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Normet Group: An Overview of Recent Financial Performance

On August 14, 2025, Normet Group released its Half-year Financial Report, which covers the first six months of the year, from January 1 to June 30, 2025. As outlined in the report, the company experienced remarkable growth in order intake, while its profitability was influenced negatively by various factors, including delivery delays and foreign exchange currency fluctuations.

Highlights from the Quarterly Report

During the second quarter of 2025, Normet achieved a significant milestone with a 47.1% increase in order intake, reaching a record high of EUR 174 million, compared to EUR 118 million in the same period last year. This growth was attributed to several key strategic projects across diverse markets.

However, net sales for the quarter saw a decline of 10% to EUR 108 million, down from EUR 120 million, as a result of reduced delivery volumes and adverse currency effects affecting sales figures. The comparable operating profit decreased to EUR 8 million from EUR 15 million, which is 7.4% of the net sales, compared to 12.3% in the previous year.

Half-Year Performance Summary

From January to June 2025, Normet Group's overall order intake rose by 24.3%, totaling EUR 285 million. This surge was largely driven by substantial orders in their Equipment business line, particularly from customers in North America and Asia-Pacific regions. However, net sales dipped 10.5% to EUR 209 million from EUR 233 million, further affected by delivery timing and currency fluctuations.

In terms of operating profit, the figure dropped to EUR 11 million, down from EUR 27 million, marking just 5.1% of net sales against 11.4% in the same timeframe last year. A crucial factor behind this decline included lower delivery numbers and a less favorable sales mix due to timing discrepancies and currency impacts.

Improvement in Safety and Gearing Ratio

On a positive note, the Lost Time Injury Frequency Rate (LTIFR) improved to 1.81, down from 2.4, which indicates Normet is nearing its long-term target of less than 1.5. However, the company's gearing ratio climbed to 99.5% from 82.7%, following the redemption of a hybrid bond, reflecting elevated debt levels.

Insights from the CEO

Ed Santamaria, the Chief Executive Officer of Normet Group, expressed optimism about the record order intake despite the decline in lower sales performance. He highlighted that ongoing market demand for underground mobile equipment remained strong throughout the second quarter. Major strategic projects from multiple markets contributed to the impressive order levels.

While he acknowledged that net sales were disappointing, he pointed out improvements in equipment output and customer deliveries throughout the year. Santamaria emphasized the urgency for management to enhance profitability due to lower margins driven by delivery delays and unfavorable FX conditions.

He also noted that the company has been investing in technology advancements, focusing on electrification and automation—a key component in several new orders. Management has set a high priority on improving profitability and finalizing larger service agreements and new equipment orders moving into the latter half of 2025.

Future Outlook

Looking ahead, Normet Group anticipates that the demand for its products, expertise, and services will remain robust in the medium term. As strategic projects are set to unfold in the coming quarters, the company has positioned itself to capitalize on the growing market opportunities. The management is aiming to secure new orders and efficiently execute its delivery plans.

In summary, while facing challenges in profitability and currency impacts, Normet Group's record order intake reflects its strong market presence and potential for future growth. Investors and stakeholders will be keenly watching how the company navigates these challenges and seizes opportunities in the upcoming months.