Earnings position

Sales development in the first half of 2025

In the first half of 2025, NORMA Group generated consolidated sales of EUR 574.6 million, 6.5% lower than in the same period last year (H1 2024: EUR 614.8 million). This includes negative currency effects of 0.9%. Sales revenue from Teco’s business, which has been part of NORMA Group since 2024, contributed 0.1% to sales development in the current reporting period. Adjusted for the aforementioned effects, NORMA Group recorded a 5.8% decline in sales, primarily due to volume declines in all three business units.

The subdued trend in the first half of the year was also evident in the performance of the regional segments, all of which were down on the previous year. The effects of prevailing market uncertainties in the automotive industry, in particular, weakened sales potential. This particularly affected the EMEA region, but the Americas and Asia-Pacific regions also saw declining sales volumes in the first six months of 2025. In addition, weather-related effects in the Americas region had a negative impact on the development of the US water business, whereas the water business in the Asia-Pacific region flourished. Strong industrial business in EMEA and America also had a balancing effect.

In the second quarter of 2025, sales revenue decreased to to EUR 290.4 million, down by 5.2% compared to the same quarter of the previous year (Q2 2024: EUR 306.3 million). Adjusted for negative effects from currency translations (-3.0%), the decline amounted to 2.2%. Overall, this corresponds to a sequential improvement compared to the first quarter of 2025.

 

Industry Applications: Sales grow by 6.9% overall in the first six months of 2025

Sales in the Industry Applications business amounted to EUR 117.3 million in the first six months of 2025, an increase of 6.9% in total compared to the first half of the previous year (H1 2024: EUR 109.7 million). This includes the positive contribution from the reclassification of customer business since the first quarter of 2025, which was previously allocated to the Mobility & New Energy strategic business unit. This included, in particular, sales from the customer application areas of construction and agricultural machinery as well as stationary energy supply. By contrast, negative effects from translation conversions (-0.5%) slightly reduced the development of revenue in the first half of 2025. Adjusted for the aforementioned effects, there was a total decline of 7.8%. This is primarily due to significantly lower volumes as a result of weak global demand caused by the economic environment. This was primarily visible in the EMEA and Asia-Pacific regions. In the former case, transitory sales losses due to temporary logistics delays in connection with the introduction of an ERP system at a site in Germany dampened sales development in the first three months. The sequentially improved trend across all regions in the second quarter of 2025 was unable to offset these effects. 

 

Water Management: Weather conditions lead to slight drop in sales in the first half of 2025

In the first half of 2025, revenue in the Water Management business amounted to EUR 155.6 million and was therefore slightly lower (-1.3%) than in the same period of the previous year (H1 2024: EUR 157.6 million). Positive drivers in the first six months of 2025 were the revenue from the acquisition of Teco (+0.4%) and the reclassification of the business with joining technology for the gas application area in the currant business year. These activities  had been attributed to another segment until the end of 2024. In contrast, negative currency effects had a dampening effect (-1.2%). Excluding the aforementioned currency and acquisition effects, revenue decreased by 2.3%. This was primarily due to a decline in the Americas region. Business performance there was negatively impacted by weather-related special effects, particularly in the first quarter of 2025. Although sales recovered again from April 2025, the sales potential could not be fully exploited in the current reporting period due to restraint on the customer side, which occurred in June. 

 

Mobility & New Energy: Sales performance below previous year due to prevailing market uncertainties

The Mobility & New Energy business generated revenue of EUR 301.7 million in the first half of 2025. This represents a decline of 13.2% compared with the same quarter of the previous year (H1 2024: EUR 347.4 million). The main reason for this was persistently high market volatility, which was further exacerbated by ongoing uncertainty due to potential US trade tariffs on global trade flows. This resulted in a noticeable decline in demand within the global automotive industry, which was evident in all regional segments, although a more positive trend became apparent in the EMEA region in the second quarter of 2025. It should be noted that the development in the first half of 2025 is comparable to the previous year only to a limited extent due to the intra-group reclassification of revenue. The adjustment was mainly related to customer businesses that were still allocated to Mobility & New Energy at the end of 2024 and were assigned to Industry Applications (including the construction machinery, agricultural machinery and stationary energy supply businesses) in the current fiscal year. This had a significant negative impact (decrease of EUR 19.6 million) on the sales figure for Mobility & New Energy in the first half of the year.. Negative currency effects (-0.8%) further reduced sales. Excluding the effects of currency translations, the decline was 6.8%. 

 

Adjusted cost of materials ratio

Adjusted costs of material totaled EUR 246.4 million in the first half of 2025, 9.0% lower than the same period last year (H1 2024: EUR 270.7 million). At 42.9%, the adjusted cost of materials ratio in relation to sales – excluding changes in inventory – improved in the first half of 2025 than in the same period last year (H1 2024: 44.0%). This pleasing development in the cost of materials ratio is due in particular to a mix of different effects. In the first half of 2025, this primarily included further optimizations in the area of material and energy costs as well as price increases implemented for customers. Overall, the ratio of cost of materials to total operating performance (sales revenue plus changes in inventories plus other own work capitalized) in the six-month period of 2025 also showed an improvement compared to the same period of the previous year at 42.5% (H1 2024: 43.5%). The increase in inventories of finished goods and work in progress in the first six months (H1 2025: EUR 1.7 million) had a reducing effect on the cost of materials ratio, albeit not as strong as in the previous year (H1 2024: increase in inventories of EUR 5.4 million).

In the second quarter of 2025, adjusted costs of material amounted to EUR 125.5 million (Q2 2024: EUR 133.9 million), and the adjusted cost of materials ratio in relation to sales reached 43.2% (Q2 2024: 43.7%). The adjusted cost of materials ratio in relation to total operating performance in the second quarter of 2025 was 42.5% (Q2 2024: 43.3%).

 

Adjusted gross profit and adjusted gross margin 

In the first half of 2025, NORMA Group achieved adjusted gross profit (sales less costs of materials and changes in inventories plus other own work capitalized) of EUR 332.9 million. Compared to the same period of the previous year (H1 2024: EUR 351.6 million), this represents a decrease of 5.3%. The main reason for the decline is the decrease in sales revenue during the first six months of 2025, whereas the sharp decline in the cost of materials and the increase in inventories of finished goods and work in progress between January and June 2025 (H1 2025: EUR 1.7 million; H1 2024: EUR 5.4 million) supported gross profit. Against this background, the adjusted gross margin (based on sales) improved to 57.9% in the first half of 2025, compared to 57.2% in the same period of the previous year.

Gross margin in the second quarter of 2025 totaled EUR 169.7 million, a decrease of 3.3% compared to the same quarter of the previous year (Q2 2024: EUR 175.5 million). At 58.4%, the adjusted gross margin in the second quarter of 2025 was significantly higher than in the same quarter of the previous year (Q2 2024: 57.3%). The inventory build-up of EUR 3.2 million from April to June (Q2 2024: inventory build-up of EUR 2.1 million) and the lower adjusted costs of materials more than offset the negative impact on the adjusted gross margin.

 

Adjusted personnel cost ratio 

As of June 30, 2025, NORMA Group had a total of 7,608 employees worldwide. Of these, 5,926 were part of the permanent workforce. The headcount was lower compared to both June 30, 2024 (6,121 employees) and the end of 2024 (6,041 employees). This mainly affected the regional segments of America (-3.2%) and Asia-Pacific (-4.1%), while in EMEA, the region with the largest workforce, only a slight decline (-0.6%) was visible. 

Adjusted personnel expenses amounted to EUR 177.0 million in the first half of 2025 and were therefore 2.2% higher than in the same period of the previous year (H1 2024: EUR 173.3 million) despite the lower number of permanent employees. The adjusted personnel cost ratio in the first half of 2025 was 30.8% (H1 2024: 28.2%). The increase in personnel expenses was due to global wage inflation, which had a negative impact on the personnel cost ratio in relation to declining sales. Temporary inefficiencies at a few locations in Europe also contributed to personnel expenses remaining at a higher level. Expenses related to the early departure of former CEO Guido Grandi, announced on February 17, 2025, also had an increasing impact, particularly in the first three months of 2025. In contrast, there were slightly positive currency effects in the first six months, which had a reducing effect on the personnel cost ratio.

A positive reversal trend in personnel expenses became apparent in the second quarter of 2025. At EUR 85.7 million, they were down 1.8% on the figure for the same quarter of the previous year (Q2 2024: EUR 87.3 million). Among other things, positive currency translation effects also supported the trend slightly. As a result of the disproportionate decline in sales, the personnel expenses ratio of 29.5% in Q2 2025 was nevertheless higher than in the same quarter of the previous year (Q2 2024: 28.5%). CONDENSED NOTES

 

Other operating income and expenses

The adjusted balance of other operating income and expenses in the first half of 2025 was EUR -91.5 million, 5.5% lower than in the reporting period of the previous year (H1 2024: EUR -96.9 million). The share of other operating expenses and income in relation to sales was 15.9 in the current reporting period (H1 2024: 15.8%) and thus remained stable.
 

Other operating income totaled EUR 6.0 million (H1 2024: EUR 7.4 million). This mainly includes currency gains from operating activities of EUR 2.1 million (H1 2024: EUR 3.9 million) and income from the release of liabilities and provisions (H1 2025: EUR 2.5 million; H1 2024: EUR 2.1 million). CONDENSED NOTES

Other operating expenses amounted to EUR 97.5 million in the first six months of 2025. Compared to the previous year (H1 2024: EUR 104.4 million), expenses were reduced significantly overall in a challenging first half of 2025, resulting in a 6.5% lower level. The majority of this relates to expenses for temporary workers and other personnel-related expenses (H1 2025: EUR 20.9 million; H1 2024: EUR 26.6 million). In addition, other administrative expenses were lower in the current reporting period (H1 2025: EUR 3.7 million; H1 2024: EUR 5.8 million). There were also fewer write-downs and value adjustments on trade receivables from January to June 2025 (H1 2025: EUR 0.9 million; H1 2024: EUR 1.3 million). Another large share of other operating expenses is spent on IT and telecommunications, which remained almost at the previous year's level in the six-month period of 2025 (H1 2025: EUR 13.8 million; H1 2024: EUR 13.7 million). On the other hand, higher consulting and marketing costs (H1 2025: EUR 14.5 million; H1 2024: EUR 10.8 million) and slightly higher freight costs (H1 2025: EUR 17.1 million; H1 2024: EUR 16.7 million) had an increasing effect on operating expenses. A closer look reveals the following picture: Although regular freight costs fell in the first six months of 2025 compared to the previous year (reduction of EUR 2.3 million to EUR 13.2 million), special freight costs rose (increase of EUR 2.8 million to EUR 3.9 million). The background to this was the implementation of a new ERP system at the site in Maintal in the first quarter of 2025. In this context, technical delays in logistical processing temporarily required additional expenses, including for special freight. By focusing on transparent and cost-efficient planning and the general avoidance of unnecessary freight movements, NORMA Group was nevertheless able to effectively contain total freight expenses.

In the second quarter of 2025, the balance of the adjusted other operating income and expenses amounted to EUR -45.5 million, 3.5% lower than in the corresponding quarter of the previous year (Q2 2024: EUR -47.2 million). The ratio to sales was 15.7% (Q2 2024: 15.4%).

 

Operating profit

Adjusted EBIT amounted to EUR 33.7 million in the current reporting period, representing a decrease of 35.0% compared to the comparable figure for the previous year (H1 2024: EUR 51.8 million).In the first six months, adjustments were made for amortization of tangible and intangible assets from purchase price allocations, expenses for the preparation of the planned sale of the Water Management business and costs for the initiation of the transformation of the organization planned from 2025. 

Adjusted EBIT in the first half of 2025 was primarily impacted by the decline in sales. In addition, higher personnel expenses due to global wage inflation, among other factors, had a negative impact on the adjusted EBIT margin in the 2025 reporting period. In contrast, a reduction in material expenses and other operating expenses had an increasing effect on margin development in the 2025 reporting period. In particular, significantly lower expenses for temporary staff and other personnel-related expenses, the decrease in other administrative expenses and lower write-downs on receivables had a positive effect. The adjusted EBIT margin reached 5.9% in the first half of 2025 (H1 2024: 8.4%).

In the second quarter of 2025, the adjusted EBIT margin amounted to 8.1% (Q2 2024: 8.5%), based on an adjusted EBIT of EUR 23.4 million (Q2 2024: EUR 26.1 million).

 

NORMA Value Added (NOVA)

NORMA Value Added (NOVA) was EUR -32.0 million in the first half of 2025 (H1 2024: EUR -17.6 million). This was mainly due to the decline in adjusted EBIT and a disproportionate increase in the tax rate.

 

Financial result

The financial result in the six-month period of 2025 was EUR -9.3 million, a significant change compared to the previous year (H1 2024: EUR -12.9 million). CONDENSED NOTES. This development was mainly driven by lower net interest expense (H1 2025: EUR -8.1 million; H1 2024: EUR -11.2 million), which resulted from a decrease in interest expense for liabilities to banks. This positive development is attributable to a fall in interest rates compared to the previous year, which was particularly noticeable in the area of variable-rate loans. Currency effects also had a

marginal reducing impact. The scheduled repayment of promissory note loans and an unscheduled repayment of syndicated loans in the 2024 fiscal year as well as the lower net currency losses from financing activities compared to the previous year (H1 2025: EUR -0.5 million; H1 2024: EUR -0.8 million) also had a significant impact on the development of net interest expenses in the first half of 2025. Taken together, this had a positive effect on the financial result in the first six months of 2025.

In the second quarter of 2025, the financial result amounted to EUR -4.6 million (Q2 2024: EUR -6.7 million).

 

Adjusted tax rate and adjusted profit for the period

Based on adjusted earnings before taxes (EBT) of EUR 24.4 million in the first half of 2025 (H1 2024: EUR 39.0 million), the adjusted tax rate was 57.7% (H1 2024: 40.5%). The above-average tax rate is mainly due to the non-recognition of deferred tax assets on loss carryforwards and non-creditable foreign withholding taxes. Against this backdrop, and burdened by the significantly lower adjusted EBIT in the current reporting period, the adjusted profit for the period fell to EUR 10.3 million (H1 2024: EUR 23.2 million). Based on an unchanged number of shares of 31,862,400, this resulted in adjusted earnings per share of EUR 0.32 in the first six months of the current fiscal year (H1 2024: EUR 0.72). 

The adjusted net profit for the period in the second quarter of 2025 was EUR 10.6 million, almost matching the previous year's level (Q2 2024: EUR 10.7 million). Adjusted earnings per share in the period from April to June 2025 were EUR 0.33 (Q2 2024: EUR 0.34).

 

Development of sales and earnings in the segments

The share of Group sales generated abroad remained at 89.6% in the period from January to June 2025 at almost the same level as in the corresponding half of the previous year (H1 2024: 89.5%).

 

EMEA region

External sales in the EMEA region amounted to EUR 239.8 million in the first half of 2025, 7.5% below the figure for the same period last year (H1 2024: EUR 259.2 million). Sales from Teco’s business, which has been part of NORMA Group since 2024, contributed 0.3% to sales development. Positive currency effects also had a slight positive impact of 0.1% on sales in the first half of 2025. Adjusted, the decline amounted to 7.9 %.

In the second quarter of 2025, NORMA Group generated sales of EUR 119.8 million in the EMEA region. This resulted in a sales decline of 2.3% compared to the same quarter of the previous year (Q2 2024: EUR 122.7 million). Currency effects hardly had any impact in the EMEA region in the second quarter of 2025.

The Industry Applications business unit recorded higher revenue in the period from January to June 2025 compared to the same period of the previous year (H1 2025: EUR 66.7 million; H1 2024: EUR 63.4 million). The European Water Management business showed stable development in the first half of 2025 (H1 2025: EUR 4.8 million; H1 2024: EUR 3.1 million).  In contrast, revenue in Mobility & New Energy in the EMEA region was significantly below the previous year's level (H1 2025: EUR 168.2 million; H1 2024: EUR 192.7 million). While lower volumes in Industry Applications and Water Management were more than offset by the reclassification of revenues in the current year, this had an additional dampening effect on Mobility & New Energy, on top of the already weak customer demand from the European automotive industry.

The EMEA region's share of consolidated revenue in the first half of 2025 remained stable at around 42% compared to the previous year (H1 2024: 42%).

Adjusted EBIT in the EMEA region amounted to -0.6 million in the first half of 2025 (H1 2024: EUR 17.0 million). The adjusted EBIT margin was -0.3% (H1 2024: 6.2%). This was due to a loss in the first quarter of 2025. In addition to the market-related decline in sales, there were also temporary additional expenses from the implementation of an ERP system at the Maintal site at the beginning of the year. These mainly comprised costs for special freight and shifts as well as for IT and consulting services. This was due to system-related delays in the logistical removal and processing of goods. In contrast, a positive adjusted EBIT was recorded in the second quarter of 2025. The EBIT margin in the EMEA region was also negatively impacted by the temporarily limited structural adjustment options in the area of personnel due to lower revenues. As a result of these general conditions, personnel costs could not be fully adjusted to the lower level of sales in the first half of 2025.

Investments in the EMEA region amounted to EUR 6.4 million in the first half of 2025 (H1 2024: EUR 9.7 million). The investment focus was on the sites in Germany, Poland, Serbia and the United Kingdom.

 

Americas region

Sales (external sales revenues) in the Americas region reached EUR 267.8 million in the first half of 2025, down 5.0% on previous year (H1 2024: EUR 281.8 million). Currency effects, primarily in connection with the US dollar, had a negative impact (-1.4%) on sales development in the first six months of 2025. On an adjusted basis, the decline in sales amounted to 3.5%, which is primarily due to a decrease in sales volume.

Sales revenues in the second quarter of 2025 totaled EUR 137.2 million, an increase of 6.3% compared to the same quarter of the previous year (Q2 2024: EUR 146.4 million). This is primarily due to strongly negative currency effects (-5.1%). Excluding these, the decline in the second quarter of 2025 amounted to 1.2 %.

The main reason for the decline in sales in the Americas region in the first half of 2025 was a downward trend in the Mobility & New Energy business area, which was characterized by a general reluctance to invest. On the one hand, this was due to a decrease in sales volumes. On the other hand, the reclassification of customer industries and revenues from the Mobility & New Energy business unit to Industry Applications (revenues of EUR 7.5 million) in the current financial year had a significantly reducing effect on revenues (H1 2025: EUR 88.2 million, 2024: EUR 103.3 million). In Industry Applications sales increased at a double-digit rate due to the adjustment of the sales allocation – from EUR 36.8 million in the previous year to EUR 43.2 million in the current reporting period. By contrast, the Water Management business of the US subsidiary NDS remained below the previous year's level with a volume of EUR 136.5 million (H1 2024: EUR 141.7 million) in the period January to June 2025. This was mainly due to weather-related special effects, which triggered restrained customer ordering behavior in the first three months of 2025. In the period from April to June, a positive trend in volume, as well as in price quality, became apparent again.

In total, the share of the Americas region in Group sales rose to 47% in the first half of 2025 (H1 2024: 46%).

Adjusted EBIT in the Americas region reached EUR 33.0 million in the period January to June 2025 despite the reduced sales volume (2024: EUR 34.4 million). In relation to sales, this resulted in an EBIT margin for the Americas region of 12.2% (H1 2024: 12.0%). While temporary inefficiencies in personnel structures had a negative impact on the margin in the Americas region, meaning that personnel expenses were disproportionately higher than the weak sales, the margin was supported in part by slightly lower costs for regular freight.

In the Americas region, investments  in the period from January to June 2025 amounted to EUR 10.7 million (H1 2024: EUR 10.9 million). They particularly focused on locations in the US.

 

Asia-Pacific region

In the Asia-Pacific region, revenues in the first half of 2025 amounted to EUR 67.0 million. This represents a decline in sales by 9.1% compared to the previous year period (H1 2024: EUR 73.8 million). Negative currency effects had an additional negative impact of 1.9% on sales. Adjusted, the decline amounted to 7.2%.

In the second quarter of 2025, sales revenues of EUR 33.4 million were generated in the Asia-Pacific region. Compared to the corresponding quarter of the previous year (Q2 2024: EUR 37.2 million), sales were 10.2% lower. Negative currency effects (-4.8%) had a significant lowering impact. Excluding this, the decline in sales amounted to 5.4%.

In Industry Applications sales declined particularly sharply in the six months of 2025 compared to the previous year period (H1 2025: EUR 7.4 million; H1 2024: EUR 9.6 million). Sales at Mobility & New Energy also fell significantly in the first half of 2025 due to subdued demand from the Chinese automotive industry (H1 2025: EUR 45.3 million; H1 2024: EUR 51.5 million). Meanwhile, the reallocation of individual customer industries and sales in favor of  Industry Applications and Water Management at the beginning of the 2025 fiscal year also had a dampening effect on development. 

Driven by the adjustments implemented and a good volume growth sales in the Water Management area exceeded the figure for the same period of the previous year at EUR 14.4 million (H1 2024: EUR 12.8 million). However, the positive development was noticeably slowed down by negative exchange rate effects. In total, the share of the Asia-Pacific region in Group sales in the first half of 2025 remained unchanged compared to the same period of the previous year at around 12% (H1 2024: 12%). 

Adjusted EBIT in the Asia-Pacific region was EUR 4.3 million in the first half of 2025 (H1 2024:EUR 5.5 million). The adjusted EBIT margin reached 5.9% (H1 2024: 6.9%). The decline was mainly due to higher personnel costs due to delayed adjustments in personnel structures in connection with lower sales.

In the period from January to June 2025, EUR 2.2 million was invested in the Asia-Pacific region (H1 2024: EUR 2.0 million). The investments were primarily made at the plants in China.

 

Asset situation

 

Total assets

As of June 30, 2025, total assets amounted to EUR 1,353.6 million, 5.8% higher than at the end of 2024 (December 31, 2024: EUR 1,436.6 million).

 

Assets

Non-current assets amounted to EUR 822.3 million as of June 30, 2025, a slight decrease of 8.7% compared to December 31, 2024 (EUR 900.7 million). The decrease was mainly due to write-downs on intangible assets and property, plant, and equipment, which more than offset capital expenditures. In addition, negative currency effects reduced goodwill (-6.1%). Non-current assets accounted for 60.7% of total assets as of the reporting date June 30, 2025 (Dec 31, 2024: 62.7%).

In the period from January to June 2025, a total of EUR 19.7 million was invested in fixed assets (H1 2024: EUR 22.6 million). In addition, EUR 2.5 thousand (H1 2024: EUR 2.6 thousand) were recorded as additions to fixed assets for the activation of rights of use for rented land and buildings. The share of capitalized own work within investments amounted to EUR 3.1 million (H1 2024: EUR 2.1 million). The focus of investment activity in the first half of 2025 was on the production sites in the USA, Germany, Poland, Serbia, UK and China. There were no significant disposals.

Current assets amounted to EUR 531.3 million as of June 30, 2025, a slight decrease of 0.9% compared to December 31, 2024 (EUR 535.9 million). The development compared to the end of 2024 was mainly influenced by the following effects: On the one hand, there was a noticeable increase in trade accounts receivable as of June 30, 2025 (EUR 183.4 million) compared to the end of December 2024 (EUR 159.4 million). Other financial assets (June 30, 2025: EUR 7.0 million; December 31, 2024: EUR 6.1 million) and other non-financial assets (June 30, 2025: EUR 28.1 million; December 31, 2024: EUR 20.0 million) also increased compared to the end of 2024.

On the other hand, a reduction in inventories (June 30, 2025: EUR 199.2 million; Dec. 31, 2024: EUR 219.9 million) and the decrease in cash and cash equivalents as of the reporting date of the current half-year under review (June 30, 2025: EUR 110.5 million; Dec. 31, 2024: EUR 127.1 million) due to the payment of the dividend to the shareholders of NORMA Group SE had a reducing effect on current assets. A detailed reconciliation of the change in cash and cash equivalents can be found in the Consolidated Statement of Cash Flows CONDENSED NOTES. The share of current assets in total assets remained unchanged at 39.3% as of the end of June 2025 (December 31, 2024: 37.3%).

 

Equity ratio

Equity amounted to EUR 648.4 million as of June 30, 2025 (December 31, 2024: EUR 721.4 million), 10.1% lower than the figure at the end of 2024. This is due in particular to the significant decrease in other reserves due to negative currency translation differences (EUR -61.5 million) and the dividend payment of EUR 12.7 million, whereas the positive result for the period of EUR 1.3 million in the first half of 2025 increased equity slightly. The equity ratio was 47.9% (Dec. 31, 2024: 50.2%).

 

Financial liabilities

NORMA Group’s financial liabilities decreased by 2.4% to EUR 445.1 million as of June 30, 2025, compared to the end of 2024 (December 31, 2024: EUR 456.3 million). This change was primarily driven by cash-neutral currency effects on foreign currency loans and positive interest rate developments, which favored a reduction in loan liabilities. In addition, lease liabilities decreased - on the one hand due to cash-neutral currency effects and on the other hand due to the disposal of rights of use that were not offset by the addition of new rights.  CONDENSED NOTES

Long-term debt totaled EUR 431.9 million as of June 30, 2025 and was 5.2% lower than at the end of 2024 (December 31, 2024: EUR 455.8 million).

Current liabilities amounted to EUR 273.3 million as of June 30, 2025, an increase of 5.3% compared to the end of 2024 (December 31, 2024: EUR 259.5 million).

The share of long-term debt in total assets as of the end of June 2025 was 31.9% (December 31, 2024: 31.7%), while short-term debt accounted for 20.2 (December 31, 2024: 18.1%).

 

Net debt

Net debt increased from EUR 329.2 million at the end of 2024 to EUR 334.6 million as of June 30, 2025. This represents an increase of 1.7%, or EUR 5.5 million. A detailed reconciliation of the change in net debt can be found in the CONDENSED NOTES.

Gearing (net debt to equity) remained unchanged at 0.5 as of June 30, 2025 (December 31, 2024: 0.5). Leverage (net debt excluding hedging instruments in relation to EBITDA for the last twelve months) increased to 2.5 as of June 30, 2025 (December 31, 2024: 2.1).

 

Financial position

 

Group-wide financial management

A detailed overview of NORMA Group’s general financial management is provided in the ANNUAL REPORT 2024.

 

Net operating cash flow

Net operating cash flow in the current reporting period was EUR 34.7 million, a noticeable decrease compared to the same period last year (H1 2024: EUR 41.2 million). This development is mainly attributable to significantly lower EBITDA compared to the previous year (H1 2025: EUR 64.3 million; H1 2024: EUR 81.4 million). On the other hand, a lower increase in (trade) working capital compared to the end of 2024 (H1 2025: EUR 13.1 million; H1 2024: EUR 19.7 million) relative to EBITDA supported the net operating cash flow, as did a sequential prioritization of investment activities from operating activities (H1 2025: EUR 16.5 million; H1 2024: EUR 20.5 million).

 

Cash flow from operating, investing and financing activities

Cash flow from operating activities amounted to EUR 29.3 million in the first half of 2025, significantly below the figure for the corresponding period last year (H1 2024: EUR 47.0 million). Cash flow from investing activities reached EUR -18.7 million in the first six months of 2025 (H1 2024: EUR -32.5 million) and includes net cash outflows for the acquisition of intangible assets and property, plant and equipment and, to a lesser extent,

proceeds from the sale of property, plant and equipment. Cash flow from financing activities amounted to EUR -20.1 million in the first half of 2025 (H1 2024: EUR -29.4 million). This mainly includes the payment of the dividend to the shareholders of NORMA Group SE, as well as interest payments, net changes from the payment and repayment of loans and repayments of lease liabilities. For further information, see section CONDENSED NOTES.