#Finland #Helsinki #Normet Group #Ed Santamaria #Order Intake

Normet Group's Financial Performance in H1 2025

In their recently published Half-year Financial Report for the period from January 1 to June 30, 2025, Normet Group outlined several critical developments in their operations and market performance. The report, released on August 14, 2025, indicated a substantial increase in order intake, countered by challenges in profitability stemming from delivery timelines and adverse currency effects.

Key Highlights from Q2 2025

Normet Group recorded an impressive 47.1% increase in order intake in the second quarter, totaling approximately EUR 174 million, surpassing the previous record of EUR 118 million. This surge was significantly attributed to several key strategic projects secured across various markets which underline the company's growing influence and market demand for its underground mobile equipment.

However, despite the noteworthy increase in orders, the company's net sales saw a decline of 10% to EUR 108 million, compared to EUR 120 million in the same period last year. This reduction was primarily attributable to lower delivery volumes and negative impacts from currency fluctuations. The operating profit decreased to EUR 8 million, representing a margin of 7.4%, down from 12.3% in Q2 2024.

Performance Overview for the First Half of 2025

For the first half of 2025, Normet Group reported a 24.3% increase in order intake, amounting to EUR 285 million, up from EUR 230 million. Key orders were particularly noted in the Equipment business line, especially from North America and the Asia-Pacific region. However, similar to Q2, net sales dropped by 10.5% to EUR 209 million, which was attributed to timing issues, with deliveries skewed towards the latter half of the year coupled with adverse currency impacts. The comparable operating profit for H1 2025 was reported at EUR 11 million, accounting for a mere 5.1% of net sales.

Safety and Financial Health

On a more encouraging note, the Lost Time Injury Frequency Rate (LTIFR) improved to 1.81, down from 2.4, moving closer to Normet's target of less than 1.5. However, the company’s gearing increased to 99.5%, up from 82.7%, primarily due to the redemption of a hybrid bond which has raised concerns about financial stability moving forward.

Executive Insights

Ed Santamaria, the CEO of Normet Group, commented on the results, highlighting the positive trajectory of market demand for their underground mobile equipment. He expressed satisfaction with the substantial order bookings in Q2, noting that these orders will significantly impact Normet's long-term growth strategy. Santamaria acknowledged the unfavorable sales figures, attributing them to slower mobile equipment deliveries and recent currency fluctuations that impacted multiple business lines.

Additional production capacity has been introduced to better manage the existing order backlog as the company gears up for expected increased demand in the latter part of 2025.

Looking Ahead

Going forward, Normet's focus will be on concluding larger service agreement opportunities, securing new equipment orders, and executing a robust delivery and sales plan for the remainder of the year. The outlook remains optimistic, with anticipated strong demand for Normet's products and services in the medium term as they work to enhance profitability across all business lines despite the challenges faced in Q2.

In summary, while Normet Group celebrates record order intake levels, they will need to address the pressing issues of profitability to ensure sustained growth and performance in the future.