Normet Group: Record high order intake in 2025, profitability improved towards the end of the year

Unless otherwise stated, the comparison figures in brackets refer to the corresponding period of the previous year.

Highlights of October−December 2025

• Order intake increased by 55.6% to EUR 160 million (103)
• Net sales increased by 7.2% to EUR 145 million (136). At comparable exchange rates, net sales rose by 13.4%
• Comparable operating profit amounted to EUR 21 million (20), representing 14.5% (15.1) of net sales.

Highlights of January−December 2025

• Order intake increased by 24.7% to EUR 566 million (454).
• The order backlog of the Equipment business line stood at all time high at EUR 164 million (79) at the end of the period.
• Net sales decreased by 2.3% to EUR 471 million (482). At comparable exchange rates, net sales increased by 2.1%
• Comparable operating profit amounted to EUR 39 million (56), representing 8.3% (11.6) of net sales.
• Cash flow from operating activities was EUR 37.4 million (56.1).
• Gearing stood at 87.4% (62.8). The redemption of the hybrid bond increased the gearing.

Chief Executive Officer Ed Santamaria comments:

“The year 2025 was twofold for Normet: we achieved a record high order intake, fueled by the robust demand in mining. At the same time our sales and profitability were lagging our expectations due to both external and internal reasons. Despite the headwinds, we continued to launch new products to support our customers, improve safety performance and announced a transformation program to improve efficiency, profitability and secure investment capability for future growth.

The business environment was favourable for us throughout the year. Customer and investment activity in the mining industry were robust and the interest in electrification and automation solutions accelerated further.

Normet’s total order intake reached EUR 566 million, showing an increase of circa 25%, with majority of those being for underground mining equipment. In addition, we managed to win several important service agreements and Xrock portfolio orders. I’m particularly pleased that many of the equipment orders last year came with long-term service agreements. We also secured two long-term contracts for Normet rock reinforcement products in Canada and Finland.

Actions to address profitability in place

While order intake showed robust market demand, our profitability performance was clearly disappointing in 2025 as comparable operating profit fell by about 30% to EUR 39 million. This was the outcome of several reasons, mainly because we could not turn those major orders into sales in a timely manner as planned, deficiencies in managing currency headwinds and inefficiencies in internal operations.

To address this and secure our future growth and investment capability, we have initiated a transformation project to improve efficiency and profitability. Furthermore, the program includes the optimization of our current operating model and an annual cost savings target of about EUR 20 million by the end of 2026. I am confident that together with Normet’s senior management team, we will be able to improve our performance.

On a positive note, our performance clearly improved towards the end of the year, driven by strong recovery in equipment delivery volumes and better cost efficiency. In the fourth quarter, our net sales rose by 7.2% to EUR 145 million and comparable operating profit increased by 3.1% to EUR 21 million, representing a margin of 14.5%.

Strategic review

Normet’s business and strategy is fundamentally about working closely and directly with our customers, understanding their processes and value chain. Our aim is to help to make their operations safer as well as more productive, efficient and sustainable. Some 90% of our business is conducted directly with our end customers.

Following a strategic review, we narrowed our focus areas for growth to include major mining accounts, services, the Xrock mining business and strategic tunneling markets. We enable our future growth through customer proximity, performance culture, and operational efficiency. We will focus on improved sales capabilities and presence, high-performance, accountable, and customer-focused teams, and an efficient operating model.

Safety first

Safety has always been our number one priority and will remain so. Last year we continued the positive development of recent years and achieved a lost time injury frequency rate (LTIFR) of 1.4, which is the best we have ever recorded. A number of our sites and operations achieved significant injury-free milestones, both internally and externally at customer projects.

In closing, I would like to express my sincere gratitude to our customers, employees, partners and other stakeholders. I highly value this cooperation and your trust in Normet, and I am confident that by continuing to work together we can achieve enhanced safety and sustainability standards and great success in our respective companies.”

Outlook

Demand for Normet’s products and expertise, customer process improvements, services, and consumables is expected to remain at a good level in the medium term.

Market environment

Customer activity and the investment environment in the mining industry continues to be robust. The interest in electrification and automation solutions has been growing steadily and further accelerating. On the contrary, geopolitical uncertainties including tariffs and trade tensions as well as strong currency fluctuations are creating challenges in the operating environment.

Strategy and targets 2026–2028

Normet’s unique position and strengths are based on a combination of advanced technology, solutions and services combined with deep process expertise. The company has built a strong market position, developed trusting customer relationships, and earned a reputation for being a safety-first company with cutting-edge technology and skilled professionals. Normet fosters a culture where employees can thrive, make an impact, and develop themselves.

Normet has conducted a strategic review during 2025. Growth through innovating and expanding around selected customer processes continues to be at the core of Normet’s strategy. Going forward, the company will drive its development through even more focused growth areas.

Growth areas

The strategic focus areas for growth are major underground mining projects, services, the Xrock mining business, and strategic tunnelling markets.

Normet’s technological advancements leverage electrification, automation, and digitalization to deliver safer, cleaner, and more efficient solutions for customers. Normet continuously aims to further improve its customers’ processes and build long-term partnerships.

As an example, reliable breaker boom systems are essential for uninterrupted mining and construction operations. Normet Xrock, one of the exciting newer parts of Normet’s portfolio, offers breaker boom systems from compact mobile equipment to stationary crushing and grizzly operations.

Growth enablers

Normet will enable growth through customer proximity, performance culture, and operational efficiency. This means improved sales capabilities and presence, high-performing, accountable, and customer-focused teams supported through an efficient operating model.

During the last quarter of 2025, Normet initiated a transformation project called SHAPE to improve efficiency and profitability, and to secure investment capability for future growth. Furthermore, the program includes the optimization of the company’s current operating model.

Strategic KPIs

• Strategic key performance indicators for 2026–2028:
• Annual net sales growth of around 15%
• EBITA-margin about 20%
• Continued drive for decarbonization

Financial performance

October-December 2025

Order intake increased by 55.6% to EUR 160 million (103).

Net sales rose by 7.2 percent to EUR 145 million (136). At comparable exchange rates, net sales increased by 13.4 percent. The increase was driven by strong equipment deliveries in the last quarter.

Comparable operating profit rose by 3.1 percent to EUR 21 million (20), or 14.5% (15.1) of net sales. Profitability improved due to strong delivery volumes and better cost efficiency toward the end of the year. However, negative currency effects still weighed on the result, although their impact was less severe than in earlier periods.

January-December 2025

Order intake increased by 24.7 percent to EUR 566 million (454). Especially for the Equipment business line the order intake increased significantly from the previous year, 61.9%, with large orders covering both existing and new customer projects especially in the second and last quarter of the year. Order intake at the Equipment business line increased most in Asia Pacific, but also in Africa, India, Latin America and North America. New orders included the South32 Hermosa project in Arizona, USA, and the Mopani mine in Zambia, among others. Additionally, Normet expanded agreements with Hindustan Zinc Limited in India, Rio Tinto’s Oyu Tolgoi mine in Mongolia, and the Kamoa mine in the Democratic Republic of Congo.

The order backlog of the Equipment business line stood at a record high of EUR 164 million (79).

Net sales fell by 2.3 percent to EUR 471 million (482). At comparable exchange rates, net sales increased by 2.1 percent. Adverse currency effects impacted all business lines.

Net sales in the Equipment business line recovered from the slow first half of the year and accelerated significantly in the second half. While the second half outperformed the previous year, full‑year net sales were still 16.7% lower due to the modest start to the year.

Net sales in the Services business line and the GCCT business line declined by 5.5 percent and 6.7 percent, respectively. Lower activity levels in mid-life and on-site services impacted net sales in the Services business line, whereas weakness particularly in the Indian and Northern European markets burdened the GCCT business line.

Comparable operating profit fell by 30.5 percent to EUR 39 million (56), or 8.3% (11.6) of net sales. Profitability in the Equipment business line was affected by low delivery volumes during the early part of the year. In the Services business line, the sales mix had a somewhat negative effect compared to the previous year. In the GCCT business line, low delivery volumes weighed on profitability. Currency translation and transaction losses had a significant impact across all the business lines. In R&D, costs increased due to the additional investments in the electrification and automation technology.

Cash flow, balance sheet and financing

Cash flow from operating activities was EUR 37.4 million (56.1). The cash flow was negatively impacted by the weaker operational performance, whereas the company’s net working capital slightly improved from the previous year.

Cash flow from investment activities amounted to EUR -17.1 million (-25.4), and cash flow from financing activities was EUR -23.2 million (-25.3). Cash and cash equivalents amounted to EUR 37.8 million (42.0) at the end of the reporting period.

Normet’s total assets amounted to EUR 525 million as of 31 December 2025 (503 million as of 31 December 2024) and equity EUR 170 million (200 million). The equity decreased due to the redemption of the hybrid bond.

Interest-bearing net liabilities amounted to EUR 149 million (126) at the end of the reporting period, while gearing was 87.4% (62.8) and the equity ratio was 34.2% (41.0). Gearing increased primarily due to the redemption of the hybrid bond in June 2025.

On 19 June 2025, Normet redeemed a 30-million-euro hybrid bond issued on 19 May 2023. On the redemption date, Normet paid the holders of the capital securities a redemption price equal to the principal amount of the note together with any accrued interest up to, but excluding, the redemption date.

Liquidity

The company’s liquidity remains good. In January 2025, to refinance existing loans, Normet Group Oy signed a new three-year financing agreement totalling EUR 200 million, with an option to extend its maturity by 1-2 years depending on the facility. The covenants and the covenant levels remained unchanged from those of the previous agreement.

The facility’s financial covenants are tied to factors such as the Group’s net debt-to-EBITDA ratio and equity ratio. The covenants do not directly restrict the use of capital but may affect the Group’s financing in the future or, accordingly, require negotiations with the financing entity on certain aspects.

On 31 December 2025, the Group had approximately EUR 35 million of undrawn credit facilities at its disposal.

New products

World’s first autonomous rock-breaking system, Xrock Autobreaker

The Xrock Autobreaker eliminates the need for human presence at one of the most hazardous intervention points in underground mining while ensuring continuous, reliable rock flow.

Expansion of battery-electric SmartDrive® offering

Normet continues to lead the industry in underground electrification. The battery-electric SmartDrive® was expanded with two new platforms, covering a wide range of applications and needs, from compact and agile solutions for confined spaces to heavy-duty, high-capacity machines for demanding underground operations.

New spraying equipment

The Spraymec 9100 is designed for high-output sprayed concrete applications in large-profile tunnels and caverns. Normet also introduced the Spraymec 4100 designed to deliver high-quality sprayed concrete linings in small to large-sized tunnel profiles.

Major events

Changes in Leadership team

Annami Toukoniitty commenced as SVP, Business Line Services on 2 June 2025, and Mikko Huttunen commenced as SVP, People and Culture on 19 May 2025. They both report to CEO Ed Santamaria and are members of the Normet Group Leadership Team.

Significant events after the review period

New Businesses named Xrock

As part of the focus on strategic growth areas, the New Businesses Business line will focus more clearly on the Xrock mining business and was renamed Xrock as of 1 January 2026.

Changes in Leadership team

Kari Hämäläinen, Senior Vice President, Strategic Business Development, decided to leave the company to pursue career opportunities outside of Normet. Therefore, Vesa Marttila was appointed Vice President, Xrock Business line and member of the Leadership team line as of 1 January 2026. In addition, Nicolas Bec was appointed Senior Vice President, GCCT Business line and member of the Leadership team as of 1 January 2026, replacing Alan Pengelly, who continued in a new role at Normet outside the Leadership team.

Timo Koponen, Chief Financial Officer, decided to leave Normet to join another company by mid-April 2026. The recruitment process for the new CFO has started and the appointment will be announced in due course.

Normet’s Leadership Team as of 1 January 2026:

• Ed Santamaria, President and CEO
• Kalle Sipilä, Senior Vice President, Equipment Business Line
• Annami Toukoniitty, Senior Vice President, Services Business Line
• Nicolas Bec, Senior Vice President, Ground Control & Construction Technologies (GCCT) Business Line
• Vesa Marttila, Vice President, Xrock Business Line
• Timo Koponen, Chief Financial Officer (until mid-April 2026)
• Mikko Huttunen, Senior Vice President, People & Culture
• Kimmo Karihtala, General Counsel
• Juha Tuominen, Chief Information Officer

Normet MRB Oy merged into parent company

On 1 January 2026, the Finnish subsidiaries Normet MRB Oy and Kiinteistö Oy Lahden Yrittäjänkatu 10 were merged into their parent company Normet Oy to clarify the Group’s structure.

Extension of the EUR 200 million financing agreement

In February 2026, Normet exercised an extension option and increased its three-year EUR 200 million financing facility by EUR 20 million.