Normet’s Annual Report for 2025 has been published

Normet Group published its Annual Report 2025 on March 23, comprising the Financial Statements and the Report by the Board of Directors. The report also contains sustainability reporting and is available at the company's website.

Analysis

An annual financial and sustainability disclosure from a niche underground-mining equipment supplier is a high-information event for second-order flows: aftermarket/service mix, order backlog cadence, and ESG compliance details disproportionately affect procurement decisions at large miners over 6–24 months. If service revenue share is >30% (or growing), that implies earnings durability through a cyclical downturn and less sensitivity to spot metal prices; conversely, a low recurring share signals headline revenue volatility and greater dependence on new-build capex.

The most fungible knock-on effects are in the supplier ecosystem and in battery/critical-minerals miners: stronger backlog or ESG certification accelerates wins in European and North American tenders, creating a 6–18 month tailwind for specialist OEMs (higher margin capture) and a lagged capex advantage for juniors supplying battery metals (more predictable order flow). Key catalysts to watch in the next 3–12 months are order-intake updates, major tender awards from tier-1 miners, and any stated capex plans; reversals occur if order cancellations spike >15% QoQ or if miner capex guidance is cut by >20% following commodity weakness.

A common market miss is underpricing the procurement premium from credible ESG certification: inclusion in preferred vendor lists can lift pricing power by 3–7% and shorten sales cycles, effects that compound over 2–3 years. Equally, the market can overprice immediate electrification benefits — hardware lead times and retrofit cycles mean much of the EV/automation upside accrues to service and software over 24+ months, not instantly. Use the next quarterly updates as binary catalysts to reweight exposure between specialist OEMs (capture aftermarket/ESG premium) and generalized heavy-equipment names (higher cyclical beta).

Key Decisions for Investors

• Long SAND.ST (Sandvik) — 12–18 month horizon. Entry on a <=10% pullback from current levels; target +30%, stop -12%. Rationale: capture specialist underground/electrification wins and aftermarket resiliency if preferred-vendor premiums materialize.
• Long ATCOA.ST (Atlas Copco A) — 9–15 month horizon. Buy into weakness after next order-intake release; target +25% with a -10% stop. Rationale: recurring service revenue and rental footprint cushion margins and shorten payback on ESG-driven tenders.
• Pair trade: Long EPI.A.ST (Epiroc) / Short CAT (Caterpillar) — 6–12 month horizon, equal notional. Target relative outperformance of Epiroc by 15% (netting ~+20% gross if CAT flat); stop if Epiroc underperforms CAT by >10%. Rationale: specialist OEMs gain share in underground electrification and aftermarket vs diversified OEM cyclicality.
• Event hedge: Buy 3–6 month puts on large diversified OEM (e.g., CAT) sized to cover portfolio exposure if next-quarter global miner capex guidance falls >15%. Cost-to-hedge acceptable if it protects >50% of portfolio mining-equipment beta for the catalyst window.