Forecast 2026

The Management Board confirms the forecast for the full year 2026 published in the  ANNUAL REPORT 2025. The general economic environment remains characterized by heightened uncertainty, especially due to geopolitical tensions, trade policy developments, and ongoing structural changes in the relevant end markets. 

At the same time, the global economy is expected to develop along a moderately positive trajectory overall, albeit with different regional dynamics. While solid growth is forecast for the United States, economic development in Europe remains restrained. In China, growth is expected to be weaker than in prior years but still positive.

In the end markets relevant to NORMA Group, fiscal 2026 is expected to be moderate overall. While demand in the automotive sector is expected to remain subdued, the situation in mechanical engineering and plant engineering is showing signs of a slight stabilization, but the momentum overall remains muted. The construction sector is forecast to follow a moderate trajectory.

On the whole, the Management Board of NORMA Group SE expects the economic environment and the markets to remain highly volatile and is therefore considering fiscal 2026 with due caution.

Development of Group sales in fiscal 2026

Taking into account the aforementioned expected development in the regions and end markets relevant to NORMA Group and assuming that trade wars do not intensify yet again, that important raw materials and pre-products remain available, and that no further negative factors will arise worldwide in the course of 2026 that could lead to significant pressure on NORMA Group’s business performance, the Management Board anticipates Group revenue growth in the range of around 0% to 2% for fiscal 2026.

Adjusted EBIT margin

With regard to earnings, management assumes that profitability in fiscal 2026 will improve year on year. This development is supported in particular by the measures implemented to improve the cost structure as part of the NewNORMA transformation. Against this backdrop, the Management Board expects an adjusted EBIT margin of around 2% to 4% for fiscal 2026. The forecast for the adjusted EBIT margin is subject to the condition that no severely unfavorable market conditions arise that could lead to significant additional costs or restrictions in the implementation of operational efficiency measures.

With regard to adjustments to earnings, the Management Board expects – as in prior years – that depreciation and amortization of tangible and intangible assets arising from purchase price allocations in connection with completed M&A transactions, as well as certain related expenses and income, will be included. Depending on exchange rate developments in fiscal 2026, they are expected to amount to roughly up to EUR 5 million.

The implementation and execution of the planned measures from the Transformation Plan is expected to result in cumulative total costs in the range from around EUR 54 million to around EUR 61 million by 2028. Special expenses related to this amounting to about EUR 24 million are expected in fiscal 2026. These should be related mainly to expenses for severance payments under the restructuring measures, related consulting costs, and expenses from relocation of production. The Company intends to adjust all extraordinary expenses from the global transformation in the operating result (EBIT).

Net operating cash flow

For the net operating cash flow in fiscal 2026, the Management Board forecasts a value in the range of around EUR 10 million to around EUR 20 million. This development is characterized in particular by expected payments in connection with the implementation of the transformation program as well as effects from the change in the basis of consolidation as a result of the sale of the Water Management business.