The engineered joining and fluid handling technology specialist Norma Group cannot currently escape the pull of the automotive industry. Since the first signs of slowdowns in the key sector emerged, its stock price has been stagnating, hovering around 12 euros. It has become crucial to make it clear to investors and analysts that Norma, which is headquartered at Maintal near Frankfurt, is not just an automotive supplier. Products for water management and other industries, which are already part of the portfolio, are expected to grow in importance, while the share of its automotive business will decrease.

„Currently, we still generate about 60% of our revenue from the automotive industry, but we aim to reduce that to 40% in the future“, Sebastian Lehmann, who heads Norma Group’s Investor Relations and Corporate Social Responsibility departments, explains in an interview with Börsen-Zeitung. „We want to grow disproportionately in water and industry applications, so that these areas make up around 60% of our total revenue.“

In the investor community, the growing importance of the non-automotive businesses is already reflected. „Many sustainability funds from the UK and France are invested“, says Charlotte Brigitte Looß, Senior Manager, Investor Relations. „The water theme is particularly important to them – but they are also very focused on the margins“, she explains.

The product mix of water, emission-free e-mobility, and the industrial sector, with many customers from the renewable energy segment is attractive, Lehmann adds. He previously managed the Investor Relations division at Edag Engineering , a listed development service provider for the mobility industry.

From an investor perspective, it’s also notable that the machinery Norma Group uses for its automotive products can also be used for products in the aerospace, solar energy, or climate control sectors. „This is why we don’t have a massive investment requirement", he explains.

Due to the downturn in the German and European auto industries, the regional distribution of revenues has become more important. Nearly half of Norma Group's revenue (47%) comes from North and South America. This development is a result of historical factors, as most of the water business originated in the US via acquisitions.

A significant portion of investors, 29% to be exact, are from the US. However, Norma cannot escape the high operating costs in Germany, particularly for energy and labour, says Ivana Blazanovic, the other Senior Manager in the IR team. Investors aren't affected by the negative sentiment within Germany. Rather, they view the advantages that Germany has with highly skilled engineers and other professionals.

The fast-growing water business is also attracting attention. Some analysts speculate that spinning off this segment could be an idea. Whether there is any pressure from investors was not commented on by the IR team, who emphasised that the dialogue with all shareholders remains constructive. The three-person IR team at Norma Group sees itself as a well-coordinated unit that can „blindly rely on each other“. Their enthusiasm for the company is evident. They emphasise the importance of getting to know Norma and its products. „Do you drive a car? The exhaust pipe of your car is surely held by a Norma clamp“, says Looß.

Norma Group parts can also be found in washing machines, adds Blazanovic, providing a striking example of the wide application of their products. Blazanovic, who joined the company six years ago, has a background in banking, a degree in economics and financial communication, and experience in consulting. Looß and Lehmann have only recently joined the company, but both bring diverse experience in investor relations from elsewhere.

CEO Guido Grandi has been with the company since June 2023. According to Looß, both Grandi and CFO Annette Stieve – he as an engineer and she as a finance expert – are highly engaged in investor relations, and cover a wide range of themes.