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 sales growth before currency effects of 1 to 3%, an adjusted EBIT margin of more than 10%, and cash conversion of over 70% by 2031. The strategy builds on the realignment of two strategic business units: Mobility & New Energy, which forms the resilient core business, and Industry Applications, which drives profitable growth. CEO Birgit Seeger stated that the strategy lays the groundwork for a successful future by intensifying commercial activities, better utilizing production assets, and reducing structural costs. The announcement matters because it signals a shift from portfolio measures to operational execution, with clear initiatives—Sales Push, Footprint optimization, and Transformation—aimed at accelerating profitable growth and improving cash generation.
The Sales Push initiative focuses on winning profitable business to improve capacity utilization, with cumulative lifetime sales won in Mobility & New Energy up approximately 45% in the first nine months of 2026 compared to the prior year. Footprint optimization includes consolidating manufacturing sites in China, concentrating production in Mexico, closing a distribution center in Australia, and planning to close the regional office in Singapore, while strengthening the Shared Service Center in Novi Sad, Serbia. In EMEA, where nine production sites are 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 aims to simplify the organization, standardize and automate core processes, and strengthen performance management, with total additional annualized EBIT savings of approximately EUR 70 to 90 million by 2031 compared to fiscal year 2026.
Starting in 2027, NORMA Group will align its internal management structure with the two global strategic business units, giving each end-to-end responsibility for customers, pricing, growth, capacity utilization, and financial performance. This SBU-led operating model is designed to shorten decision-making and enable faster execution. The company also plans to leverage its engineering expertise to develop new applications in data centers, battery energy storage systems, heat pumps, and household appliances, serving additional orders largely with existing production capacity. CFO Okan Celiker noted that the financial ambition is underpinned by clear operational measures already being implemented, combining profitable volume growth with higher capacity utilization and lower structural costs.
NORMA Group has also resolved to change its dividend policy. Starting in fiscal year 2027, the dividend payout will target a payout ratio of at least 10% of adjusted Group Net Income, subject to the company's economic situation and liquidity position. The revised policy maintains a reliable base dividend while increasing financial flexibility to invest in profitable growth and potentially carry out share buybacks. Capital allocation will prioritize a strong balance sheet, with a medium-term target of net debt to adjusted EBITDA of up to 1.5x, and focus on organic profitable growth. The full details are available in the original release on www.newmediawire.com, as distributed by NEWMEDIAWIRE.
