Normet Group: Record high quarterly order intake, profitability weighed down by lower deliveries and currency effect

Normet Group has published its Half-year Financial Report for 1 January–30 June 2025 on 14 August 2025. Below is a summary of the report. The full document is available at https://www.normet.com/en/discover-normet/about-us/financial-reports/.

Highlights of April−June 2025

• Order intake increased by 47.1% and reached a quarterly record of EUR 174 million (118), including a number of key strategic projects across several markets.
• Net sales decreased by 10.0% to EUR 108 million (120) as a result of lower deliveries and an adverse currency effect.
• Comparable operating profit amounted to EUR 8 million (15), representing 7.4% (12.3%) of net sales. The decline was mainly driven by lower deliveries and an adverse currency effect.

Highlights of January−June 2025

• Order intake increased by 24.3% to EUR 285 million (230) with significant orders in the Equipment business line, particularly in North America and Asia-Pacific regions.
• Net sales decreased by 10.5% to EUR 209 million (233) as a result of the timing of deliveries being weighed more towards the end of the year and an adverse currency effect.
• Comparable operating profit amounted to EUR 11 million (27), representing 5.1% (11.4%) of net sales. The decline was mainly driven by lower deliveries, an adverse sales mix, and an adverse currency effect.
• Lost Time Injury Frequency Rate (LTIFR) at the end of the reporting period was 1.8¹ (2.4), nearing Normet’s long-term target of less than 1.5
• Gearing stood at 99.5% (82.7%). The redemption of the hybrid bond increased the gearing.

Chief Executive Officer Ed Santamaria comments:

“The positive improvement in market demand for our underground mobile equipment continued throughout Q2, and in fact, we secured record new orders of 174 MEUR. The major orders in Q2 came from across several of our markets and included a number of key strategic projects that are critical for Normet's longer-term future.

Several of the new major equipment orders include Normet service agreements, which are under finalization and expected to be booked in Q3. The order pipeline remains healthy with major new orders expected to materialize in Q3 and Q4.

Net sales development was a disappointing 10% below the corresponding Q2 2024 period. Slower delivery of mobile equipment and negative FX across all Business lines remain the main contributors to the lower sales. Equipment output and final customer deliveries have increased progressively since the start of the year, and additional production capacity has been added to the lines to manage the increased order backlog and secure the H2 unit deliveries.

The low profitability result in Q2 is disappointing for Normet and is an area that the management is committed to improve with urgency. To a large extent, lower volumes and negative FX across the Business Lines contributed to lower margins as did additional up-front investments in technology development, predominantly in electrification and automation, which are essential to a number of our new orders. Actions to improve the profitability across the business have been prioritized.

Our focus for H2 is on finalizing the larger service agreement opportunities, securing new equipment orders, and executing on our delivery and sales plans for the remaining part of 2025.”

Outlook

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

For more information, please contact:
Timo Koponen, Chief Financial Officer
Normet Group Ltd.
Phone: +358 40 749 2986
E-Mail: timo.koponen[a]normet.com

Normet Group
Normet is a world-leading, innovative technology company. We define the future of underground operations in mining, tunnelling, and civil engineering projects, helping our partners increase safety, sustainability, and productivity throughout the lifecycle of their projects. Since 1962 we have developed our offerings to include a complete portfolio of mining and tunnelling solutions covering the core processes. Headquartered in Finland, we employ over 1,800 dedicated professionals in more than 50 locations in 30 countries around the world, committing to long-term, mutually beneficial partnerships that create value in our industry and society as a whole. Normet Group net sales totalled EUR 482 million in 2024. Get to know us better at www.normet.com.

¹ Last 12 months