Normet Group interim report 1 January–30 September 2025

Normet Group: Higher net sales, profitability weighed down by lower deliveries and currency effect

This is a summary of Normet’s interim report January–September 2025. The full report including the consolidated financial tables is attached as a PDF file in this release and is also available at www.normet.com.

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

Highlights of July - September 2025

• Order intake amounted to EUR 121 million (121)
• Net sales increased by 3.4% to EUR 117 million (113). At comparable exchange rates, net sales increased by 9.9%
• Comparable operating profit amounted to EUR 7 million (9), representing 6.1% (7.7) of net sales.

Highlights of January - September 2025

• Order intake increased by 15.6% to EUR 406 million (351).
• The order backlog of the Equipment business line stood at EUR 143 million (102) at the end of the period.
• Net sales decreased by 5.9% to EUR 326 million (346). At comparable exchange rates, net sales decreased by 2.3%
• Comparable operating profit amounted to EUR 18 million (36), representing 5.5% (10.3) of net sales.
• Cash flow from operating activities was EUR 22.8 million (30.7).
• Gearing stood at 97.6% (80.0). The redemption of the hybrid bond increased the gearing.

Chief Executive Officer Ed Santamaria comments:

“We delivered a mixed performance in the third quarter, which is far from acceptable. Our sales development continued to be short of expectations and our level of profitability is very disappointing. As a consequence, we are planning a number of improvement measures and a refocus of priorities that will be implemented across our business. These measures include actions to address our cost base.

We are, however, pleased with our performance in securing additional new orders for our underground mobile equipment in the third quarter. We saw higher customer interest and orders for our Normet XRock breaker systems, which are steadily gaining more traction across our markets. The opportunity pipeline for our equipment remains very healthy with several exciting orders expected to be finalized in the coming two quarters.

While net sales increased from the comparison period, some of our deliveries were deferred due to production and logistics related delays. We have taken corrective action and expect this to improve considerably in the fourth quarter as additional capacity comes online in our main factories and local delivery centers. Indications from our service and consumable businesses show early signs of improvement from investments made into additional sales resources and from supply chain improvements that are underway. Significant service orders related to a number of new customer projects are in the final stages of completion and are expected to be recorded in the fourth quarter of 2025.

The market activity and interest for our products and services remains at a good level. I am convinced that by implementing the improvement initiatives and working together with our personnel and partners we can also achieve the much needed turnaround in profitability.

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.

Financial performance

July-September 2025

Order intake was in line with the comparison period at EUR 121 million (121). Asia Pacific, Europe, Eurasia, and Africa were the strongest Sales areas.

Net sales rose by 3.4 percent to EUR 117 million (113). At comparable exchange rates, net sales increased by 9.9 percent. Adverse currency effects continued to impact all the business lines. Deliveries in the Equipment business line increased quarter-on-quarter, even as many were deferred to the fourth quarter.

Comparable operating profit fell by 17.7 percent to EUR 7 million (9), or 6.1% (7.7) of net sales. Low delivery volumes in the Equipment business line continued to impact the overall profitability. Also, in the Ground Control and Construction Technologies (GCCT) business line, low delivery volumes burdened the profitability during the period. In addition, currency translation losses continued to have a significant impact across all the business lines.

January-September 2025

Order intake increased by 15.6 percent to EUR 406 million (351). The Equipment business line recorded many significant orders. Order intake increased most in North America and Asia Pacific, while declining in Europe, Eurasia and African Sales areas.

The order backlog of the Equipment business line stood at EUR 143 million (102).

Net sales fell by 5.9 percent to EUR 326 million (346). At comparable exchange rates, net sales decreased by 2.3 percent. Adverse currency effects impacted on all business lines. Recovery of the net sales from the slow first half of the year in the Equipment business line accelerated, while the full-year performance remains strongly dependent on the last quarter. Net sales in the Services business line and the GCCT business line declined by 5 percent and 10 percent year-on-year, respectively. Lower activity level in mid-life and on-site services impacted net sales at the Services business line, whereas weakness in the Indian and Northern European markets burdened the GCCT business line.

Comparable operating profit fell by 49.8 percent to EUR 18 million (36), or 5.5% (10.3) of net sales. Profitability in the Equipment business line continued to be affected by low delivery volumes. 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 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 and financing

Cash flow from operating activities in January–September 2025 was EUR 22.8 million (30.7). The cash flow was negatively impacted by the weaker operative performance, whereas the company’s net working capital remained at the same level as in the comparison period.

Cash flow from investment activities amounted to EUR -13.0 million (-17.7), and cash flow from financing activities was EUR -14.8 million (-7.3). Cash and cash equivalents amounted to EUR 34.5 million (42.0) at the end of the reporting period.

Interest-bearing net liabilities amounted to EUR 158 million (141) at the end of the reporting period, while gearing was 97.6% (80.0) and the equity ratio was 33.4% (35.3). Gearing increased primarily due to the redemption of the hybrid bond in June 2025.

New products

Normet expands battery-electric SmartDrive® offering

In May 2025, Normet expanded its battery-electric SmartDrive® with two new platforms to cover a comprehensive range from XS- to L-series. The new platforms are designed to cover 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.

Normet launches new spraying equipment

In May 2025, Normet announced the launch of a new concrete sprayer for large tunnel profiles, the Spraymec 9100. Additionally, a new spray boom update for the established Minimec spraying manipulator was released, allowing for an extended spraying reach.

The Spraymec 9100 is a purpose-built tunnelling sprayer designed for high-output sprayed concrete applications in large-profile tunnels and caverns. It combines the most advanced features from our entire sprayer lineup—including a best-in-class low-pulsation concrete pump, onboard compressor, and a 1,500-liter accelerator tank—into one powerful machine.

In April 2025, Normet announced the launch of the Spraymec 4100 and Spraymec 5100 - two concrete sprayers designed to enhance productivity, quality, and reliability in underground construction projects. These new models are purpose-built with selected field-proven Normet solutions to deliver high-quality sprayed concrete linings in small to large-sized tunnel profiles.

Major events

Redemption of the EUR 30 million hybrid bond

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 to but excluding the redemption date.

Appointments in the 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.

Attachments

See the full Q3 release including consolidated financial tables: Normet Q3 2025 Report
See the Q3 presentation: Normet Q3 2025 Presentation