Story
Tomra Q2 Revenue Climbs 25% on Strong Demand for Collection Systems
Summary
Tomra Systems reported a 25% year-on-year increase in second-quarter revenue, driven by a surge in its Collection division as new deposit return systems were implemented in several key markets.
Tomra Systems (OL:TOM) announced a significant increase in second-quarter revenue and earnings, fueled by robust performance in its Collection business. The company reported that the expansion of new deposit return systems in Europe and Asia was a primary driver for the growth.
Key Financials
For the April-June quarter, Tomra posted strong year-on-year growth, according to its latest earnings release. The key figures include:
- Revenue: Rose 25% to €405 million ($463.3 million).
- Adjusted EBITA: Increased 30% to €57 million.
- Adjusted Earnings Per Share (EPS): Climbed to €0.10 from €0.08 in the same period a year earlier.
Despite the strong top-line growth, the company's gross margin narrowed to 41.3% from 44.3% a year ago. Tomra attributed this contraction to an unfavorable product and business mix during the quarter.
Divisional Performance Breakdown
AdThe company's results showed a stark divergence between its business segments. The Collection division was the standout performer, with revenue surging 45% due to increased equipment deliveries for new deposit return systems in markets including Poland, Portugal, Singapore, and Romania.
In contrast, the Food division saw modest revenue growth of 5%. The Recycling division faced headwinds, with revenue declining by 11%, which the company linked to weaker demand in Asia.
Outlook and Potential Risks
Looking ahead, Tomra provided guidance for the remainder of 2026. The company expects Collection revenue of €400-€440 million in the second half, compared to €454 million in the first half. Full-year revenue forecasts were set at €200-€215 million for Recycling and €340-€360 million for Food.
Tomra also cautioned that market uncertainty, ongoing trade tensions, and potential tariffs could delay investment decisions from its customers. The company noted that approximately 15% of its group revenue is generated in the United States, with over 90% of those sales supplied from Europe, creating potential exposure to tariffs.
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