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Investing.com -- Norma Group reported third-quarter 2025 sales that fell 6% below consensus estimates, while posting an adjusted EBIT of €3.8 million compared to break-even consensus expectations. The company’s stock declined 5.5% following the announcement.
The company’s Industry Applications segment achieved organic growth in the Americas, which offset declining performance in the EMEA (Europe, Middle East, and Africa) region. This growth was primarily driven by higher volumes, with modest price increases also contributing to the positive results.
Meanwhile, the Mobility & New Energy segment experienced an organic decline, primarily due to weak demand from the automotive sector in both the Americas and EMEA regions. The APAC (Asia-Pacific) region posted a slight increase. The overall decrease in this segment was attributed almost equally to lower volumes and reduced pricing.
Regional margin analysis for the third quarter revealed that Norma’s operational challenges are concentrated in the EMEA region, which reported a negative margin of 1%. In contrast, the Americas and APAC regions demonstrated profitability with margins of 4.5% and 10.3%, respectively.
The company’s leverage ratio stood at 2.4x at the end of September 2025.
On October 27, Norma had previously released an ad hoc announcement regarding a non-cash effective goodwill impairment charge of €50 million for the EMEA region. This impairment was primarily attributed to revised revenue assumptions for the EMEA region in upcoming financial years. While the impairment has an impact on the profit and loss statement, it does not affect cash flow.
Despite these challenges, Norma maintained its 2025 guidance for continuing operations, projecting sales of €810-830 million, down from €1.1-1.2 billion when including the Water Management segment. The company expects an adjusted EBIT margin of 0-1%, compared to the previous 6-8% forecast. Analysts anticipate a gradual improvement in the adjusted EBIT margin, reaching 5% by 2028.
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