Tomra Systems (TOM) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue rose 12% year-over-year to EUR 398 million, with strong growth in Recycling (+37%) and Food (+13%), and record EBITDA and EBITA performance.

• Adjusted EBITA increased to EUR 78 million, up 46% year-over-year, with gross margin improving to 46%.

• Board proposes a dividend of NOK 2.15 per share, a 10% increase, representing a 58% payout ratio.

• Acquisition of c-trace, a digital waste management provider, completed and integration progressing.

• Significant progress in policy and regulatory developments in circularity, positioning for future growth.

Financial highlights

• Q4 2024 revenue reached EUR 398 million, up 12% year-over-year; full-year revenue at EUR 1,348 million, up 5%.

• Q4 EBITDA was EUR 78 million, up 46% year-over-year; full-year adjusted EBITDA at EUR 181 million, with a 13.4% margin.

• Gross margin in Q4 was 46%, up from 44% last year; full-year gross margin up 0.8 percentage points.

• Cash flow from operations in Q4 was EUR 83 million; full-year cash flow from operations at EUR 235 million.

• Return on capital employed improved to 23% year-over-year; equity ratio at 38%, gearing at 1.6.

Outlook and guidance

• Collection expects continued high activity in 2025, with 5% growth in existing markets and significant new market rollouts, especially in Poland.

• Recycling anticipates mid-single-digit growth in 2025, with stable margins and no assumed recovery in plastics; 45% of backlog expected to convert to Q1 2025 revenue.

• Food projects low single-digit growth in 2025, with gross margins in the mid-40s and profitability in line with 2024 run rate; 65% of backlog expected to convert in Q1 2025.

• Horizon business expects increased activity and costs as the Norwegian feedstock plant ramps up, with positive EBITDA expected by year-end and EUR 40 million CapEx planned for 2025.