Tomra Systems (TOM) Q4 2025 earnings summary

Executive summary

• Q4 2025 delivered record revenues in Collection, strong profitability in Food, and continued challenges in Recycling, with group revenue down 4% year-over-year to EUR 382 million.

• Collection segment saw robust growth in Continental Europe, driven by innovation and new market rollouts in Poland and Portugal.

• Food segment achieved record profitability and margin improvement, supported by automation and quality demands.

• Recycling faced a weak year due to challenging market sentiment, especially in plastics, but cost reduction initiatives and restructuring are underway.

• Horizon ventures, including c-trace and Feedstock, showed strong growth and positive EBITDA contributions.

Financial highlights

• Q4 revenue was EUR 382 million, down 4% year-over-year; full-year revenue EUR 1,318 million, down 2%.

• Adjusted EBITDA/EBITA for Q4 was EUR 71 million with a margin of 19%.

• Gross margin for Q4 was 46%, up from prior year.

• Cash flow from operations in Q4 was EUR 24 million, down due to timing effects and working capital buildup.

• Equity ratio at year-end was 35%, gearing at 2.3, and ROCE at 15.2%.

Outlook and guidance

• Collection expects mid-single digit annual growth in existing markets and EUR 100 million revenue from new markets in 2026.

• Recycling market challenges expected to persist through 2026, with cost savings of EUR 16 million targeted for full effect in 2027.

• Food projects mid- to high single-digit revenue growth in 2026, with gross margin in the mid-forties and EBITDA/EBITA margin improving toward mid-teens.

• Horizon ventures anticipate continued growth, with Feedstock aiming for positive EBITDA in 2026.

• CapEx for 2026 estimated at EUR 100 million, focused on core divisions.