NORMA Group has provided details on its NewNORMA strategy and set financial ambitions through 2031 at its Strategy Update in Frankfurt. The company aims to achieve average annual currency-adjusted sales growth of 1 to 3%, an adjusted EBIT margin exceeding 10%, and cash conversion of over 70% by 2031. These targets are underpinned by three key initiatives: Sales Push, Footprint optimization, and Transformation, which are designed to accelerate profitable growth, improve capacity utilization, and reduce structural costs.
CEO Birgit Seeger stated that the strategy lays the groundwork for a successful future by leveraging the company's strong industrial foundation. The realignment into two strategic business units—Mobility & New Energy and Industry Applications—forms the basis of the strategy. Mobility & New Energy focuses on strengthening competitiveness, improving asset utilization, and ensuring resilient cash generation, while Industry Applications drives profitable growth by expanding into attractive markets such as data centers, battery energy storage systems, heat pumps, and household appliances.
The Sales Push initiative aims to intensify commercial execution and win profitable business to improve capacity utilization. Initial successes are visible: in the first nine months of 2026, cumulative lifetime sales won in the Mobility & New Energy business unit increased by approximately 45% compared with the prior-year period. Footprint measures include consolidating manufacturing sites in China, concentrating production in Mexico, closing a distribution center in Australia, and planning the closure of the regional office in Singapore, while strengthening the Shared Service Center in Novi Sad, Serbia. In EMEA, where the network of nine production sites is structurally underutilized, NORMA Group intends to consolidate production and make more targeted use of best-cost locations. These measures are expected to generate an additional annualized EBIT contribution of approximately EUR 20 to 30 million by 2031.
The Transformation program focuses on simplifying the organization, reducing complexity, standardizing and automating core processes, and strengthening performance management. Together with the footprint optimization, NORMA Group expects total additional annualized EBIT savings of approximately EUR 70 to 90 million by 2031 compared to fiscal year 2026. CFO Okan Celiker noted that the financial ambition is backed by clear operational measures already being implemented, combining profitable volume growth, improved mix, higher capacity utilization, lower structural costs, and strict working capital and investment discipline.
NORMA Group also announced a new dividend policy starting in fiscal year 2027, targeting a payout ratio of at least 10% of adjusted Group Net Income, subject to approval by the Annual General Meeting. The company maintains a focus on disciplined capital allocation, prioritizing a strong balance sheet with a medium-term net debt to adjusted EBITDA ratio of up to 1.5x, and prioritizing organic growth investments. Potential share buybacks may be considered alongside the dividend. The full strategy presentation is available on the company's website, and the original release can be viewed on www.newmediawire.com.
