Tomra Systems ASA Reports a Muted Third‑Quarter 2025
Tomra Systems ASA, the Norwegian technology leader in sensor‑based solutions for resource productivity, announced its financial results for the third quarter ended 30 September 2025 on 17 October 2025. The company’s performance fell short of consensus estimates, largely reflecting a softening market in recycling and the gradual phasing of new collection markets.
Key Financial Highlights
| Metric | Result | Consensus / Previous | Commentary |
|---|---|---|---|
| Revenue | EUR 306 million | 326 million | A decline of 6.1 % versus the prior quarter, driven by weaker demand in recycling‑related services. |
| Non‑GAAP EPS | EUR 0.05 | 0.065 EUR | EPS fell below analysts’ average of 0.065 EUR, signalling compression in profitability. |
| EBITA | EUR 30 million | 38.3 million (est.) | EBITA was 22 % lower than consensus expectations, underscoring pressure on operating margins. |
| Close price (2025‑10‑15) | 136.1 NOK | – | The share price sits below the 52‑week low of 128.7 NOK, indicating a market correction. |
The company’s market capitalization stands at 42.35 billion NOK and the price‑earnings ratio is 36.06, reflecting investors’ valuation expectations in a period of subdued earnings growth.
Drivers of the “Muted” Performance
Recycling Market Softening – Tomra’s core recycling solutions have seen reduced uptake, with customers delaying upgrades and new deployments. This trend has translated into lower revenue and operating profit.
Phasing of New Collection Markets – The company is gradually winding down its expansion into newer collection segments. While this strategy may benefit long‑term efficiency, it has led to a temporary dip in top‑line growth.
Tariff and Supply‑Chain Challenges – Commentary from CEO Tove Andersen highlighted ongoing tariff uncertainties that have impacted the cost structure of certain components.
Strategic Moves Amidst the Downturn
Despite the earnings dip, Tomra secured a significant order that may provide a boost to its sales pipeline:
- 3,000 Return‑Voucher Machines (RVMs) for Polish Retailer Dino Polska – The order, announced on 16 October 2025, will see the delivery of RVMs across Poland. Installation is slated to begin within weeks and continue through the first half of 2026, offering a steady revenue stream in the coming months.
This contract illustrates the company’s ability to generate sizable orders even as overall market demand moderates.
Analyst Sentiment and Market Outlook
Financial analysts remain cautiously optimistic:
Pareto reiterated a “Buy” recommendation and maintained a target price of 214 NOK, noting that the 15 % decline from the third‑quarter peak reflects the broader recycling slowdown and a brief delay in the Polish DRS deployment.
Consensus EPS estimates for the next quarter range between 0.06 EUR and 0.07 USD per share, suggesting that profitability may stabilise as the market recovers.
The company’s leadership emphasised that the current quarter is “muted” but not a sign of long‑term weakness. Tomra’s continued focus on technology innovation and efficient resource‑productivity solutions positions it to capture market share once recycling activity rebounds.
Conclusion
Tomra Systems ASA’s third‑quarter 2025 results underline the challenges facing the global recycling and collection sectors. While revenue, earnings, and EBITA fell short of expectations, strategic orders such as the RVM deployment in Poland and a measured approach to market expansion provide a foundation for recovery. Investors will likely monitor the company’s ability to translate these initiatives into sustained earnings growth as the recycling market stabilises.
