Tomra Systems (TOM) Q1 2026 earnings summary

Executive summary

• Group revenues reached EUR 334 million in Q1 2026, up 9% year-over-year (12% currency adjusted), driven by record Collection and strong Food growth, partially offset by a significant decline in Recycling revenues.

• Adjusted EBITA was EUR 26 million (7.7% margin), unchanged year-over-year, with margin pressure from product mix, inflation, and lower Recycling volumes.

• Significant investments continued in new markets and strategic business building, especially in Collection and Food.

• Special restructuring costs of EUR 13 million impacted reported EBITA and profitability in Recycling.

• Cash flow from operations was EUR 60 million, down from EUR 65 million last year, mainly due to higher working capital.

Financial highlights

• Gross margin was 40.2%, down from 42.6% last year due to product and business mix and lower Recycling volumes.

• EBITDA was EUR 26 million, flat year-over-year after adjusting for special items.

• Operating expenses (adjusted) increased to EUR 108 million, driven by inflation and ramp-up in new markets.

• Net profit for the period was -EUR 3 million, compared to EUR 10 million last year.

• Order intake in Recycling fell 33% to EUR 41 million; Food order intake was EUR 80 million, down 8% from a strong prior year.

Outlook and guidance

• Collection expects mid-single-digit growth in existing markets and continued strong momentum in Poland for Q2; Portugal and Romania to slow but still contribute.

• Collection gross margin target remains above 40% for 2026.

• Recycling revenue growth not expected in 2026; cost savings from restructuring to materialize gradually, with full effect in 2027.

• Food revenues projected to grow mid- to high single-digit for the full year; gross margin to return to mid-40s in H2.

• Horizon's c-trace expected to deliver double-digit revenue growth and >20% EBITDA margin in 2026.