NORMA Group has provided further details on its NewNORMA strategy and set financial ambitions through 2031, shifting focus from portfolio and capital measures to operational execution. The announcement, made at a Strategy Update in Frankfurt, outlines three key initiatives—Sales Push, Footprint, and Transformation—designed to accelerate profitable growth, improve capacity utilization, and reduce structural costs. 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.
"With our NewNORMA strategy, we are laying the groundwork for a successful future for NORMA Group," said CEO Birgit Seeger. "We have a strong industrial foundation that we now intend to leverage even more effectively. Our vision is a focused, high-performing NORMA Group – an Industrial Powerhouse for connecting technology." The strategy is built on two realigned strategic business units: Mobility & New Energy, which forms the resilient core business focused on competitiveness and cash generation, and Industry Applications, which drives profitable growth by expanding into structurally attractive markets such as data centers, battery energy storage systems, heat pumps, and household appliances.
Starting in 2027, NORMA Group will align its internal management structure with these two global business units, giving each end-to-end responsibility for customers, pricing, growth, capacity utilization, and financial performance. This SBU-led operating model is intended to shorten decision-making and enable faster execution. The Sales Push initiative is already showing results: 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.
The Footprint initiative involves 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 existing network of nine production sites is structurally operating below capacity, 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, reduce complexity, standardize and automate core processes, and strengthen performance management. Combined with the EMEA footprint optimization, NORMA Group expects total additional annualized EBIT savings of approximately EUR 70 to 90 million by 2031 compared to fiscal year 2026. "Our financial ambition is underpinned by clear operational measures that we have already started implementing," said Group CFO Okan Celiker. "We are combining profitable volume growth and an improved mix with 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 will maintain a reliable base dividend while increasing financial flexibility for growth investments and potential share buybacks. In the medium term, NORMA Group targets a ratio of net debt to adjusted EBITDA of up to 1.5x, prioritizing organic profitable growth. The full strategy presentation is available via the release on www.newmediawire.com.
