Normet reports higher Q3 sales but lower profitability

Normet Group reported mixed results for the third quarter of 2025, with net sales rising 3.4% to €117 million (£102 million) but profitability declining as equipment deliveries were deferred and currency movements negatively affected results.

Comparable operating profit fell 17.7% to €7 million (£6.1 million), representing 6.1% of net sales, compared with 7.7% a year earlier. At constant exchange rates, sales grew by nearly 10%, driven by higher demand in Asia Pacific, Europe, Eurasia and Africa.

For the first nine months of 2025, order intake rose 15.6% to €406 million (£353 million), reflecting strong demand for underground mining and tunnelling equipment. The order backlog for the Equipment business line increased to €143 million (£124 million) from €102 million (£88 million) last year.

However, group net sales fell 5.9% year-on-year to €326 million (£283 million) over the same period, with profitability dropping to €18 million (£15.6 million) or 5.5% of sales, compared with 10.3% last year.

“Our sales development continued to be short of expectations and our level of profitability is very disappointing,” said Ed Santamaria, CEO of Normet Group. “We are taking immediate action to improve efficiency and address our cost base. However, we are pleased with our new equipment orders and expect a stronger fourth quarter as production and logistics capacity improves.”

Normet noted early signs of recovery in its service and consumables businesses, supported by investments in sales capacity and supply-chain improvements. Several large service contracts are expected to close in the final quarter of 2025.

The company said customer interest in its battery-electric SmartDrive range and XRock breaker systems continues to increase, supported by robust mining activity and accelerating demand for electrification and automation solutions.

Product developments

In 2025, Normet expanded its SmartDrive range with new battery-electric platforms from XS- to L-series, catering for everything from confined-space operations to heavy-duty underground applications.

It also launched new concrete spraying equipment, including the Spraymec 9100, designed for large tunnel profiles and equipped with a low-pulsation concrete pump, 1,500-litre accelerator tank, and onboard compressor. Earlier in the year, Normet introduced the Spraymec 4100 and Spraymec 5100, enhancing sprayed concrete performance for small and mid-sized tunnels.

Cash flow and balance sheet

Operating cash flow for January–September 2025 totalled €22.8 million (£19.8 million), down from €30.7 million (£26.6 million) last year. Cash and cash equivalents stood at €34.5 million (£29.9 million) at period end. Gearing rose to 97.6% following the redemption of a €30 million hybrid bond in June.

Outlook

Normet expects demand for its mining and tunnelling equipment, services and consumables to remain strong through 2026. The company cited a healthy opportunity pipeline and continued investment in electrification, automation and sprayed concrete technologies.

“By implementing improvement initiatives and working closely with our teams and partners, we can achieve the much-needed turnaround in profitability,” Santamaria said.