Tomra Systems (TOM) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue was €325M, down 2% year-over-year, with Collection and Recycling declining and Food achieving record growth, order intake, and backlog, supported by restructuring and improved sentiment.

• Macroeconomic and tariff uncertainties impacted Recycling and Food, while Collection faced lower revenues due to phasing of new deposit markets; Food saw strong global demand.

• High activity in Collection for upcoming deposit return systems in Poland and Portugal; existing markets grew 5% year-over-year in H1.

• Recycling segment was weak in plastics due to low prices and high costs, but metals recycling remained resilient.

• Special item in Food: €3.7M positive impact from cost savings and lease restructuring.

Financial highlights

• Group Q2 revenue was €325M, down 2% year-over-year; Collection down 12% to €169M, Recycling stable at €57M, Food up 15% to €94M.

• Gross margin stable at 44%; adjusted EBITA margin improved to 14–15% including special items.

• Food order intake €106M (+28% YoY), backlog €137M (+15% YoY); Recycling order intake down 37% YoY, backlog down 20%.

• Cash flow from operations was €17M in Q2, down from €34M last year.

• Return on capital employed at 18%.

Outlook and guidance

• Collection: Growth in existing markets expected at ~5% YoY; new market timing in Poland and Portugal critical for 2025 growth.

• Recycling: Short/mid-term performance uncertain due to weak plastics market, trade tensions, and macroeconomic factors; 40% order backlog conversion expected in Q3.

• Food: Revenue growth potential at mid-single digits for 2025; 55% order backlog conversion expected in Q3; EBITA margin target 10–11% for 2025.

• Horizon (ventures): OpEx run rate for feedstock/reuse south of €20M in 2025; CapEx ~€40M, mainly for feedstock plants.