information can be found in the section IMPACT OF THE DIVESTMENT OF WATER MANAGEMENT ON THE FINANCIAL REPORTING FOR THE THIRD QUARTER 2025.

In the first nine months of 2025, a significant portion of Group revenue was generated by foreign Group companies. This amounted to 89.7% in the reporting period (Q1–Q3 2024: 89.6%).

 

EMEA

In the period from January to September 2025, NORMA Group generated external sales of EUR 336.0 million in the EMEA region, a decrease of 6.9% compared to the same period last year (Q1-Q3 2024: EUR 360.8 million). Currency effects had little impact on development during the reporting period.

In the third quarter of 2025, sales in the EMEA region amounted to EUR 100.9 million. NORMA Group thus recorded a sales decline of 5.0% in the period from July to September 2025 compared to the same quarter of the previous year (Q3 2024: EUR 106.3 million). Currency translation had a slightly negative effect (-0.3%).

Performance in the EMEA region was particularly impacted by a continuing challenging market environment. Revenue trends in the strategically important industries presented a contrasting picture: The Industry Applications business unit recorded growth in the period from January to September 2025. Sales rose to EUR 96.6 million, up from EUR 88.8 million in the previous year. Lower volumes were more than offset by the reclassification of revenues during the current year. In contrast, revenue in the Mobility & New Energy business area was significantly below the previous year’s level (Q1-Q3 2025: EUR 239.4 million; Q1-Q3 2024: EUR 272.0 million). This was primarily due to weak demand due to an environment characterized by generally ongoing investment reluctance. These circumstances led to an unexpectedly low order volume among key customers. Revenue trends were further impacted by various unforeseen special events on the customer side. The reclassification of customer business to the Industry Applications business area in the first quarter of 2025 further reduced the revenue level at Mobility & New Energy.

The EMEA region’s share of Group sales was around 53.2% in the first nine months of 2025 (Q1-Q3 2024: 53.3%).

Adjusted EBIT in the EMEA region in the first nine months of 2025 amounted to EUR -4.7 million (Q1-Q3 2024: EUR 16.4 million), with the adjusted EBIT margin at -1.3%, significantly below the previous year’s figure (Q1-Q3 2024: 4.3%). In addition to the market-related decline in sales, temporary additional expenses resulting from the implementation of a new ERP system at the Maintal site at the beginning of the year had a negative impact. These primarily affected costs for special freight and shifts. This was due to system-related delays in the logistical removal and processing of goods. In addition, personnel costs could not be fully adjusted to the lower revenue level due to limited structural adaptability in the personnel area. This also had a negative impact on the EBIT margin. Slightly positive effects resulted from the focus on suspending replacements in the administrative area.

Investments in the EMEA region totaled EUR 11.8 million in the period from January to September 2025 (Q1-Q3 2024: EUR 14.0 million) and reflect a temporarily more selective investment activity. The focus of investments was on the sites in Germany, Poland, Serbia, and the United Kingdom.

 

Americas

In the first nine months of 2025, sales in the Americas region fell 6.5% year-on-year to EUR 204.4 million (Q1-Q3 2024: EUR 218.7 million). Currency effects – particularly related to the US dollar – had a negative impact of 3.1% on revenue development. Adjusted for this, the decline was 3.4%, primarily due to lower sales volumes.

In the third quarter of 2025, sales amounted to EUR 66.3 million, a decline of 4.9% compared to the same quarter of the previous year (Q3 2024: EUR 69.7 million). The decrease was primarily due to strongly negative currency effects (-6.1%), which significantly impacted business performance. Adjusted for this, the third quarter saw positive growth of 1.2%, which partially offset the decline in sales.

Revenue development in the Americas region was influenced by various factors. The Industry Applications business area recorded double-digit growth (11.1%) – from EUR 67.0 million in the same period of the previous year to EUR 74.4 million in the first nine months of 2025. This was primarily due to the change in the allocation of revenue from the Mobility & New Energy business in 2025. Furthermore, encouraging momentum in the volume business became apparent in the third quarter of 2025. In contrast, revenue in the Mobility & New Energy business area declined due to subdued demand caused by investment-related factors. In addition to the lower sales volume, the aforementioned reclassification of customer industries and revenue from this business unit had an additional negative impact. Overall, Mobility & New Energy achieved revenue of EUR 130.0 million in the period January to September 2025 (Q1-Q3 2024: EUR 151.7 million).

The Americas region’s share of total sales in the first nine months of 2025 was 32.4% (Q1-Q3 2024: 32.3%).

Adjusted EBIT in the Americas region for the period January to September 2025 of EUR 7.3 million was below the previous year’s figure (Q1-Q3 2024: EUR 9.8 million). The adjusted EBIT margin amounted to 3.5%, also down from the previous year’s figure of 4.4%. Temporary inefficiencies in personnel structures had a negative impact, causing personnel expenses to rise disproportionately compared to weaker revenue. In contrast, slightly lower costs for regular freight had a positive impact on the margin.

From January to September 2025, investments totaling EUR 6.4 million were made in the Americas region (Q1–Q3 2024: EUR 9.1 million), mainly relating to locations in the USA.

 

Asia-Pacific

In the period from January to September 2025, external sales in the Asia-Pacific region amounted to EUR 91.4 million, down 6.2% year-on-year (Q1–Q3 2024: EUR 97.4 million). Negative currency effects weighed on development by 3.6%. Adjusted for this, sales declined by 2.6%, primarily due to lower volumes.

In the third quarter of 2025, NORMA Group generated sales of EUR 30.3 million in the Asia-Pacific region (Q3 2024: EUR 30.6 million). The strong business performance, which showed noticeable growth (+6.0%), was completely offset by negative currency effects (-6.7%).

In the Industry Applications business, the Asia-Pacific region recorded a year-on-year increase in sales in the nine-month period of 2025 despite currency-related headwinds. Supported by the realigned revenue allocation and solid volume development, revenue rose to EUR 24.0 million, up from EUR 22.9 million in the prior-year's period. However, the reclassification to the Industry Applications business unit had a negative impact on the Mobility & New Energy business area. Subdued demand in the Chinese automotive market also continued to weigh on sales, although a slightly positive trend became apparent in the third quarter of 2025. Against this backdrop, sales at Mobility & New Energy amounted to EUR 67.3 million in the first nine months of 2025 (Q1-Q3 2024: EUR 74.5 million).

The Asia-Pacific region’s share of Group sales in the nine-month period of 2025 was at around 14.5% (Q1-Q3 2024: 14.4%).

Adjusted EBIT in the Asia-Pacific region exceeded the prior-year figure of EUR 8.0 million in the current reporting period (Q1-Q3 2024: EUR 7.6 million) despite the decline in sales. The adjusted EBIT margin amounted to 8.3%, also improving on the first nine months of 2024 (Q1-Q3 2024: 7.4%). The improvement in the adjusted EBIT margin was primarily due to a smaller headcount and slightly positive effects from an improved product mix.

Investments in the Asia-Pacific region totaled EUR 2.9 million in the first nine months of 2025 (Q1–Q3 2024: EUR 3.5 million). They were primarily attributable to the sites in China.