Normet Group: Strong recovery in net sales and profitability

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

Highlights of January - March 2026

• Order intake increased by 28.6% to EUR 143.6 million (111.7).
• The order backlog of the Equipment business line stood at a record high of EUR 175.8 million (117.9) at the end of the period.
• Net sales increased by 28.7% to EUR 128.7 million (100.1). At comparable exchange rates, net sales increased by 34.4%.
• Comparable EBITA amounted to EUR 15.9 million (4.1), representing 12.4% (4.1%) of net sales.
• Operating profit amounted to EUR 13.0 (2.4), representing 10.1% (2.4%) of net sales.
• Comparable operating profit amounted to EUR 14.3 million (2.6), representing 11.1% (2.6%) of net sales.
• Cash flow from operating activities was EUR 17.5 million (8.8).
• Gearing stood at 74.2% (59.8%). The redemption of the hybrid bond in June 2025 contributed to the increase in gearing.

Chief Executive Officer Ed Santamaria comments:

“We had a relatively good start to the year with robust demand recorded across our markets. Our financial result is generally in line with our expectations against a backdrop of geopolitical turbulence and weaker seasonality in the first quarter of 2026.

We have managed the safety and operational impacts from the Middle East situation well at this stage. There is a degree of uncertainty about potential future consequences related to cost increases and availability of fuel and petroleum products, and supply chain interruptions in the Middle East, which we are monitoring very closely.

Orders received increased by 28.6% and were especially strong in our mobile equipment and services businesses. The level of enquiries for Normet underground products, services and technologies remained at a high level.

Net sales increased 28.7% and developed in line with our plan. We have been able to deliver more of our order backlog and our increased focus on sales coverage contributed to the growth.

Our margins, whilst much improved, are still behind our longer-term aspirations and we remain extremely focused and committed to the improvement actions that we implemented late in 2025.”

Outlook

Demand for Normet’s products and expertise, customer process improvements, services, and 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, may impact market growth and economic stability.

Market environment

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

Financial performance

Order intake increased by 28.6 percent to EUR 143.6 million (111.7). The increase was most notable in the Equipment business line. Services also recorded good order growth whilst Xrock was relatively flat and GCCT (Ground Control and Construction Technologies) had a slight decline, partly due to postponed ordering. Geographically, the increase was the biggest in the APAC region.

Good mining sentiment continued in Q1, especially for copper and gold projects. Strong order intake for the review period also in Latin America and North America. Most recent geopolitical challenges have not impacted customers' decision making and proposal activity is at high level. The order backlog of the Equipment business line stood at a record high of EUR 175.8 million (117.9) at the end of the reporting period.

Net sales rose by 28.7 percent to EUR 128.7 million (100.1). At comparable exchange rates, net sales increased by 34.4 percent. The increase was driven by the strong recovery in equipment deliveries from the exceptionally weak level in the comparison period.

Net sales in the Equipment and Services business lines increased by 97% and 9%, respectively. In the Xrock business line, net sales rose by 14%, while sales declined by 8% in the GCCT business line.

Operating profit for the first quarter totalled EUR 13.0 million (2.4). Items affecting comparability amounted to EUR 1.3 million (0.2).

Comparable operating profit amounted to EUR 14.3 million (2.6), or 11.1% (2.6%) of net sales. Profitability increased due to strong delivery volumes and improved cost efficiency. Profitability increased the most in the Equipment and Services business lines. Normet has initiated a transformation project to improve efficiency and profitability, including an annual cost savings target of EUR 20 million by the end of 2026.

Currency translation and transaction gains had a positive impact across all the business lines. Research and development costs increased slightly due to additional investments in electrification and automation technology.

Cash flow, balance sheet and financing

Cash flow from operating activities was EUR 17.5 million (8.8). The cash flow was positively impacted by the improved financial result, net working capital management, and lower tax payments.

Cash flow from investment activities amounted to EUR -3.1 million (-1.6), and cash flow from financing activities was EUR -6.7 million (-2.5). Cash and cash equivalents amounted to EUR 46.1 million (46.2) at the end of the reporting period.

Normet’s total assets amounted to EUR 539.5 million (497.8) and equity EUR 180.3 million (199.0) at the end of the reporting period.

Interest-bearing net liabilities amounted to EUR 133.8 million (118.9) at the end of the reporting period, while gearing was 74.2% (59.8%) and the equity ratio was 35.6% (41.3%). Gearing increased primarily due to the redemption of a 30-million hybrid bond in June 2025.

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.

On 31 March 2026, the Group had approximately EUR 60 million (60) of undrawn credit facilities at its disposal.

New products

Normet expands its scaling offering with the new, compact Scamec LC 065 A

In January 2026, Normet launched the Scamec LC 065 A, a purpose-built scaling machine designed to deliver exceptional safety, visibility, and productivity for underground operations. The new 065 A is based on the same proven, robust carrier as two other Scamec models.

Scaling is one of the most dangerous and challenging underground mining processes. To mitigate the risks, the Scamec LC 065 A incorporates multiple protective safety features.

Major events

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

Vesa Marttila was appointed Vice President, Xrock business line and a member of the Leadership team as of 1 January 2026, following a decision by Kari Hämäläinen, Senior Vice President, Strategic Business Development, to leave the company to pursue career opportunities outside of Normet.

Nicolas Bec was appointed Senior Vice President, GCCT business line and a 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.

Juha Torniainen was appointed as interim Chief Financial Officer, effective 13 April 2026. He replaced Timo Koponen, who left the company in April 2026 to join another company, as announced earlier. The recruitment process for a permanent CFO is currently underway.

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.

Significant events after the review period

No significant events occurred after the review period.

Attachments

See the full Q1 release including consolidated financial tables: Normet Q1 2026 Report
See the Q1 presentation: Normet Q1 2026 Presentation