Normet Group: Continued strong recovery

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

Highlights of July−September 2026

• Significant increase in order intake, sales growth and margin improvement continued
• Order intake increased by 37.2% to EUR 165.4 million (120.5) and the Equipment business line's order backlog reached a record high of EUR 205.6 million (143.3) at the end of the period.
• Net sales increased by 21.9% to EUR 142.7 million (117.1). At comparable exchange rates, net sales increased by 20.0%.
• Comparable EBITA amounted to EUR 25.6 million (8.8), corresponding to a margin of 18.0% (7.5%).
• Operating profit increased to EUR 22.9 million (7.2) and comparable operating profit to EUR 23.8 million (7.2), with margins improving to 16.1% (6.1%) and 16.7% (6.1%), respectively.
• Cash flow from operating activities increased to EUR 18.0 million (7.9)

Highlights of January−September 2026

• Strong increase in sales growth and margins with improved operating cash flow
• Order intake increased by 12.5% to EUR 456.7 million (405.9).
• Net sales increased by 23.4% to EUR 402.0 million (325.7). At comparable exchange rates, net sales increased by 24.4%.
• Comparable EBITA reached EUR 61.1 million (22.4), corresponding to a margin of 15.2% (6.9%).
• Operating profit increased to EUR 52.5 million (17.7) and comparable operating profit to EUR 55.9 million (17.9), with margins improving to 13.1% (5.4%) and 13.9% (5.5%), respectively.
• Gearing decreased to 59.5% (87.4% at December 31, 2025).
• Cash flow from operating activities increased to EUR 42.7 million (22.8)

Chief Executive Officer Ed Santamaria comments:

The third quarter marked another strong step forward for Normet. Customer activity remained high across most mining markets and demand for our equipment, services, and underground technologies continued to develop positively. The quarter was characterized by strong order intake, continued sales growth, improved profitability and a record Equipment order backlog, providing a solid foundation for future growth. We are particularly pleased with the progress in our Equipment and Services businesses. Our record Equipment order backlog reflects both healthy market conditions and customer confidence in Normet's solutions and capabilities. The year-to-date book-to-bill ratio was 1.4 (1.2).

The continued growth of Services demonstrates the commitment and efforts of our teams in working closely with our customers, supporting their Normet fleet with enhanced solutions and a broader portfolio covering the full life-cycle of the units. We see an increase in demand for Normet’s technical expertise, specialized training and an increase in the number of Normet fleet units covered by service agreements.

Both Xrock and GCCT Business Lines have made considerable progress in expanding their customer contact and reach across the mining markets and we see encouraging signs emerging that will translate into new orders and sales in the coming quarters.

Improved operational performance across our supply chain combined with a higher proportion of Services revenue and continued progress in our transformation initiatives are strengthening the profitability of the business. Safety remains a high priority and I am pleased that we concluded the quarter with an improved LTIFR of 1.1 (2.2 in Q3 2025). Beyond our safety performance, we have raised our ambition to enhance safety across our customers’ operating environments.

In September, we opened our new Technology Center in Pirkkala, Finland, strengthening our capabilities in autonomy, robotics, software and digital technologies. These capabilities are increasingly important as our customers seek safer, more productive and more sustainable ways to operate in complex underground operations.

Looking ahead, the fundamentals of our markets remain attractive. We enter the final quarter with a strong order backlog and remain focused on serving our customers, delivering on our commitments and executing our growth strategy.

Outlook

Demand for Normet’s products and expertise, customer process improvements, services as well as for consumables is expected to remain at the current level over the remainder of the financial year. Geopolitical uncertainty, especially the situation in the Middle East, still has potential to impact market growth and economic stability and we continue to monitor this very closely.

Market environment

The fundamentals of attractive commodity prices, urbanisation, critical minerals supply, electrification and defence spending remain robust. As mines plan to operate in deeper and more unpredictable environments, the opportunities available to Normet increase.

Financial performance

July–September 2026

Order intake increased by 37.2% to EUR 165.4 million (120.5), driven by a very strong increase in order intake in Equipment as well as strong order intake in Services.

Third-quarter order intake in Equipment included notable orders for deliveries to Africa and North America, as well as several orders in Australia. Services recorded a high volume of orders, with no significant individual orders during the quarter.

The order backlog of the Equipment business line stood at a record high of EUR 205.6 million (143.3) at the end of the reporting period.

Net sales increased by 21.9% to EUR 142.7 million (117.1). At comparable exchange rates, net sales rose by 20.0%. The increase was driven by a strong recovery in equipment deliveries from the exceptionally weak level in the comparison period and an increase in demand for Normet Services.

Net sales in the Equipment and Services business lines increased by 27.5% and 37.1%, respectively. In the Xrock and GCCT business lines, net sales decreased by 13.1% and by 11.0%, respectively. The GCCT business is transitioning its focus more to underground mining and consequently realigning its activities away from other sectors, while Xrock has seen delays in a number of significant automated system orders which we expect to realize in the coming quarters.

Operating profit totalled EUR 22.9 million (7.2). Items affecting comparability amounted to EUR -0.9 million (0.0).

Comparable operating profit amounted to EUR 23.8 million (7.2), or 16.7% (6.1%) of net sales. Profitability increased due to strong delivery volumes and improved operational efficiency, especially in the Equipment and Services business lines. Normet initiated a transformation project at the end of 2025 aimed at achieving annual cost savings of EUR 20 million. A significant part of the savings has already been realized, and the remaining benefits are expected to be achieved during the remainder of 2026.

January–September 2026

Order intake increased by 12.5% to EUR 456.7 million (405.9), driven by strong increase in order intake in Equipment as well as strong order intake in Service.

Cumulative order intake in Equipment included one significant individual order for delivery to Africa, the largest received during the period. Other notable order intake comprised further orders for deliveries to Africa and North America, together with several orders in Australia. Services recorded a high volume of orders, with no significant individual orders.

Net sales increased by 23.4% to EUR 402.0 million (325.7). At comparable exchange rates, net sales rose by 24.4%. The increase was driven by a strong recovery in equipment deliveries as well as increasing demand for Normet services portfolio.

Net sales in the Equipment and Services business lines increased by 56.2% and 22.5%, respectively. In the Xrock and GCCT business lines, net sales declined by 13.7% and by 9.0%, respectively. The decline in the Xrock business is related to some longer decision cycle times on specific new projects and GCCT is applying more focus on specialized ground support and stability solutions for deep underground mining projects.

Operating profit totalled EUR 52.5 million (17.7). Items affecting comparability amounted to EUR -3.3 million (-0.2).

Comparable operating profit amounted to EUR 55.9 million (17.9), or 13.9% (5.5%) of net sales. Profitability increased due to strong delivery volumes and improved operational efficiency, especially in the Equipment and Services business lines. Normet initiated a transformation project at the end of 2025 aimed at achieving annual cost savings of EUR 20 million. A significant part of the savings has already been realized, and the remaining benefits are expected to be achieved during the remainder of 2026.

Cash flow, balance sheet and financing

In January–September 2026, cash flow from operating activities was EUR 42.7 million (22.8). The improvement in cash flow was primarily related to the improved financial result, while net working capital increased during the period. The increase in NWC is mostly due to the higher equipment back-log and production plans preparing for deliveries.

Cash flow from investing activities amounted to EUR -11.7 million (-13.0), and cash flow from financing activities was EUR -3.3 million (-14.8). Cash and cash equivalents amounted to EUR 66.0 million (Dec 31, 2025: 37.8) at the end of the reporting period.

Normet’s total assets amounted to EUR 623.1 million (Dec 31, 2025: 524.6) and equity EUR 201.4 million (Dec 31, 2025: 170.2) at the end of the reporting period.

Interest-bearing net liabilities amounted to EUR 119.4 million (Dec 31, 2025: 148.9) at the end of the reporting period, while gearing was 59.5% (Dec 31, 2025: 87.4%) and the equity ratio was 35.3% (Dec 31, 2025: 34.2%).

Liquidity

The company’s liquidity remains good. In February 2026, Normet exercised an extension option and increased its three-year EUR 200 million financing facility, initially signed in January 2025, by EUR 20 million. The agreement includes a EUR 80 million revolving credit facility.

At the end of September 2026, the Group had approximately EUR 50 million (Dec 31, 2025: 35) of undrawn credit facilities at its disposal.

New products

New HX-Bolt Launch Expands Normet's Rock Reinforcement Portfolio

Normet announced in August the launch of HX-Bolt, a hybrid anchorage system designed to deliver immediate dynamic support after installation while enabling permanent reinforcement through resin or grout encapsulation. Developed for underground mining applications, HX-Bolt combines the benefits of mechanical and bonded anchorage in a single support solution, further strengthening Normet's rock reinforcement portfolio.

Normet upgrades its entire ECM emulsion charging system range and introduces new 4- and 6-tonne versions

Underground emulsion charging operations have varying requirements for capacity, configuration and application across different mines and tunnel projects. To meet these operational needs, Normet announced in September that it had upgraded its full range of emulsion charging systems and introduced new 4- and 6-tonne Normet ECM versions.

The existing 1.5-, 2.2- and 3-tonne modules have also been upgraded with the latest system improvements, providing customers with advanced technology and greater flexibility across the entire range.

Major events during the quarter

Changes in Leadership team

Effective 1 September 2026, Thomas Ekström was appointed Chief Financial Officer. He succeeded Juha Torniainen, who served as Interim Chief Financial Officer throughout the transition period following the departure of Timo Koponen in April 2026.

Normet celebrates the opening of its new Technology Center in Pirkkala, Finland

In September 2026, Normet opened its new Technology Center in Pirkkala, Finland. The facility strengthens Normet’s capabilities in research, development and testing of advanced technologies that improve the safety, productivity and sustainability of underground operations.

The new center will serve as a hub for autonomy, robotics, software development and other digital technologies that are shaping the future of mining. As mines become deeper and operating conditions more demanding, technologies that enable remote and autonomous operations play an increasingly important role in moving people away from hazardous environments.

Significant events after the review period

In October, Normet and Codelco, one of the world's largest copper producers, announced a five-year technology development program to advance autonomous and remotely operated underground mining technologies. The collaboration will focus on developing safer, more productive mining processes through technology pilots at Codelco's El Teniente mine in Chile. Development activities related to the pilots will be carried out at Normet's recently opened Technology Center in Pirkkala.

In October, Normet Group received Finland’s 2026 National Entrepreneur of the Year Award, recognizing the company’s strong growth and transformation. Under Chairman of the Board Aaro Cantell’s ownership, Normet’s revenue has grown more than tenfold. The National Entrepreneur of the Year Award (Valtakunnallinen yrittäjäpalkinto) is a prestigious Finnish business recognition celebrating successful entrepreneurship and companies that contribute to economic growth and renewal.

Attachments

See the full Q3 release including consolidated financial tables: Normet Q3 2026 Report
See the Q3 presentation: Normet Q3 2026 Presentation