TORM (TRMD) Q1 2025 earnings summary

Executive summary

• Achieved solid Q1 2025 results with net profit of USD 63 million, EBITDA of USD 136 million, and TCE of USD 214 million, reflecting market stabilization after late 2024 volatility.

• Freight rates stabilized sequentially but remained significantly lower year-over-year, with net profit and EBITDA down compared to Q1 2024.

• Divested three 20-year-old or 2005-built MR vessels and one 17-year-old LR2 vessel, reducing fleet size to 91 vessels and generating a profit of USD 9.4 million.

• Market remains dynamic with shifting sentiment, ongoing geopolitical uncertainty, and emerging factors requiring agility.

Financial highlights

• TCE earnings for Q1 2025 were USD 214 million, with a fleetwide TCE rate of USD 26,807 per day and EBITDA of USD 136 million.

• Basic EPS for Q1 was USD 0.64; dividend declared at USD 0.40 per share, with a payout ratio of 62%.

• Average broker fleet valuation declined to USD 3.1 billion, down 12% from year-end, mainly due to older vessel value drops.

• Net interest-bearing debt stands at USD 832 million, with a stable net loan-to-value of 27%.

• Free cash flow improved to USD 126.5 million from USD 25.7 million year-over-year.

Outlook and guidance

• Full-year 2025 TCE earnings forecast narrowed to USD 700–900 million (previously USD 650–950 million); EBITDA guidance at USD 400–600 million.

• 43% of 2025 earning days fixed at USD 27,829 per day as of May 5, 2025; 57% of Q2 2025 coverage at USD 28,026 per day.

• Guidance range narrowed due to increased market visibility, but volatility remains due to geopolitical factors and oil demand growth.

• A USD 1,000 change in freight rates per day would impact EBITDA by approximately USD 18 million.