Norrhydro Group Plc - Company Announcement 19 February 2026 at 8:00 AM
This announcement is a summary of Norrhydro's Financial Statement Bulletin, period January-December 2025. Financial Statement Bulletin is attached and available on Company's website:
https://www.norrhydro.com/en/investors-reports-and-presentations
Norrhydro is a Finnish pioneer in motion control and one of the leading providers of energy-efficient hydraulic cylinders in the Nordic countries.
Topics in Financial Statements Bulletin
January-December 2025 in brief
- Turnover increased 18.5 % to EUR 28,702 (24,228) thousand
- EBITDA was EUR 2,651 (1,258) thousand
- EBITDA margin was 9.2 % (5.2 %)
- Operating profit was EUR 1,352 (-85) thousand
- Profit for the period was EUR 233 thousand, 0.8 % of the turnover
- Earnings per share were EUR 0.021 (-0.120)
- Diluted earnings per share were EUR 0.020 (-0.112)
- Return on equity was 2.9 % (-15.72 %)
- Equity ratio was 34.6 % (33.2 %)
- Cash flow from business operations was EUR 1,057 (878) thousand
July-December 2025 in brief
- Turnover increased 24.3 % to EUR 13,824 (11,118) thousand
- EBITDA was EUR 1,424 (486) thousand
- EBITDA margin was 10.3 % (4.4 %)
- Operating profit was EUR 779 (-191) thousand
- Profit for the period was EUR 225 (-878) thousand
- Earnings per share were EUR 0.020 (-0.08)
- Diluted earnings per share were EUR 0.019 (-0.07)
| Thousand euros | 1 July -31 Dec. 2025 | 1 July -31 Dec.2024 | Change | 1 Jan. -31 Dec. 2025 | 1 Jan. -31 Dec. 2024 | Change |
| Turnover | 13,824 | 11,118 | +24.3 % | 28,702 | 24,228 | +18.5 % |
| EBITDA | 1,424 | 486 | +192.8 % | 2,651 | 1,258 | +110.7 % |
| EBITDA, % | 10.3 % | 4.4 % | 9.2 % | 5.2 % | ||
| Operating profit | 779 | -191 | +508.2 % | 1 352 | -85 | +1,690.6 % |
| Operating profit, % | 5.6 % | -1.7 % | 4.7 % | -0.3 % | ||
| Result for the financial period | 225 | -878 | 233 | -1,321 | ||
| Result for the financial period, % | 1.6 % | -7.9 % | 0.8 % | -5.5 % | ||
| Cash flow for business operations | 1,057 % | 878 | ||||
| Return on investment, % | 7.58 % | -0.5 % | ||||
| Return on equity, % | 2.90 % | -15.7 % | ||||
| Equity ratio, % | 34.6 % | 33.2 % | ||||
| Current ratio | 1.07 | 1.09 | ||||
| Quick ratio | 0.21 | 0.21 | ||||
| Earnings per share, undiluted € | 0.020 | -0.08 | 0.021 | -0.120 | ||
| Earnings per share, diluted, € | 0.019 | -0.07 | 0.020 | -0.112 | ||
| Personnel at the end of the period | 135 | 151 |
Estimate of probable future development and guidance for 2026
Assessing the development of the Group's revenue at the beginning of 2026 remains challenging due to the prolonged uncertainty in the global economy. Some customer industries are showing signs of recovery, but the economic climate in European manufacturing is still weak, and investment decisions are progressing cautiously. However, we expect the gradual recovery of the economy to continue during 2026
The Group aims to continue its growth-oriented strategy and expand its business by increasing its own market share in the hydraulic cylinder market, as well as by introducing new digital, energy-efficient, and intelligent products and services to the market.
The Group's medium-term objective is to achieve revenue of over EUR 70 million, of which more than 30 % will consist of digital products and solutions. In addition, the Group aims to achieve an EBITDA margin of at least 16 %, with digital business accounting for 4 %.
Investments in product development, the visibility of digital solutions, and customer acquisition will continue during the current financial year. Digital products have transitioned from the development phase to a focus on marketing and sales.
The Company estimates that its business will continue to develop positively in 2026 and expects revenue to be EUR 30,000-32,000 thousand (EUR 28,702 thousand in 2025) and reported EBITDA to be EUR 3,000-4,000 thousand (EUR 2,651 thousand in 2025). The main focus of growth is expected to occur in the second half of 2026.
Proposal for the Distribution of Profits
The parent company's distributable funds as at 31 December 2025 amounted to EUR 10,205,811.98, of which the loss for the financial year is EUR -237,753.27.
The Board of Directors' proposal for the distribution of profits:
- The Board of Directors will be authorized to decide on the payment of a return of capital so that a maximum of EUR 0.04 per share may be distributed under the authorization, amounting in total to no more than EUR 443,444.76, based on the number of shares on the date of the notice to the Annual General Meeting.
- Under the authorization, the Board of Directors is entitled to decide, within the above limits, the amount of the return of capital, the record date, the payment date, and all other measures required for the distribution.
- Any return of capital under the authorization will be paid to shareholders who, on the record date, are registered in the Company's shareholder register maintained by Euroclear Finland Ltd. The Company will publish the Board's resolution as well as the record and payment dates, if such a decision is made.
- The ratio of return of capital per share may change if the number of the Company's shares changes after the date of this notice of the General Meeting.
- The authorization will remain valid until the beginning of the next Annual General Meeting.
- The parent company's loss for the financial year is transferred to retained earnings
Chief Executive Officer's report
Norrhydro returned to a path of profitable growth in 2025. Both revenue and profitability improved compared to the previous year, and revenue growth was supported by the recovery in demand within certain customer industries. Profitability strengthened as revenue and volumes increased, with fixed costs growing more slowly than the customers revenue.
During 2025, we increased our investments in sales and will continue to expand our marketing and sales efforts in 2026. Both quotation activity and sales have turned to growth, and our actions have enabled us to reach potential and new accounts. Sales cycles in our industry are relatively long, typically taking 1-3 years. We believe that increased investments and growing activity will support the Company's positive development in the current and coming years.
We will also continue our cost-reduction initiatives and the further development of operational performance. Through these activities, we will continue to improve our cost efficiency, customer service levels, and cash-flow performance.
Regarding digital products, the NorrDigi EMA actuators have reached a sufficient maturity level, and broader marketing and sales have begun. Electric actuators are being marketed globally, and we have identified several promising customer segments and markets for these products. We expect NorrDigi EMA sales to grow during the current financial year and in the years ahead.
With regards to NorrDigi MCC system, field testing is still ongoing. The system has largely reached its maturity level, but additional testing is still required specifically relating to the excavator and its operational functions. We expect all required tests to be completed during 2026, after which broader marketing and sales activities can begin.
Norrhydro's strategy has been refined, and our core strategy of being "the world's best cylinder manufacturer," Partner in Success, remains unchanged. Our product portfolio includes hydraulic cylinders, digital energy-efficient linear-motion systems, and electric actuators. The strategy has been consolidated into the One Norrhydro message, aimed at strengthening strategy understanding across the entire organization and among key stakeholders.
We expect profitable growth to continue during 2026.
Yrjö Trög
CEO
Norrhydro Group Plc
Release Event
Norrhydro Group Plc's Financial Statement 2025 will be released on webcast on Thursday 19rd February 2026 at 9 AM.
In a pre-recorded presentation, Norrhydro Group Plc's CEO Yrjö Trög and CFO & CHRO Johanna Kaikkonen present and comment on the Financial Statements 2025.
Presentation and webcast recording are available afterwards in Norrhydro's website:
https://events.inderes.com/fi/norrhydro/tulosjulkistus-2025
https://www.norrhydro.com/en/investors
Further information:
Yrjö Trög
CEO
Norrhydro Group Plc
Puh. +358?400?291 229
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 40 years of experience in developing and manufacturing customised hydraulic cylinders and liners motion control systems for the most demanding conditions and environments. In 2025, the company generated revenues of EUR 28.7 million, EBITDA of EUR 2.7 million and operating profit of EUR 1.4 million.
