The first half of 2026 marked an important milestone on our journey toward NewNORMA. With the successful sale of our Water Management business in February, we completed a key step in our strategic realignment. This laid the foundation for an even sharper future focus on profitable growth in our two strategic business units, Industry Applications and Mobility & New Energy.
At the same time, we have further strengthened our position in attractive growth areas. Applications related to data centers, heat pumps, and battery energy storage systems offer attractive long-term prospects. With our technological expertise and close customer relationships, we are well positioned to benefit from these developments and pursue new business opportunities.
In the first half of 2026, we delivered a solid operational performance. On a currency-adjusted basis, revenue was virtually at the prior-year level. At the same time, we continued to improve our profitability. The adjusted gross margin increased significantly, while the adjusted personnel cost ratio continued to decline. Our Industry Applications business unit performed particularly well, benefiting from strong demand across numerous customer projects and strong new-business performance.
The sale of the Water Management business significantly strengthened our financial position. In the first six months of 2026, we reduced our financial liabilities by around EUR 290 million and had a net liquidity position at the end of the reporting period. We also successfully completed our first public share buyback offer. The resolutions adopted by the Annual General Meeting on July 1, 2026, created the additional conditions required to return excess capital to our shareholders. In total, around EUR 260 million is to be returned to our shareholders.
At the same time, we are systematically advancing the implementation of NewNORMA. We have further simplified our organization, improved the cost structure, and sharpened our commercial focus. Moreover, we are making targeted investments in attractive growth areas within our two strategic business units. Our goal is clear: to combine sustainable, profitable growth with a high level of operational excellence, thereby creating long-term value for customers, employees, and shareholders.
The measures initiated as part of NewNORMA are increasingly delivering results. Our key financial performance indicators have developed in line with our expectations in the first half of the year. We therefore confirm our forecast for the 2026 fiscal year.
Today, NORMA Group is more focused and financially stronger, with a clearer strategic direction than it had a year ago. Our strong market positions, ability to innovate, and, above all, the dedication of our employees give us confidence that we can continue our Company’s successful transformation and create sustainable value for all stakeholders.
We would like to thank our employees, customers, and business partners, as well as you, our shareholders, for your trust and support.
Sincerely yours,
The Management Board
Birgit Seeger
Chief Executive Officer
Dr. Daniel Heymann
Member of the Management Board (COO)
Legend
These contents are part of the Non-financial Group Report and were subject to a separate limited assurance examination.