Tomra Q3 revenue misses expectations, recycling weakness, sends shares down 12%

Published 17/10/2025, 07:44
Updated 17/10/2025, 09:26
© Reuters.

Investing.com -- Tomra Systems (OL:TOM), the Norwegian recycling and food solutions company, saw its shares drop more than 12% Friday after reporting third-quarter 2025 results below expectations.

Group revenue for the quarter was €306 million, down 6% from €326 million in Q3 2024 and 6% below consensus of €326 million. 

Gross margin rose slightly to 44% from 43% a year earlier. EBITA margin declined to 10%, compared with 13% in Q3 2024, driven by negative performance in the Recycling division. 

Collection recorded a 16% EBITA margin, Food a 10% margin, and Recycling a negative 8% margin.

Revenue in the Collection segment reached €179 million, down 5% from €189 million in Q3 2024 and below the €201 million expected by analysts.

The decline reflected slow commercial activity in newly launched and upcoming deposit markets.

Recycling revenue fell to €40 million, a 32% drop from €59 million in Q3 2024 and slightly below the €43 million consensus. 

Sales declined across most regions, particularly in Europe and North America. Food revenue totaled €76 million, down 2% from €78 million in Q3 2024 but above the €75 million consensus.

Order intake mirrored the revenue trends. Recycling bookings were €42 million, up 2% sequentially from €41 million in Q2 2025 but down 31% from €61 million in Q3 2024. 

Food order intake was €77 million, down 27% sequentially from a record €106 million in Q2 2025 but up 5% year-over-year from €73 million in Q3 2024.

Tomra also announced its first publicly disclosed large order in Poland. Dino Polska, a major retail chain, ordered 3,000 reverse vending machines, with installations set to begin in the coming weeks and continue into the first half of 2026. 

Based on an estimated unit price of €20,000-25,000, the order could generate €60-75 million in revenue, primarily in fiscal 2026. 

The total Polish market is estimated at roughly 15,000 machines, giving Tomra approximately 20% of the market at this stage.

The company’s medium-term guidance remains unchanged. Tomra projects a 15% compound annual growth rate in revenue from 2023 to 2030, an EBITA margin of 18% by 2030, a return on capital employed above 18% by 2030, and a dividend payout of 40-60% of earnings per share.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.