Tomra Systems (TOM) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenues were €306 million, down 6% year-over-year, with declines in Collection (-5%), Recycling (-32%), and Food (-2%), while Food showed resilience with improved profitability and record order backlog.

• Gross margin improved to 44% from 43% last year, despite revenue declines.

• Adjusted EBITA fell to €30 million (10% margin) from €44 million (13% margin) in Q3 2024, reflecting lower profitability in Recycling and Collection.

• EPS adjusted for special items was €0.05, down from €0.07.

• Cash flow from operations was €64 million, compared to €99 million last year.

Financial highlights

• Group revenue for Q3 was €306 million, down 6% year-over-year.

• EBITDA was €30 million with a margin of 10%.

• Collection revenue was €179 million (down 5%), Recycling €40 million (down 32%), and Food €76 million (down 2%).

• Gross margin improved to 44% from 43% last year.

• Cash flow from operations was €64 million in Q3 and €147 million year-to-date.

Outlook and guidance

• Collection expects 5% revenue growth in existing markets for 2025, with overall growth dependent on new market rollouts in Poland and Portugal.

• Recycling revenue for 2025 is estimated to decline 15%-20% due to ongoing weak market sentiment, with uncertainty possibly extending into 2027.

• Food revenue growth for 2025 is estimated at mid-single digits, with an EBITDA/EBITA margin target of 10%-11%.

• Horizon segment OpEx for 2025 is estimated south of €20 million, with CapEx at €30 million, mainly for Feedstock plants.

• Long-term demand driven by sustainability megatrends; positioned for growth in circular solutions.