TORM (TRMD) Q1 2025 earnings summary

Executive summary

• Solid Q1 2025 performance delivered amid ongoing geopolitical uncertainty, with results aligned with expectations and Q4 2024 levels.

• Freight rates stabilized quarter-over-quarter but remain significantly lower year-over-year, leading to declines in revenue, EBITDA, and net profit compared to Q1 2024.

• Product tanker ton-miles rebounded in March 2025 after a sharp drop due to Red Sea disruptions.

• Fleet size decreased to 91 vessels following the sale of three older MR vessels, supporting fleet modernization.

Financial highlights

• Q1 2025 revenue was USD 329.1m, down 26% from USD 444.1m in Q1 2024; TCE earnings were USD 214.0m (Q1 2024: USD 330.7m); adjusted EBITDA was USD 137.7m (Q1 2024: USD 267.2m).

• Net profit was USD 62.9m, a 70% decrease from USD 209.2m in Q1 2024, and down from USD 77m sequentially.

• Basic EPS was USD 0.64 (Q1 2024: USD 2.34), compared to USD 0.77 in Q4 2024.

• Dividend per share was USD 0.40, with a payout ratio of 62%.

• Gross margin fell to 46.3% from 62.0% year-over-year.

Outlook and guidance

• Full-year 2025 TCE earnings expected between USD 700–900m (previously USD 650–950m; 2024: USD 1,135m); EBITDA guidance set at USD 400–600m (previously USD 350–650m; 2024: USD 851m).

• 57% of Q2 2025 coverage at USD/day 28,026 and 43% of FY 2025 at USD/day 27,829; remaining days exposed to market volatility.

• Key risks include geopolitical conflicts, global economic growth, oil price developments, and fleet growth.