NORMA Group's NewNORMA Strategy Targets Profitable Growth and Efficiency Through 2031

NORMA Group, an international market leader in engineered and standardized connecting technology, has provided details on its NewNORMA strategy and set financial ambitions through 2031. The strategy focuses on accelerating profitable growth, improving capacity utilization, and reducing structural costs, with potential implications for Texas businesses that rely on connecting technology solutions.

At its Strategy Update in Frankfurt, NORMA Group outlined three key initiatives: Sales Push, Footprint optimization, and Transformation. These initiatives are designed to increase utilization of the company's existing asset base through profitable business while reducing its structural cost base. The company aims to achieve average annual sales growth before currency effects of 1 to 3%, an adjusted EBIT margin of more than 10%, and cash conversion of over 70% by 2031.

For readers in Texas, the strategy matters because NORMA Group's connecting solutions are used in electric and combustion vehicles, ships and aircraft, energy and infrastructure systems, machinery, pharma, agriculture, white goods, and buildings. As the company strengthens its competitiveness and expands into new application fields such as data centers, battery energy storage systems, heat pumps, and household appliances, Texas industries could benefit from more efficient and innovative connecting technologies.

The NewNORMA strategy is based on two strategic business units: Mobility & New Energy, the Group's resilient core business, and Industry Applications, the driver of profitable growth. Starting in 2027, NORMA Group will align its internal management structure with these two global units, giving each end-to-end responsibility for customers, pricing, growth, capacity utilization, and financial performance. This streamlined approach is expected to shorten decision-making processes and enable faster execution.

As part of the Sales Push, NORMA Group is intensifying commercial execution and strengthening customer relationships. 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 company is also aligning itself with demand, costs, and customer requirements by flexibly allocating orders across its global network. Measures already implemented or underway include consolidating manufacturing sites in China, concentrating production in Mexico, closing a distribution center in Australia, and planning to close the regional office in Singapore. NORMA Group is also strengthening its Shared Service Center in Novi Sad, Serbia, and intends to consolidate production in EMEA, where its nine production sites are structurally operating below capacity.

By 2031, NORMA Group expects these measures to generate an additional annualized EBIT contribution of approximately EUR 20 to 30 million from footprint optimization and total additional annualized EBIT savings of approximately EUR 70 to 90 million from the transformation program compared to fiscal year 2026.

Okan Celiker, Group CFO, stated: “Our financial ambition is underpinned by clear operational measures that we have already started implementing and will continue to expand systematically. We are combining profitable volume growth and an improved mix with higher capacity utilization, lower structural costs, and strict working capital and investment discipline. This is how we will improve our margins and translate operational improvements into stronger cash flows.”

The company 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. NORMA Group will maintain a reliable base dividend while increasing financial flexibility to invest in profitable growth and potentially carry out share buybacks. The presentations from Strategy Update 2026 and further information are available on the company's website.

With around 6,000 employees and a global network of 19 production sites, NORMA Group generated sales of around EUR 820 million in 2025. The company's strategic focus on operational execution and disciplined capital allocation could serve as a model for Texas businesses looking to enhance competitiveness and financial strength. The original release can be viewed on NEWMEDIAWIRE.