NORMA Group has disclosed the operational and financial details of its NewNORMA strategy, setting ambitions through 2031 that include average annual currency-adjusted sales growth of 1 to 3 percent, an adjusted EBIT margin above 10 percent, and cash conversion exceeding 70 percent. The announcement, made at the company’s Strategy Update in Frankfurt, marks a shift from portfolio and capital measures to operational execution, according to the release distributed via NEWMEDIAWIRE.
The strategy rests on two realigned business units. Mobility & New Energy is positioned as the group’s resilient core, focused on strengthening competitiveness, improving asset utilization, and generating cash. Industry Applications is designated the driver of profitable growth, with plans to expand selectively into structurally attractive markets such as data centers, battery energy storage systems, heat pumps, and household appliances. Starting in 2027, both units will assume end-to-end responsibility for customers, pricing, growth, capacity utilization, and financial performance.
Three interconnected initiatives—Sales Push, Footprint optimization, and Transformation—are intended to deliver the targets. NORMA Group said cumulative lifetime sales won in Mobility & New Energy rose about 45 percent in the first nine months of 2026 compared with the prior-year period. On footprint, the company has consolidated manufacturing sites in China, concentrated production in Mexico, closed a distribution center in Australia, and plans to close its regional office in Singapore while strengthening its shared service center in Novi Sad, Serbia. Its EMEA network of nine production sites is operating structurally below capacity, and consolidation there is expected to contribute roughly EUR 20 million to 30 million in annualized EBIT by 2031. Together with the transformation program, NORMA Group expects total additional annualized EBIT savings of approximately EUR 70 million to 90 million by 2031 versus fiscal 2026.
Chief Executive Birgit Seeger said the company has a strong industrial foundation it intends to leverage more effectively by intensifying commercial activities, better using production assets, and reducing structural costs. Chief Financial Officer Okan Celiker said the financial ambition is underpinned by measures already being implemented, combining volume growth and an improved mix with higher capacity utilization and strict working capital and investment discipline.
Capital allocation will prioritize a strong balance sheet, with a medium-term target of net debt to adjusted EBITDA of up to 1.5 times, and will favor organic growth. The Management Board has also resolved to change the dividend policy: from fiscal year 2027, the payout will target at least 10 percent of adjusted Group Net Income, subject to the company’s economic situation and liquidity, alongside potential share buybacks.
The plan matters because it commits one of the automotive and industrial supplier sector’s established players to measurable margin and cash targets while restructuring its manufacturing base in Europe. NORMA Group, which generated sales of around EUR 820 million in 2025 and employs roughly 6,000 people across 19 production sites, is betting that additional orders can be served largely with existing capacity, improving fixed-cost absorption. The full presentation is available through the original release.
