NORMA Group has provided detailed insights into its NewNORMA strategy and financial ambitions through 2031 at its Strategy Update in Frankfurt. The announcement marks a critical shift from portfolio restructuring to operational execution, with the company targeting average annual currency-adjusted sales growth of 1 to 3%, an adjusted EBIT margin above 10%, and cash conversion exceeding 70% by 2031. These targets are underpinned by three key initiatives—Sales Push, Footprint optimization, and Transformation—aimed at accelerating profitable growth, improving capacity utilization, and reducing structural costs.
Central to the strategy is the realignment of two strategic business units: Mobility & New Energy and Industry Applications. Mobility & New Energy will serve as the resilient core, focusing on competitiveness and cash generation, while Industry Applications will drive profitable growth by expanding into structurally attractive markets such as data centers, battery energy storage systems, heat pumps, and household appliances. CEO Birgit Seeger emphasized that the company is leveraging its engineering expertise in fastening, connecting, and fluid-handling technology to develop new applications, with additional orders largely served using existing production capacity to improve fixed-cost absorption.
The Sales Push initiative has already shown early success: in the first nine months of 2026, cumulative lifetime sales won in the Mobility & New Energy business unit increased by approximately 45% year-over-year. NORMA Group is also optimizing its manufacturing footprint, including consolidating sites in China, concentrating production in Mexico, closing a distribution center in Australia, and planning the closure of its Singapore regional office, while strengthening its Shared Service Center in Novi Sad, Serbia. In EMEA, where nine production sites are structurally underutilized, the company 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 EUR 20 to 30 million by 2031. Together with the transformation program, which simplifies the organization and automates core processes, NORMA Group anticipates total additional annualized EBIT savings of EUR 70 to 90 million by 2031 compared to fiscal year 2026.
CFO Okan Celiker stated that the financial ambition is backed by clear operational measures already underway, combining profitable volume growth, improved product mix, higher capacity utilization, and strict working capital discipline to enhance margins and cash flows. The company also announced a new dividend policy starting in fiscal year 2027, targeting a payout ratio of at least 10% of adjusted Group Net Income, alongside potential share buybacks. This policy aims to maintain a reliable base dividend while increasing financial flexibility for growth investments. NORMA Group prioritizes a strong balance sheet, targeting a net debt to adjusted EBITDA ratio of up to 1.5x in the medium term, and will allocate capital only where strategic fit and risk-adjusted returns meet its value-creation criteria.
The NewNORMA strategy positions NORMA Group to strengthen its competitiveness and financial performance in a challenging industrial landscape. With a clear focus on operational excellence and disciplined capital allocation, the company aims to deliver sustainable value for stakeholders. Further details are available in the Strategy Update 2026 presentation on the company's website, and the original release can be viewed on www.newmediawire.com.
