Norrhydro Group Plc - Company announcement 15TH July 2025, 8 AM
This announcement is a summary of Norrhydro Group Plc's half-year (January-June 2025) report. Full half-year report is attached and available on Norrhydro's website https://www.norrhydro.com/en/investors-reports-and-presentations.
Norrhydro is a Finnish forerunner in motion control and one of the leading providers of energy-efficient hydraulic cylinders in the Nordic countries.
January - June 2025 summary:
- Turnover increased 13,5 % to EUR 14,878 (13,110) thousand
- EBITDA was EUR 1,226 (772) thousand
- EBITDA margin was 8.2 % (5.9 %)
- Operating profit was EUR 573 (106) thousand
- Earnings per share were EUR 0.001 (-0.040)
| Thousand euros | 1.1.-30.6.2025 | 1.1.-30.6.2024 | Change | 1.1.-31.12.2024 |
| Turnover | 14,878 | 13 110 | 13.5 % | 24,228 |
| EBITDA | 1,226 | 772 | 58.8 | 1,258 |
| EBITDA, % | 8.2 % | 5.9 % | 5.2 % | |
| Operating profit | 573 | 106 | 441 % | -85 |
| Operating profit, % | 3.8 % | 0.8 % | -0.3 % | |
| Profit for the financial period | 8 | -443 | -1,321 | |
| Profit for the financial period, % | 0.1 % | -3.4 % | -5.5 % | |
| Cash flow from business operations | 394 | 1 072 | 878 | |
| Return on investments, % | 3.1 % | 0.6 % | -0.45 % | |
| Return on equity, % | 0.1 % | -5.0 % | -15.72 % | |
| Equity ratio, % | 32.4 % | 36.4 % | 33.2 % | |
| Current ratio | 1.07 | 1.43 | 1.09 | |
| Quick Ratio | 0.34 | 0.47 | 0.21 | |
| Earnings per share, undiluted, € | 0.001 | -0.040 | -0.120 | |
| Earnings per share, diluted € | 0.001 | -0.038 | -0.112 | |
| Personnel at the end of the period | 145 | 160 | 151 |
Guidance for 2025
The company expects net sales in 2025 to be higher than in 2024 (EUR 24,228 thousand) and reported EBITDA to be better than in 2024 (EUR 1,258 thousand.
CEO's review: Growth in market demand and strong operational performance helped Norrhydro's return to growth
The year 2025 began with weak market demand, which persisted throughout the entire first half of the year. Strikes within the industry also had a negative impact on demand at the beginning of the financial year. In the spring, and especially during the second quarter, demand began to grow, and throughout the entire first half of the year, demand was at a higher level compared to the previous year.
During the first six months of 2025, revenue increased by 13,5 % compared to the same period in 2024. The company's profitability also improved alongside the growth in revenue. As the overall market is expected to grow by approximately 3-4% in 2025, the company's growth clearly outperformed the market.
The production facility is now operating exceptionally well, and Norrhydro's operational capabilities were outstanding at the end of the first half of 2025. The company achieved a 100% OTD (On-Time-Delivery), and both product quality performance and occupational safety remained at excellent levels. The high standard of operations is further supported by the strong delivery reliability of our suppliers and the flexibility of our supply chain - our supplier network has been able to effectively respond to increased demand.
Growth in the cylinder market is concentrated in a few specific sectors, such as mining, material handling, and industries related to the defence sector. In contrast, demand in construction-related industries has not yet shown any significant recovery and remains at a very low level.
The forecasts of our customers indicate overall growth for autumn 2025, compared to the second half of 2024. Accordingly, our guidance for revenue growth in 2025 compared to the previous year remains in line with our expectations. At the same time, profitability is also expected to improve, driven by the increased volumes.
However, geopolitical uncertainties and trade tensions may impact growth figures for autumn 2025. The latest TeknoBaro report published by the Federation of Finnish Technology Industries in June noted that the growth which began in the spring has already stalled. At this stage, it remains difficult to predict how these changes will affect different sectors and customers later this year.
During the first half of the year, we initiated strategic investments in marketing and sales to support the growth of the NorrDigi®-business. The NorrDigi -products have reached maturity, and sales efforts will be further intensified during the current year. There is notable growth in activity on the electric cylinders (EMA) side, especially in terms of initial technology evaluations and an increasing number of quotations and orders. We expect the revenue of EMA products to grow in 2025 compared to the previous year.
Field testing of the NorrDigi MCC is ongoing, with results continuing to be highly encouraging. Feedback from excavator operators regarding machine performance, productivity, and energy efficiency has been positive. We are moving forward with plans to bring the MCC excavator solution to market.
Norrhydro's organization and operational performance are at an excellent level to meet growing customer demand and support the expansion of the NorrDigi-business.
Yrjö Trög
CEO
Further information:
Yrjö Trög
CEO, Norrhydro Group Oyj
Tel. +358 40 029 1229
Email: yrjo.trog@norrhydro.com
Certified advisor:
Translink Corporate Finance Oy
Jari Lauriala, Managing Partner
Tel. +358 40 091 8855
Email: jari.lauriala@translinkcf.fi
Sami Miettinen, Partner
Tel. +358 400 735 835
Email: sami.miettinen@translinkcf.fi
Distribution:
Nasdaq Helsinki Oy
Key Media
https://www.norrhydro.com/en
Norrhydro Group Plc in brief
Norrhydro, founded in 1985, is a Finnish forerunner in motion control and a provider of energy-efficient hydraulic cylinders and system suppliers specialising in high-quality, customised and energy-efficient hydraulic cylinders and demanding linear motion control systems and mobile equipment. The company has nearly 40 years of experience in developing and manufacturing customised hydraulic cylinders and liners motion control systems for the most demanding conditions and environments. In 2024, the company generated revenues of EUR 24,2 million, EBITDA of EUR 1,3 million and operating profit of EUR -0.09 million.
