Finland’s Normet will sharpen its strategic focus on large underground mining and tunnelling projects as it looks to hit circa-15% annual net sales growth targets over the next three years.
The privately-owned manufacturer says its record €566 million (US$650 million) 2025 order intake, up 25% year-on-year, was dominated by underground mining equipment sales. Its rebranded Xrock mining business also landed “several important service agreements”.
CEO Ed Santamaria said he was “particularly pleased that many of the equipment orders last year came with long-term service agreements”.
“We also secured two long-term contracts for Normet rock reinforcement products in Canada and Finland.”
Normet has initiated a €20 million cost-cutting drive, after its profitability was said to have improved towards the end of 2025, on the back of a €17 million yoy decline in operating profit to €39 million for its latest full year. Total sales were down 2.3% to €471 million (US$543 million) in 2025.
Normet’s average EBIT margin for 2025 was 8.3% compared with 11.6% the previous year. Its gearing was at 87.4% at the end of the year.
“Our sales and profitability were lagging our expectations due to both external and internal reasons … mainly because we could not turn those major orders into sales in a timely manner as planned, deficiencies in managing currency headwinds and inefficiencies in internal operations,” Santamaria said.
“Our performance clearly improved towards the end of the year, driven by strong recovery in equipment delivery volumes and better cost efficiency. In the fourth quarter, our net sales rose by 7.2% to €145 million and comparable operating profit increased by 3.1% to €21 million, representing a margin of 14.5%.”
Santamaria described customer and investment activity in the mining industry as robust. Interest in electrification and automation solutions “accelerated further”, he said.
“Demand for Normet’s products and expertise, customer process improvements, services and consumables is expected to remain at a good level in the medium term.
“The strategic focus areas for growth are major underground mining projects, services, the Xrock mining business and strategic tunnelling markets. Normet’s technological advancements leverage electrification, automation and digitalisation to deliver safer, cleaner and more efficient solutions for customers.”
After a “modest start” to 2025, Normet’s equipment sales recovered in the second half but not enough to avoid a 16.7% yoy decline in revenue. The equipment order backlog was at a record high €164 million at the end of 2025.
