Tomra Systems ASA reported first-quarter results that fell short of market expectations, with adjusted EBITA of EUR 26 million, about 35% below consensus. Group revenues were EUR 334 million, a 9% increase from the same period a year earlier but roughly 2% below analysts' estimates.
The company's divisional performance was mixed. The Collection division delivered EUR 208 million in revenue, up 12% year-over-year. By contrast, Recycling revenue slipped 19% to EUR 37 million. Food division revenue rose 13% to EUR 79 million, while Horizon revenue more than doubled to EUR 10 million.
On an adjusted EBITA basis, the company reported flat results versus the prior year: EUR 26 million, representing an 8% group margin. Recycling moved into loss territory, with a EUR 5 million loss and a negative 14% margin, compared to breakeven in the first quarter of 2025. Management cited continued pressure from low installation volumes and an unfavorable product mix as factors weighing on Recycling results, despite having implemented early cost reduction measures.
Collection delivered a stronger profitability profile, with EBITA rising 10% to EUR 33 million and a 16% margin. Food EBITA increased 33% to EUR 4 million, translating to a 6% margin. Gross income for the group totaled EUR 134 million, up 3% year-over-year, while gross margins contracted to 40% from 43% in the prior-year period.
Order trends showed notable divergence by division. The Recycling backlog declined 20% year-over-year, reflecting softer demand in that segment. By contrast, the Food backlog expanded by 10%, indicating more resilient demand for that business line.
Looking ahead to the second quarter, Tomra set out conversion ratio expectations for its divisions. Recycling is expected to convert at a 50% ratio, with an improved product mix relative to the first quarter. Food is forecast to convert at 70%, with a comparable share of lower-margin third-party equipment as observed in the first quarter.
Note: This article confines itself to the figures and guidance provided by the company and does not introduce additional forecasts or external data.