NORMA Group has provided details on its NewNORMA strategy, setting financial ambitions through 2031 and outlining a new dividend policy. The announcement, made at a Strategy Update in Frankfurt, follows major portfolio and capital measures and signals a shift toward operational execution. The strategy is built on three key initiatives—Sales Push, Footprint optimization, and Transformation—aimed at accelerating profitable growth, improving capacity utilization, and reducing structural costs.
According to the release, NORMA Group aims to achieve average annual currency-adjusted sales growth of 1 to 3% through 2031, an adjusted EBIT margin exceeding 10%, and cash conversion of over 70%. These targets are underpinned by a realignment into two strategic business units: Mobility & New Energy, which forms the resilient core business, and Industry Applications, which is positioned as the driver of profitable growth. The company plans to leverage its engineering expertise in fastening, connecting, and fluid-handling technology to expand into new applications such as data centers, battery energy storage systems, heat pumps, and household appliances.
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. "Our vision is a focused, high-performing NORMA Group – an Industrial Powerhouse for connecting technology," Seeger said. The realignment is expected to strengthen competitiveness, increase profitability, and improve cash generation.
As part of the Sales Push initiative, NORMA Group reported that cumulative lifetime sales won in the Mobility & New Energy business unit increased by approximately 45% in the first nine months of 2026 compared with the prior-year period. The company is also optimizing its manufacturing footprint, including consolidating sites in China, concentrating production in Mexico, closing a distribution center in Australia, and planning to close its regional office in Singapore. The EMEA network, with nine production sites, is operating below capacity, prompting consolidation to fewer sites and more targeted use of best-cost locations. By 2031, these measures are expected to generate an additional annualized EBIT contribution of approximately EUR 20 to 30 million.
Furthermore, the transformation program aims to simplify the organization, standardize and automate core processes, and strengthen performance management. Combined 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 commented that the financial ambition is backed by clear operational measures already underway, combining profitable volume growth with higher capacity utilization and lower structural costs.
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 target net debt to adjusted EBITDA ratio of up to 1.5x in the medium term and will prioritize organic growth and potential share buybacks. The full details are available in the original release on www.newmediawire.com.
