Release Date: July 17, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Tomra Systems ASA (TMRAF, Financial) reported a record quarterly EBITA and order intake in its Food division, with an all-time high order backlog.
- The company experienced a 15% revenue increase in the Food division, driven by strong order intake across all regions and categories.
- Collection division revenues in existing markets grew by 5% in the first half of the year, aligning with strategic ambitions.
- Tomra Systems ASA (TMRAF) maintains strong cost control across divisions, with OpEx slightly down compared to the previous year.
- The Metals Recycling segment performed well, contributing positively to the company's overall performance.
Negative Points
- Recycling division faced weak order intake due to challenges in the plastic segment and macroeconomic uncertainties.
- The Collection division saw a 12% revenue decline due to the timing of new market activities, particularly in Europe.
- The company is experiencing delays in customer investment decisions in the US due to tariff uncertainties.
- Gross margins in the Recycling division were weak due to an unfavorable product mix, impacting overall profitability.
- Tomra Systems ASA (TMRAF) faces risks in its Food business linked to macroeconomic conditions and potential tariff impacts.
Q & A Highlights
Q: Are you able to meet your revenue expectations for Recycling this year given the decline in order backlog and conversion ratio?
A: Tove Andersen, CEO: Year-to-date, we have had revenues in Recycling of over EUR100 million. We have indicated a 40% conversion ratio of the order backlog for the coming quarter. However, the market is uncertain due to macroeconomic conditions and tariffs, which will affect 2025 revenues.
Q: With strong margin development in Food, are the full-year targets too conservative?
A: Tove Andersen, CEO: The profitability in Food is strong due to volume, product mix, and business mix. Despite improvements from the cost reduction program, we still target an EBITA of 10% to 11% for the full year.
Q: Can you provide an update on the progress in Poland for Collection?
A: Tove Andersen, CEO: We have a strong team in Poland and have signed some contracts. The business model is leaning towards sales and service. We are confident in our competitive positioning due to our extensive experience and product offerings.
Q: What is the expected tariff impact on Food in Q3?
A: Eva Sagemo, CFO: Tariffs might impact margins going forward, depending on order backlog and terms. We are adjusting production capabilities to mitigate tariff impacts by producing in Europe what was previously made in China.
Q: How do you expect gross margins in Collection to develop through the year?
A: Eva Sagemo, CFO: Gross margins should stay above 40%, with variations depending on sales mix. We expect new market activity in Poland and Portugal to impact margins in the second half.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
