Normet Group: Continued 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 April - June 2026

• Strong sales growth and significant margin improvement continued during the quarter.
• Net sales increased by 20.4% to EUR 130.6 million (108.5), while comparable EBITA amounted to EUR 19.5 million (9.6), corresponding to a margin of 15.0% (8.8%).
• Operating profit increased to EUR 16.6 million (8.1) and comparable operating profit to EUR 17.8 million (8.1), with margins improving to 12.7% (7.4%) and 13.6% (7.4%), respectively.
• Order intake amounted to EUR 147.7 million (173.7), remaining at a healthy level despite a strong comparison period and the Equipment business line's order backlog reached a record high of EUR 189.6 million (148.6) at the end of the period.

Highlights of January - June 2026

• The first half of the year delivered strong sales growth, improved profitability, and a record-high equipment order backlog.
• Net sales increased by 24.3% to EUR 259.3 million (208.6). At comparable exchange rates, net sales increased by 26.9%.
• Order intake increased by 2.1% to EUR 291.3 million (285.4).
• Comparable EBITA reached EUR 35.5 million (13.7), corresponding to a margin of 13.7% (6.6%).
• Operating profit increased to EUR 29.6 million (10.4) and comparable operating profit to EUR 32.0 million (10.7), with margins improving to 11.4% (5.0%) and 12.3% (5.1%), respectively.
• Cash flow from operating activities improved to EUR 24.7 million (14.9), while gearing decreased to 71.6% (87.4% at December 31, 2025).

Chief Executive Officer Ed Santamaria comments:

The level of market activity and tender proposals have continued at a high level and we are pleased that Normet is increasingly engaged with our mining customers on technologies, products and solutions for their underground mining projects. In Q2, our financial result improved from the comparison period as well as from the previous quarter. Our Q2 book to bill ratio was 1.13 and the all-time high order backlog at the end of June provides a solid base for the coming quarters. We have further improved our safety KPIs concluding the quarter with a record low LTIFR (Lost Time Injury Frequency Rate) of 1.3 (1.8 in Q2 2025).

January–June orders received increased by 2.1% taking into account exceptionally and seasonally high Equipment orders received during the second quarter of 2025, while Services order intake has continued to grow sequentially. The demand for Normet underground products, services and technologies has remained at a high level. January–June net sales increased by 24.3%.

Our profitability continued to improve, demonstrating that Normet’s longer-term aspirations are achievable by disciplined execution of our strategy. Our operational performance improved in the quarter across production, service centres and supply chain and the work to further improve cost efficiency continues. The improvement actions to deliver a 20 MEUR saving previously announced are on-going.

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, 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

April–June 2026

Order intake decreased by 15.0% to EUR 147.7 million (173.7). Order intake decreased primarily due to an exceptionally strong comparison period, which included large equipment orders in North America and India. In Africa, equipment order intake increased during the quarter. The Services business line order intake continued to increase from the comparison period. The Xrock and GCCT (Ground Control and Construction Technologies) business lines had a slight decline, partly due to some postponed ordering.

Geographically, the seasonal decrease was largest in North America and India, and the biggest increase took place in the Africa region. Good mining sentiment continued in Q2, despite quarterly order intake seasonally decreasing from the previous year. Most recent geopolitical challenges have not materially impacted customers' decision-making, and proposal activity has continued at a high level.

Net sales increased by 20.4% to EUR 130.6 million (108.5). At comparable exchange rates, net sales rose by 20.3%. The increase was driven by the 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 57.6% and 21.2%, respectively. In the Xrock and GCCT business lines, net sales decreased by 34.7% and by 8.3%, respectively.

Operating profit totalled EUR 16.6 million (8.1). Items affecting comparability amounted to EUR -1.2 million (0.0).

Comparable operating profit amounted to EUR 17.8 million (8.1), or 13.6% (7.4%) 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. Part of the savings has already been realized, and the remaining benefits are expected to be achieved during the remainder of 2026.

Research and development costs increased slightly due to additional investments to accelerate progress in the development of Normet electrification and automation technology.

January–June 2026

Order intake increased by 2.1% to EUR 291.3 million (285.4).

Order intake increased in the Services business line and decreased in the other business lines. Geographically, order intake declined mainly in India-Middle East and somewhat in North America (due to a stronger result in the comparative period), while it increased in Europe, Africa and APAC.

Positive sentiment in the mining sector continued, especially for copper and gold projects. Most recent geopolitical challenges have not materially impacted customers' decision making and proposal activity has continued at a high level.

The order backlog of the Equipment business line stood at a record high of EUR 189.6 million (148.6) at the end of the reporting period.

Net sales increased by 24.3% to EUR 259.3 million (208.6). At comparable exchange rates, net sales rose by 26.9%. The increase was driven by the 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 76.4% and 15.3%, respectively. In the Xrock and GCCT business lines, net sales declined by 14.1% and by 7.9%, respectively. Xrock decline 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. We expect to see improved sales development in both Xrock and GCCT in H2 of 2026.

Cash flow, balance sheet and financing

In January–June 2026, cash flow from operating activities was EUR 24.7 million (14.9). The improvement in cash flow was primarily related to the improved financial result as well as lower tax payments, 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 H2 deliveries.

Cash flow from investment activities amounted to EUR -7.7 million (-5.2), and cash flow from financing activities was EUR -7.2 million (-18.5). Cash and cash equivalents amounted to EUR 48.2 million (30.9) at the end of the reporting period.

Normet’s total assets amounted to EUR 579.8 million (Dec 31, 2025: 524.6) and equity EUR 186.2 million (Dec 31, 2025:170.2) at the end of the reporting period.

Interest-bearing net liabilities amounted to EUR 133.0 million (Dec 31, 2025: 145.2) at the end of the reporting period, while gearing was 71.6% (Dec 31, 2025: 87.4%) and the equity ratio was 34.6% (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.

At the end of June 2026, the Group had approximately EUR 55 million (Dec 31, 2025: 35) of undrawn credit facilities at its disposal.

New products

Normet’s new Spraymec 2100 brings modern safety and reliability to essential concrete spraying
In June 2026, Normet launched the Spraymec 2100, a new concrete sprayer designed to meet today’s safety, emission, and usability requirements in small and mid‑size mine envelopes. The Spraymec 2100 strengthens Normet’s sprayed concrete equipment portfolio by providing a modern, globally applicable essential solution for underground projects where simplicity, reliability, and cost efficiency are key.

Major events

The roll-out of ERP (Enterprise Resource Planning) system and standardized global business processes under Normet Smart 365 transformation program continued with preparations ongoing for the next round of our global ERP go-live scheduled in Australia, Asia, Africa, North America and Latin America in the coming quarters.

Services Business Line's supply chain vision, new operating model with process definitions and KPIs, as well as capability gaps analysis have been completed and first two availability improvement pilots have been completed in the Normet SmartMove project in the second quarter of the year. The project aims to re-design the spare parts supply chain and establish a robust framework for performance management and KPI tracking.

In April, Normet launched a Security Operations Center (SOC) to strengthen the ability to detect and respond to cyber threats faster and more effectively. The SOC monitors the Normet IT environment globally around the clock, every day of the year. This is an important step in the long-term development of cybersecurity, and it also supports the growing, digital, and international operations at Normet.

Significant events after the review period

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.

Changes in Leadership team
Effective 1 September 2026, Thomas Ekström has been appointed Chief Financial Officer. He succeeds Juha Torniainen, who has served as Interim Chief Financial Officer throughout the transition period following Timo Koponen’s departure in April 2026.

No other significant events occurred after the review period.

Attachments

See the full Q2 release including consolidated financial tables: Normet Q2 2026 Report
See the Q2 presentation: Normet Q2 2026 Presentation