Normet sees record orders despite sales slowdown

Normet Group has reported record quarterly orders for its underground equipment and services, though profitability was held back by delivery delays and currency headwinds.

In its half-year report to the end of June 2025, the Finnish tunnelling and mining equipment specialist announced that order intake in Q2 rose 47% year-on-year to €174 million (£147 million), the highest in the company’s history. Growth was driven by strategic projects across several markets, with additional service agreements expected to be finalised in the second half of the year.

However, net sales fell 10% to €108 million (£91 million) due to slower deliveries and adverse exchange rates. Comparable operating profit dropped to €8 million (£6.8 million), down from €15 million (£12.6 million) in the same period last year.

For the first half of 2025, Normet’s order intake rose 24% to €285 million (£240 million), but net sales slipped 10.5% to €209 million (£176 million). Operating profit fell to €11 million (£9.2 million), from €27 million (£22.7 million) a year earlier.

Chief executive Ed Santamaria said: “We secured record new orders of €174 million in Q2, including several key strategic projects critical for Normet’s longer-term future. However, net sales development was disappointing, coming in 10% below last year due to slower equipment deliveries and negative FX impacts.”

He added that production capacity has been expanded to manage the growing backlog and improve deliveries in the second half of 2025.

Normet is also investing in electrification and automation technologies to support major new contracts, though upfront costs have added pressure to short-term profitability.

Despite the financial challenges, the company expects demand for tunnelling and underground solutions to remain strong, underpinned by growth in civil engineering, mining, and infrastructure projects worldwide.