Tomra Systems (TOM) Q1 2025 earnings summary

Executive summary

• Revenue increased 5% year-over-year to EUR 306 million in Q1 2025, with strong growth in the Food segment and gross margin improving to 43%.

• EBITDA/EBITA rose to EUR 26 million from EUR 15 million in Q1 2024 (adjusted), with no one-off items this quarter.

• Cash flow from operations surged to EUR 65 million from EUR 19 million in Q1 2024.

• Food division achieved record Q1 EBITDA/EBITA and double-digit growth in both revenue and new orders; Collection remained stable, and Recycling matched last year's revenue but saw softer order intake.

• EPS improved to 0.03 EUR, up from 0.01 EUR (adjusted for special items).

Financial highlights

• Revenue: EUR 306 million (+5% YoY); EBITDA/EBITA: EUR 26 million; Gross margin: 43% (up from 40%).

• Operating expenses rose 3% to EUR 104 million; strong cost control maintained.

• Return on capital employed: up to 23% (from 19% in Q1 2024).

• Equity ratio: 38%; gearing/NIBD-EBITDA: 1.6x.

• Cash and cash equivalents: EUR 91 million; liquidity buffer includes EUR 143 million undrawn credit.

Outlook and guidance

• Collection: High activity expected in both existing and new markets; 5% revenue growth in existing markets anticipated for 2025.

• Poland and Portugal to drive new market growth; Poland go-live in October 2025, Portugal in early 2026.

• Recycling: Growth expected in 2025, but below mid-single digit due to macro uncertainty and trade tensions; 50% of backlog expected as next quarter revenue.

• Food: Low to mid-single-digit growth expected for 2025; gross margin in mid-40% and EBITDA/EBITA margin of 10-11%; 75% of backlog expected as next quarter revenue.

• Horizon: Norwegian plant to start operations in 2025, with positive EBITDA run rate expected by year-end; EUR 40 million CapEx planned for Feedstock sorting plants.