Stock Markets April 24, 2026 02:40 AM

Tomra Q1 Misses Forecasts as Recycling Weakness Drags Results

Group revenue rises but margin pressure and lower recycling installations leave adjusted EBITA well below expectations

By Sofia Navarro
Tomra Q1 Misses Forecasts as Recycling Weakness Drags Results

Tomra Systems reported first-quarter adjusted EBITA of EUR 26 million, about 35% below market forecasts, while group revenue reached EUR 334 million, up 9% year-over-year but roughly 2% under consensus. Strength in Collection and Food was offset by a 19% decline in Recycling revenue and a negative contribution from that division, with lower installation volumes and an unfavorable product mix cited as ongoing headwinds.

Key Points

  • Adjusted EBITA of EUR 26 million missed expectations by roughly 35%, while group revenue rose to EUR 334 million - impacts investor sentiment in industrial equipment and environmental services sectors.
  • Recycling division revenue fell 19% to EUR 37 million and recorded a EUR 5 million loss, showing sector-specific weakness and lower installation activity - significant for recycling equipment suppliers and operators.
  • Food and Collection divisions showed resilience: Collection revenue grew 12% to EUR 208 million and Food revenue rose 13% to EUR 79 million, supporting more stable cash flow in food-processing equipment and return-collection services.

Tomra Systems ASA reported first-quarter results that fell short of market expectations, with adjusted EBITA of EUR 26 million, about 35% below consensus. Group revenues were EUR 334 million, a 9% increase from the same period a year earlier but roughly 2% below analysts' estimates.

The company's divisional performance was mixed. The Collection division delivered EUR 208 million in revenue, up 12% year-over-year. By contrast, Recycling revenue slipped 19% to EUR 37 million. Food division revenue rose 13% to EUR 79 million, while Horizon revenue more than doubled to EUR 10 million.

On an adjusted EBITA basis, the company reported flat results versus the prior year: EUR 26 million, representing an 8% group margin. Recycling moved into loss territory, with a EUR 5 million loss and a negative 14% margin, compared to breakeven in the first quarter of 2025. Management cited continued pressure from low installation volumes and an unfavorable product mix as factors weighing on Recycling results, despite having implemented early cost reduction measures.

Collection delivered a stronger profitability profile, with EBITA rising 10% to EUR 33 million and a 16% margin. Food EBITA increased 33% to EUR 4 million, translating to a 6% margin. Gross income for the group totaled EUR 134 million, up 3% year-over-year, while gross margins contracted to 40% from 43% in the prior-year period.

Order trends showed notable divergence by division. The Recycling backlog declined 20% year-over-year, reflecting softer demand in that segment. By contrast, the Food backlog expanded by 10%, indicating more resilient demand for that business line.

Looking ahead to the second quarter, Tomra set out conversion ratio expectations for its divisions. Recycling is expected to convert at a 50% ratio, with an improved product mix relative to the first quarter. Food is forecast to convert at 70%, with a comparable share of lower-margin third-party equipment as observed in the first quarter.


Note: This article confines itself to the figures and guidance provided by the company and does not introduce additional forecasts or external data.

Risks

  • Lower installation volumes and an unfavorable product mix continuing to pressure Recycling results, which may affect margins in the recycling equipment and services sector.
  • A 20% year-over-year decline in Recycling backlog signals demand softness and revenue visibility risk for the recycling business line.
  • Gross margin contraction from 43% to 40% points to margin compression across the group, raising uncertainty for near-term profitability in industrial equipment segments.

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