Tomra Systems (TOM) Q4 2025 earnings summary

Executive summary

• Q4 2025 delivered record revenues in Collection, strong profitability in Food, and a challenging market for Recycling, with group revenue at EUR 382 million, down 4% year-over-year.

• Collection segment saw robust growth in Continental Europe, driven by innovation and expansion in Poland and Portugal.

• Food segment achieved record profitability and margin improvement, supported by automation trends and new product launches.

• Recycling faced a weak year due to challenging market sentiment, especially in plastics, with cost reduction initiatives underway.

• Cash flow from operations declined to EUR 24 million in Q4, mainly due to working capital buildup.

Financial highlights

• Q4 2025 group revenue was EUR 382 million, down 4% year-over-year; full-year revenue was EUR 1,318 million, down 2%.

• Adjusted Q4 EBITDA/EBITA was EUR 71 million with a 19% margin; gross margin held at 46%.

• Collection revenue grew 2% to EUR 207 million; Recycling declined 27% to EUR 75 million; Food down 3% to EUR 88 million.

• Food segment achieved a record EBITDA/EBITA margin of 13–18% for the year, exceeding targets.

• ROCE ended at 15.2% for 2025; equity ratio at 35%; gearing at 2.3.

Outlook and guidance

• Collection expects mid-single digit annual growth in existing markets and EUR 100 million revenue from new markets in 2026.

• Recycling market challenges to persist through 2026, with cost savings of EUR 16 million targeted for full effect in 2027.

• Food revenue growth projected at mid- to high single digits for 2026, with gross margin expected in the mid-forties.

• CapEx for 2026 estimated at EUR 100 million, focused on core divisions.

• Horizon ventures to maintain OpEx in line with 2025, with Feedstock aiming for positive EBITDA in 2026.