Earnings, Assets, and Financial Position

The following discussion of non-recurring effects, revenue and earnings performance, and segment reporting takes into account the classification of the Water Management business as a discontinued operation². Further information can be found in the section CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS.

For purposes of long-term comparison and to facilitate a better understanding of business performance, NORMA Group adjusts earnings for certain expenses and income arising from completed M&A transactions for management purposes. In addition, adjustments have been made since 2025 for costs as part of the global transformation that began in the 2025 fiscal year. This transformation program gave rise mainly to expenses for severance payments under the restructuring measures, related consulting costs, and expenses associated with the relocation of production. Adjustments are made in accordance with the management approach in segment reporting. Hence, the following adjusted results reflect the Management Board’s perspective. More information on adjustments can be found in the section CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS.

 

Adjustments

In the period January to June 2026, adjustments were made within EBITDA (earnings before interest, taxes, depreciation of property, plant, and equipment, and amortization of intangible assets) amounting to EUR 4.2 million (H1 2025: EUR 2.2 million). These relate to non-recurring expenses associated with the organizational transformation. Within EBITA, adjustments of depreciation of property, plant, and equipment from purchase price allocations in the amount of EUR 0.3 million were recognized (H1 2025: EUR 0.3 million). Within EBIT, amortization of intangible assets from purchase price allocations amounting to EUR 2.2 million (H1 2025: EUR 2.6 million) were adjusted.

Fictitious income taxes resulting from the adjustments are calculated using the tax rates of the local companies concerned and considered in the adjusted result after taxes.

² Any exceptions are identified accordingly.

 

Earnings position

 

Revenue development in the first half of 2026

In the first six months of 2026, NORMA Group generated Group revenue of EUR 420.5 million, which was thus 3.2% below the prior year’s figure (H1 2025: EUR 434.3 million). Currency effects negatively impacted revenue development by 2.5%. Adjusted for this, Group revenue fell by 0.6%.

This decline in Group revenue was largely due to the ongoing challenging market environment, especially in the mobility sector. While demand in the Mobility & New Energy strategic business unit declined, the Industry Applications strategic business unit performed well in the first half of 2026 and partially offset the decline.

In the second quarter of 2026, Group revenue amounted to EUR 211.8 million and was thus 0.6% below the prior year’s value (Q2 2025: EUR 213.1 million). Adjusted for currency effects (-0.6%), revenue growth was 0.1% and thus represented a sequential improvement compared with the first quarter of 2026 (Q1 2026: EUR -1.3% million).

 

Industry Applications: Revenue grows in the first six months of 2026 by 3.2%

Revenue in the Industry Applications business unit in the first half of 2026 amounted to EUR 136.9 million and was thus 3.2% above the prior year’s level (H1 2025: EUR 132.6 million). Adjusted for currency effects (-3.4%), Industry Applications generated revenue growth of 6.6%. This growth was driven in particular by robust demand in strategic industrial applications. The prior-year figure was adversely affected by logistics delays associated with the introduction of an ERP system at a site in Germany.

In the second quarter of 2026 revenue in the Industry Applications business unit rose year-on-year by 7.0%. Adjusted for currency effects (-1.3%), revenue grew by 8.4%.

 

Mobility & New Energy: Revenue below the prior-year level due to prevailing market uncertainty

In the first six months of 2026, the Mobility & New Energy business unit generated revenue of EUR 283.6 million, which was 6.0% below the prior year’s level (H1 2025: EUR 301.7 million). Adjusted for currency effects (-2.2%), revenue declined by 3.8%. This was due to the challenging market environment that persisted in the mobility sector, particularly subdued demand in the global automotive industry.

In the second quarter of 2026, revenue in Mobility & New Energy was 4.0% below the prior year’s figure. Adjusted for currency effects (-0.3%), revenue declined by 3.7%.

 

(Adjusted) cost of materials ratio

The cost of materials in the first half of 2026 was EUR 183.6 million and thus 8.0% below the prior-year figure (H1 2025: EUR 199.7 million). The cost of materials as a percentage of revenue – excluding changes in inventories – improved in the first half of 2026 to 43.7% (H1 2025: 46.0%). This was due in particular to measures aimed at optimizing the cost of materials and energy as well as the pricing initiatives implemented as part of the NewNORMA transformation. The cost of materials as a percentage of total operating performance (revenue plus changes in inventories and other own work capitalized) also improved to 43.6% in the first six months (H1 2025: 45.6%). In the first half of 2026, the reduction in inventories of finished goods and work in progress of EUR 1.0 million slightly increased the cost of materials ratio (H1 2025: buildup of inventories of EUR 1.1 million).

In the first half of 2026, the cost of materials was adjusted for expenses of EUR 0.2 million related to the transformation initiated in 2025. These expenses relate to inventory write-downs associated with production relocations. Adjusted cost of materials amounted to EUR 183.4 million, 8.2% below the prior-year figure (H1 2025: EUR 199.7 million). The adjusted cost of materials as a percentage of revenue improved to 43.6% in the first half of 2026 (H1 2025: 46.0%). The adjusted cost of materials ratio based on total operating performance (revenue plus changes in inventories and other own work capitalized) was also lower in the six months period of 2026, at 43.6% (H1 2025: 45.6%).

In the second quarter of 2026, the cost of materials amounted to EUR 92.2 million (Q2 2025: EUR 101.8 million). The cost of materials as a percentage of revenue improved to 43.5% (Q2 2025: 47.8%). The cost of materials as a percentage of total operating performance was also 43.5% (Q2 2025: 46.4%).

No expenses were adjusted within the cost of materials in the second quarter of 2026. The adjusted cost of materials, the adjusted cost of materials as a percentage of revenue, and the adjusted cost of materials as a percentage of total operating performance thus corresponded to the respective reported figures.

 

(Adjusted) gross profit and (adjusted) gross margin

In the first six months of 2026, NORMA Group generated gross profit (revenue less the cost of materials and changes in inventories plus other own work capitalized) of EUR 237.1 million. Despite the slight decline in Group revenue, gross profit remained virtually at the prior-year level (H1 2025: 237.9 million). This was primarily attributable to the significantly lower cost of materials. The gross margin (based on revenue) improved to 56.4% (H1 2025: 54.8%) due to a reduced cost of materials ratio.

In the first half of 2026, gross profit was adjusted for expenses of EUR 0.2 million recognized within the cost of materials. The adjusted gross profit therefore amounted to EUR 237.4 million (H1 2025: 237.9 million). The adjusted gross margin was 56.5% (H1 2025: 54.8%).

In the scond quarter of 2026, gross profit amounted to EUR 119.6 million, representing an increase of 1.7% compared with the prior-year quarter (Q2 2025: EUR 117.6 million). The gross margin improved to 56.4% (Q2 2025: 55.2%). The key driver here was the improvement in the cost of materials ratio. As no expenses requiring adjustment were included in the cost of materials in the second quarter of 2026, adjusted gross profit and the adjusted gross margin corresponded to the reported figures.

 

(Adjusted) personnel cost ratio

As of June 30, 2026, NORMA Group employed a total of 6,077 people worldwide. Of these, 4,706 employees were permanent staff. The core workforce declined compared with June 30, 2025 (4,893 employees) and was roughly the same as the level at the end of 2025 (4,709 employees).

In the first six months of 2026, employee benefit expenses amounted to EUR 142.1 million and were thus 1.6% below the corresponding prior-year figure (H1 2025: EUR 144.4 million). This improvement was driven by the reduction in the core workforce and, in particular, by the efficiency measures implemented as part of the NewNORMA transformation. However, due to the sharper decline in revenue, the personnel cost ratio increased to 33.8% in the first half of 2026 (H1 2025: 33.2%).

In the six months period of 2026, personnel expenses were adjusted for expenses of EUR 3.6 million related to the NewNORMA transformation initiated in 2025. Adjusted employee benefit expenses amounted to EUR 138.5 million, 3.8% below the prior-year figure (H1 2025: EUR 144.0 million). The adjusted personnel cost ratio improved to 32.9% (H1 2025: 33.2%).

In the second quarter of 2026, personnel expenses increased by 0.4% to EUR 70.8 million (Q2 2025: EUR 70.5 million). The personnel cost ratio increased to 33.4% (Q2 2025: 33.1%). Expenses of EUR 1.9 million were adjusted within personnel expenses. Adjusted personnel expenses thus amounted to EUR 69.1 million (Q2 2025: EUR 70.1 million). The adjusted personnel cost ratio improved to 32.6% (Q2 2025: 32.9%). CONSOLIDATED INTERIM FINANCIAL STATEMENTS

 

(Adjusted) other operating income and expenses

In the first half of 2026, the balance of other operating income and expenses totaled EUR -62.6 million and was thus 11.7% below the prior-year figure (H1 2025: EUR -70.8 million). The ratio of other operating expenses and income as a percentage of revenue improved to 14.9% in the reporting period (H1 2025: 16.3%).

Other operating income amounted to EUR 12.1 million (H1 2025: EUR 8.5 million). The main components were foreign exchange gains from operating activities amounting to EUR 4.8 million (H1 2025: EUR 2.0 million) and income from the reversal of liabilities and provisions (H1 2026: EUR 3.7 million; H1 2025: EUR 2.3 million), especially in connection with personnel and supplier-related liabilities. CONSOLIDATED INTERIM FINANCIAL STATEMENTS

In the first six months of 2026, other operating expenses were EUR 74.7 million and thus 5.9% below the prior year’s figure (H1 2025: EUR 79.3 million). This was mainly due to lower expenditure for IT and telecommunications (H1 2026: EUR 10.8 million; H1 2025: EUR 13.0 million) as well as lower expenditure for consulting and marketing (H1 2026: EUR 8.1 million; H1 2025: EUR 9.1 million) and falling freight costs (H1 2026: EUR 9.7 million; H1 2025: EUR 10.7 million). In addition, other administrative expenses declined slightly (H1 2026: EUR 2.8 million; H1 2025: EUR 3.2 million). Expenses for temporary employees and other personnel-related expenses remained at the same level as in the prior year (H1 2026: EUR 18.5 million; H1 2025: EUR 18.5 million). Slightly higher write-offs and impairment losses on trade accounts receivable had an offsetting effect (H1 2026: EUR 1.2 million; H1 2025: EUR 1.0 million).

In the first six months of 2026, other operating income and expenses were adjusted for expenses of EUR 0.4 million related to the transformation launched in 2025. The balance of adjusted other operating income and expenses thus totaled EUR -62.2 million and was 10.0% below the prior-year figure (H1 2025: EUR -69.1 million). The ratio of adjusted other operating expenses and income as a percentage of revenue improved in the reporting period to 14.8% (H1 2025: 15.9%).

In the second quarter of 2026, the balance of other operating income and expenses totaled EUR -33.3 million and thus improved by 5.4% compared with the prior-year figure (Q2 2025: EUR -35.2 million). The ratio as a percentage of revenue was 15.7% (Q2 2025: 15.5%). In Q2 2026, other operating income and expenses were adjusted for expenses of EUR 2.0 million related to the transformation launched in 2025. The balance of adjusted other operating income and expenses thus amounted to EUR -31.4 million and improved by 7.3% compared with the prior-year figure (Q2 2025: EUR -33.8 million). As a percentage of revenue, this amounted to 14.8% (Q2 2025: 15.9%).

 

(Adjusted) operating profit

In the first half of 2026, EBIT amounted to EUR 7.2 million, a significant improvement compared with the prior-year level (H1 2025: EUR -3.0 million). The decline in revenue had a negative impact on EBIT in the current reporting period. However, the decrease was more than offset by a noticeable improvement in the cost base. This improvement was driven in particular by the lower cost of materials, the improved balance of other operating income and expenses, and lower employee benefit expenses. The EBIT margin improved to 1.7% (H1 2025: -0.7%).

Adjustments within EBIT in the first six months of 2026 totaled EUR 6.7 million and included expenses related to the global transformation launched in the 2025 fiscal year (EUR 4.2 million) and depreciation and amortization of tangible and intangible assets arising from purchase price allocations (EUR 2.6 million). Adjusted EBIT thus amounted to EUR 14.0 million and improved significantly compared with the prior-year level (H1 2025: EUR 2.1 million). The adjusted EBIT margin improved to 3.3% in the first six months of 2026 (H1 2025: 0.5%) and was thus within the range of 2% to 4% forecast for the 2026 fiscal year.

In the second quarter of 2026, EBIT amounted to EUR 2.7 million (Q2 2025: EUR -0.8 million). The EBIT margin improved to 1.3% (Q2 2025: -0.4%). In Q2 2026, EBIT was adjusted for expenses related to the global transformation launched in the 2025 fiscal year and depreciation and amortization of tangible and intangible assets arising from purchase price allocations totaling EUR 4.9 million. Adjusted EBIT thus amounted to EUR 7.6 million (Q2 2025: EUR 2.3 million). The adjusted EBIT margin improved to 3.6% (Q2 2025: 1.1%).

 

Financial result

In the first half of 2026, the financial result amounted to EUR 0.1 million, a substantial improvement year-on-year (H1 2025: EUR -9.0 million.) CONSOLIDATED INTERIM FINANCIAL STATEMENTS The main drivers were higher financial income of EUR 7.7 million. (H1 2025: EUR 2.0 million), in particular due to increased interest income on short-term deposits with banks due to higher liquidity positions following the sale of the Water Management business. In addition, financing expenses fell to EUR -7.6 million (H1 2025: EUR -10.9 million), particularly due to lower liabilities to banks following the debt repayment in the first quarter of 2026.

In the second quarter of 2026 the financial result improved to EUR 2.2 million (Q2 2025: EUR -4.4 million).

 

 

(Adjusted) tax rate and (adjusted) profit for the period

Based on earnings before taxes (EBT) of EUR 7.3 million in the first six months of 2026 (H1 2025: EUR -12.0 million), income tax expense amounted to EUR 7.6 million (H1 2025: EUR 6.1 million). The tax rate in the first six months of 2026 was 104.2% (H1 2025: 50.7%). The exceptionally high tax rate was primarily attributable to the non-recognition of deferred tax assets on loss carryforwards and non-creditable foreign withholding taxes.

In the first half of 2026, income taxes were adjusted for the tax effects of adjustments related to the NewNORMA transformation launched in the 2025 fiscal year and depreciation and amortization of tangible and intangible assets arising from purchase price allocations, totaling EUR 1.5 million. Adjusted income tax expense amounted to EUR 9.1 million (H1 2025: EUR 7.5 million). The adjusted tax rate in the first six months of 2026 was 64.7% (H1 2025: 108.6%).

The significant improvement in earnings before taxes and the lower tax rate compared with the prior year resulted, despite the continued high tax burden, in a significantly improved profit for the period in the first half of 2026 of EUR -0.3 million (H1 2025: EUR -18.1 million). In the first six months of 2026, adjustments at the level of profit for the period totaled EUR 5.3 million and corresponded to the related after-tax effects of the adjustments at EBIT level. Adjusted profit for the period improved significantly in the first half of 2026 to EUR 5.0 million (H1 2025: -14.3). The weighted average number of shares used to calculate adjusted earnings per share decreased in the seond quarter of 2026 as a result of the completed public share buyback offer, since repurchased treasury shares are excluded from the calculation of adjusted earnings per share. Based on a weighted average in first half of 2026 of 30,401,659 shares (Q1 2026: 31,862,400 shares; Q2 2026: 28,956,970 shares), adjusted earnings per share were EUR 0.16 (H1 2025: EUR -0.45).

Net profit for the period in Q2 2026 amounted to EUR 0.1 million (Q2 2025: EUR -8.4 million). Profit for the period was adjusted for expenses and depreciation and amortization, net of taxes, totaling EUR 3.9 million. Adjusted profit for the period improved in Q2 2026 to EUR 4.0 million (Q2 2025: EUR -5.9 million). Adjusted earnings per share for the period from April to June 2026 amounted to EUR 0.14 (Q2 2025: EUR -0.19).

 

Development of sales and earnings in the segments

The share of Group revenue generated abroad in the first half of 2026 was 86.4%, which was almost at the same level as in the prior year (H1 2025: 86.3%).

 

EMEA region

External revenue in the EMEA region for the firs half of of 2026 amounted to EUR 227.1 million and was thus3.4% below the level of the prior year (H1 2025: EUR 235.1 million). Adjusted for currency effects (-0.6%), external revenue declined by 2.8%.

In the second quarter of 2026, NORMA Group generated revenue of EUR 112.9 million in the EMEA region, which represents a decline of 3.9% compared with the same quarter of the prior year (Q2 2025: EUR 117.5 million). Adjusted for currency effects (-0.5%), revenue declined in the second quarter of 2026 by 3.4%.

During the January to June period 2026, sales in Industry Applications remained close to the same level as in the prior year at EUR 67.1 million (H1 2025: EUR 66.9 million), while sales in the Mobility & New Energy business unit remained below the prior year’s figure at EUR 160.0 million (H1 2025: EUR 168.2 million). This was due in particular to ongoing weak demand in the European automotive industry.

The EMEA region’s share of Group revenue in the first six months of 2026 was slightly below the prior year’s level at 54% (H1 2025: 54%).

Adjusted EBIT for the EMEA region in the first half of2026 improved to EUR 6.3 million (H1 2025: EUR -3.8 million). The adjusted EBIT margin rose accordingly to 2.6% (H1 2025: -1.5%). The significant improvement compared with the prior-year period is attributable to the measures implemented as part of the NewNORMA transformation to improve the cost base and also to the temporary additional expenses incurred in the first half of 2025 in connection with the implementation of the ERP at the Maintal site.

In the second quarter of 2026, adjusted EBIT improved to EUR 2.7 million in the EMEA region (Q2 2025: EUR -1.8 million). The adjusted EBIT margin rose to 2.2% (Q2 2025: -1.5%).

Investments in the EMEA region during the first six months of 2026 were EUR 5.9 million (H1 2025: EUR 6.4 million). Investment was focused on the sites in Germany, Serbia, the UK, and Poland.

 

Americas region

External revenue in the Americas region in the first half of 2026 reached EUR 135.4 million and was thus 2.0% below the level of the prior year (H1 2025: EUR 138.2 million). Negative currency effects of 5.9%, primarily related to the US dollar, had a significant impact on revenue development. Adjusted for these currency effects, external revenue rose by 3.9%.

In the second quarter of 2026, revenue totaled EUR 70.4 million, representing an increase of 8.0% compared with the same quarter of the prior year (Q2 2025: EUR 65.2 million). Adjusted for currency effects (-2.0%), revenue growth in the second quarter of 2026 was 10.0%.

While Industry Applications in the Americas region increased revenue to EUR 52.2 million (H1 2025: EUR 50.0 million), sales in the Mobility & New Energy business unit remained under the level of the prior year at EUR 83.2 million (H1 2025: EUR 88.2 million). This was mainly due to negative currency effects. In the first six months of 2026, Mobility & New Energy revenue adjusted for currency effects remained almost constant compared with the same period of the prior year.

In the first six months of 2026, the Americas region’s share of Group revenue was 32% (H1 2025: 32%).

Adjusted EBIT for the Americas region rose in the first half of 2026 to EUR 7.2 million (H1 2025: EUR 4.3 million). The adjusted EBIT margin improved accordingly to 5.2% (H1 2025: 3.1%). Despite the reported revenue being negatively affected by currency effects, the substantial improvement in the cost base led to higher profitability year-on-year.

In the second quarter of 2026, adjusted EBIT improved to EUR 4.2 million in the Americas region (Q2 2025: EUR 1.6 million). The adjusted EBIT margin rose to 5.8% (Q2 2025: 2.4%).

Investments in the Americas region during the first half of 2026 were EUR 6.8 million (H1 2025: EUR 4.2 million). They particularly focused on locations in the US.

 

Asia-Pacific region

In the first six months of 2026, external revenue in the Asia-Pacific region was EUR 58.0 million and thus 5.0% below the prior year’s figure (H1 2025: EUR 61.0 million). Negative currency effects of 2.3% had a reducing impact. Adjusted for these currency effects, external revenue declined by 2.7%.

In the second quarter of 2026, the Asia-Pacific region generated revenue of EUR 28.5 million. This corresponds to a decrease of 6.1% compared with the same quarter of the prior year (Q2 2025: EUR 30.4 million). Positive currency effects of 1.7% supported revenue performance. Adjusted for these currency effects, revenue declined by 7.8%.

While Industry Applications revenue in the Asia-Pacific region increased in H1 to EUR 17.6 million (H1 2025: EUR 15.8 million), sales in Mobility & New Energy remained lower than the prior year at EUR 40.4 million (H1 2025: EUR 45.3 million). This was due in particular to the ongoing subdued demand in China’s automotive sector.

In the first six months of 2026, the Asia-Pacific region’s share of Group revenue was 14% (H1 2025: 14%).

Adjusted EBIT in the Asia-Pacific region in the first half of 2026 was EUR 5.6 million (H1 2025: EUR 4.7 million). The adjusted EBIT margin improved to 9.2% (H1 2025: 7.3%). Despite the decline in revenue, the improvement in the cost base led to higher profitability year-on-year.

In the second quarter of 2026, adjusted EBIT fell slightly in the Asia-Pacific region to EUR 2.5 million (Q2 2025: EUR 2.6 million). The adjusted EBIT margin improved to 8.3% (Q2 2025: 7.9%).

In the Asia-Pacific region, investments in the first six months of 2026 amounted to EUR 2.0 million (H1 2025: EUR 1.8 million). The investments were primarily made at the plants in China and India.

 

Asset situation

 

Total assets

As of June 30, 2026, total assets amounted to EUR 1,230.7 million and were thus 1.6% below the level at the end of 2025 (Dec 31, 2025: EUR 1,250.7 million).

 

Assets

Non-current assets increased slightly as of June 30, 2026 to EUR 430.5 million (+0.5% compared with Dec. 31, 2025). The share of the total assets increased to 35.0% (Dec. 31, 2025: 34.3%). Investments in fixed assets in the first half of the year were EUR 14.1 million (H1 2025: EUR 12.9 million).

Current assets decreased to EUR 800.2 million as of June 30, 2026 (-2.7% compared with Dec. 31, 2025), mainly due to the derecognition of the assets of the divested Water Management business. By contrast, cash and cash equivalents increased to EUR 412.4 million (Dec. 31, 2025: EUR 85.3 million), particularly due to the cash proceeds from the sale of the Water Management business, which were used in part to repay financial liabilities. Current assets as a percentage of total assets decreased to 65.0% at the end of June 2026 (Dec. 31, 2025: 65.7%).

 

Equity ratio

Equity as of June 30, 2026, was EUR 820.9 million (Dec. 31, 2025: EUR 564.1 million), thus increasing by 45.5% compared with the figure at year-end 2025. The increase in equity was attributable primarily to the positive profit for the period (including the discontinued operation) of EUR 311.0 million in the first half of 2026, which resulted mainly from the gain on the sale of the Water Management business. This was partially offset, in particular, by the acquisition of treasury shares totaling EUR 53.1 million as part of the public share buyback offer completed in the second quarter of 2026. The equity ratio rose significantly to 66.7% (Dec. 31, 2025: 45.1%).

 

Financial liabilities

As of June 30, 2026, NORMA Group’s financial liabilities were EUR 108.5 million and thus 72.3% below the figure at year-end 2025 (Dec. 31, 2025: EUR 392.2 million). This was mainly due to the net repayment of financial liabilities totaling EUR 288.3 million in the first six months of  2026 using the proceeds from the sale of the Water Management business. Furthermore, lower lease liabilities and the decline in other financial liabilities had a reducing effect on financial liabilities. CONSOLIDATED INTERIM FINANCIAL STATEMENTS

Non-current liabilities as of June 30, 2026, were EUR 71.0 million and thus 11.2% above year-end level 2025 (Dec. 31, 2025: EUR 63.9 million).

Current liabilities as of June 30, 2026, were EUR 338.7 million, a decrease of 2025 (Dec. 31, 2025: EUR 622.7 million) compared with the end of 45.6%. The decrease was primarily attributable to the repayment of short-term financial liabilities in the first half of 2026, funded by the proceeds from the sale of the Water Management business.

Non-current liabilities as a share of total assets as of the end of June 2026 were 5.8% (Dec. 31, 2025: 5.1%), while current liabilities accounted for 27.5% (Dec.31, 2025: 49.8%).

 

Net liquidity / net debt

The net debt position of EUR 316.1 million at year-end 2025 changed to a net liquidity position of EUR 303.9 million as of June 30, 2026, representing an improvement of EUR 620.0 million. A detailed reconciliation of the change in net debt is presented in the section CONSOLIDATED INTERIM FINANCIAL STATEMENTS.

Gearing (net liquidity / net debt in relation to equity) as of June 30, 2026, was -0.4 (Dec 31, 2025: 0.6). Leverage (net liquidity / net debt excluding hedging instruments in relation to EBITDA of the last 12 months) significantly improved as of June 30, 2026, to -3.0 (Dec. 31, 2025: 2.5).

 

Financial position

 

Group-wide financial management

 

Net operating cash flow

A detailed overview of NORMA Group’s general financial management is provided in the ANNUAL REPORT 2025.

In the first six months of 2026, net operating cash flow, which continues to include contributions from the discontinued Water Management business, amounted to EUR -13.1 million, and was thus substantially lower than the prior year’s figure (H1 2025: EUR 34.7 million). This was due in particular to the lower adjusted EBITDA (H1 2026: EUR 39.8 million; H1 2025: EUR 64.3 million) as well as non-recurring effects in trade working capital related to the disposal of the Water Management business. In addition, investments from operating activities in the amount of EUR 13.6 million (H1 2025: EUR 16.5 million) affected net operating cash flow.

In the second quarter of 2026, net operating cash flow amounted to EUR 6.6 million (Q2 2025: EUR 31.6 million). While seocond quarter of 2026 no longer included effects from the Water Management business sold in February 2026, the prior-year figure still included contributions from that business to net operating cash flow.

 

Cash flow from operating, investing, and financing activities

The cash flow from operating activities in first six months of 2026 was EUR -86.0 million and thus significantly below the prior year’s figure (H1 2025: EUR 29.3 million). This was due in particular to the absence of effects from the sold Water Management business that had been included in the prior year’s figure.

Cash flow from investing activities in the first six months of 2026 was EUR 749.9 million (H1 2025: EUR -18.7 million) and includes a net cash inflow of EUR 821.5 million from the disposal of the Water Management business (H1 2025: EUR 0.0 million). This was countered by net cash outflows from the acquisition of financial instruments in the amount of EUR 57.0 million (H1 2025: EUR 0.0 million) and from the acquisition of intangible assets and property, plant and equipment in the amount of EUR 14.7 million (H1 2025: EUR -19.2 million).

Cash flow from financing activities in first half of 2026 was EUR -350.5 million (H1 2025: EUR -20.1 million). Key factors were the repayment of financial liabilities using the proceeds from the disposal of the Water Management business as well as the acquisition of treasury shares as part of a public share buyback offer. In addition, interest payments and repayments of lease liabilities impacted the cash flow from financing activities. Further information is presented in the CONSOLIDATED INTERIM FINANCIAL STATEMENTS.