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1. Company Snapshot

1.a. Company Description

Tomra Systems ASA provides sensor-based solutions for optimal resource productivity worldwide.It operates through three divisions: Collection, Recycling Mining, and Food.The Collection division engages in the development, production, sale, and service of reverse vending machines and related data management systems.


This segment is also involved in picking up, transporting, and processing empty beverage containers on behalf of beverage producers/fillers.The Recycling Mining division offers sorting systems for waste and metal material streams; and ore sorting systems for the mining industry.The Food Solutions division provides post-harvest grading and sorting solutions for fresh produce; and sorting and processing technology for the processed food industries.


The company was founded in 1972 and is headquartered in Asker, Norway.

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1.b. Last Insights on TOM

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1.c. Company Highlights

2. TOMRA Delivers Mixed Q2 Results Amidst Divisional Challenges

TOMRA reported a mixed Q2 2025 performance, with revenues declining 2% year-over-year to EUR 325 million, reflecting varied results across its divisions. While the Food segment delivered a standout quarter with a 15% revenue increase to EUR 94 million, the Collection and Recycling segments faced headwinds. The company maintained stable gross margins at 44% and reported an EBITA margin of 15%, including special items. Notably, the Food segment achieved a record EBITA margin of 18%, supported by a strong order backlog and improving market sentiment.

Publication Date: Jul -18

📋 Highlights
  • Revenue Overview: Total revenue was EUR 325 million, down 2% year-over-year.
  • Food Division: Food revenue reached a record EUR 94 million, up 15% driven by strong order backlog.
  • Recycling Order Intake: Recycling order intake dropped 37% to EUR 41 million due to challenging market conditions.
  • Cash Flow: Cash flow from operations was EUR 17 million, down from EUR 34 million in Q2 last year.
  • EBITA Margin: EBITA margin was 15%, including special items, with a stable gross margin of 44%.

Financial Performance and Valuation

The company's operating expenses were slightly down at EUR 100 million, and cash flow from operations decreased to EUR 17 million compared to EUR 34 million in the prior year. The equity ratio stood at 35%, with gearing at 1.8x, and return on capital employed remained above the long-term target of 18%. On the valuation front, TOMRA currently trades at a P/E ratio of 38.95 and an EV/EBITDA of 14.67, reflecting elevated expectations for future growth. The stock also offers a dividend yield of 1.51% and a free cash flow yield of 7.9%, providing some comfort to investors amidst macroeconomic uncertainty.

Divisional Performance

The Collection division saw revenues drop 12% to EUR 169 million due to lower activity in new markets, though gross margins improved to 42%. However, the Recycling segment struggled with a 37% decline in order intake to EUR 41 million, weighed down by a challenging plastic market and macroeconomic uncertainty. In contrast, the Food segment outperformed, with a 28% increase in order intake to EUR 106 million and a record-high order backlog of EUR 137 million. This strong performance underscores the segment's resilience and growth potential.

Outlook and Growth Prospects

Looking ahead, TOMRA's near-term outlook remains uncertain, particularly for the Collection and Recycling segments. The company expects Collection revenues to grow approximately 5% annually in existing markets, with gross margins remaining above 40%. In Recycling, regulatory tailwinds and demand for recycled materials could drive long-term growth, though short-term performance will depend on installation volumes and product mix. The Food segment is poised for continued growth, driven by automation trends and improving market sentiment, with revenue growth potential in the mid-single digits for 2025. Management also highlighted the importance of cost control and operational efficiency, particularly in new market investments.

3. NewsRoom

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Mechanical Recycling of Plastics Market Size | Companies Analysis 2025-2034

Nov -05

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Are Shares of Tomra Set for Rebound After Latest Earnings and EU Recycling Developments in 2025?

Sep -24

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Norway’s Tomra sales slip amid weak volumes in new Austria operations

Jul -17

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.29%)

6. Segments

Collection

Expected Growth: 12%

Tomra Systems ASA's 12% growth is driven by increasing demand for recycling and waste management solutions, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on innovation and R&D has led to the development of new products and services, further boosting revenue growth.

Food

Expected Growth: 10%

Tomra Systems ASA's 10% growth in Food segment is driven by increasing demand for food sorting and processing technology, rising adoption of automation in the food industry, and growing concerns over food safety and waste reduction. Additionally, expanding into new markets, particularly in Asia, and strategic partnerships are contributing to the segment's growth.

Recycling

Expected Growth: 11%

Tomra Systems ASA's 11% growth in recycling is driven by increasing demand for sustainable waste management, government regulations and incentives for recycling, growing adoption of circular economy practices, and advancements in sensor-based sorting technologies. Additionally, rising consumer awareness of environmental issues and the need for eco-friendly practices contribute to the segment's growth.

Group Functions

Expected Growth: 13%

Tomra Systems ASA's 13% growth in Group Functions is driven by increasing demand for sustainable recycling solutions, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on innovation, digitalization, and cost savings initiatives have contributed to its growth. Furthermore, the rising need for efficient waste management and the growing importance of environmental sustainability have also fueled the company's growth.

7. Detailed Products

Reverse Vending Machines

Tomra's Reverse Vending Machines are designed to collect and sort recyclable materials such as cans and bottles, providing a convenient and efficient way for consumers to recycle.

Food Sorting Machines

Tomra's Food Sorting Machines use advanced optical and sensor-based technology to sort and grade food products, ensuring high-quality and efficient processing.

Recycling Sorting Machines

Tomra's Recycling Sorting Machines use advanced sensor-based technology to sort and separate recyclable materials, maximizing recycling rates and minimizing waste.

Compaction and Baling Machines

Tomra's Compaction and Baling Machines are designed to compact and bale recyclable materials, reducing waste and increasing efficiency in recycling facilities.

Optical Sorting Machines

Tomra's Optical Sorting Machines use advanced optical technology to sort and separate materials based on their optical properties, ensuring high-accuracy sorting and grading.

8. Tomra Systems ASA's Porter Forces

Forces Ranking

Threat Of Substitutes

Tomra Systems ASA operates in a niche market with limited substitutes, but the increasing adoption of recycling technologies and waste management solutions poses a moderate threat of substitutes.

Bargaining Power Of Customers

Tomra Systems ASA's customers are primarily municipalities and waste management companies, which have limited bargaining power due to the company's dominant market position and high-quality products.

Bargaining Power Of Suppliers

Tomra Systems ASA relies on a diverse supplier base, but the company's dependence on a few key suppliers for critical components poses a moderate threat of supplier bargaining power.

Threat Of New Entrants

The high barriers to entry in the waste management and recycling industry, including significant capital expenditures and regulatory hurdles, pose a low threat of new entrants to Tomra Systems ASA.

Intensity Of Rivalry

The waste management and recycling industry is highly competitive, with several established players competing for market share, posing a high intensity of rivalry for Tomra Systems ASA.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 33.59%
Debt Cost 4.77%
Equity Weight 66.41%
Equity Cost 8.73%
WACC 7.40%
Leverage 50.59%

11. Quality Control: Tomra Systems ASA passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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FCC

A-Score: 4.9/10

Value: 5.9

Growth: 2.7

Quality: 3.5

Yield: 7.5

Momentum: 3.0

Volatility: 6.7

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Tomra Systems

A-Score: 4.0/10

Value: 4.2

Growth: 4.7

Quality: 6.2

Yield: 2.5

Momentum: 5.0

Volatility: 1.7

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Marel

A-Score: 3.9/10

Value: 3.2

Growth: 4.0

Quality: 2.2

Yield: 0.6

Momentum: 8.5

Volatility: 5.0

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Nordex

A-Score: 3.9/10

Value: 3.5

Growth: 5.1

Quality: 4.2

Yield: 0.0

Momentum: 9.0

Volatility: 1.7

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Alstom

A-Score: 3.8/10

Value: 4.8

Growth: 5.2

Quality: 3.3

Yield: 0.6

Momentum: 6.5

Volatility: 2.3

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Dätwyler

A-Score: 3.2/10

Value: 2.2

Growth: 3.1

Quality: 3.7

Yield: 3.1

Momentum: 3.0

Volatility: 4.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

136.9$

Current Price

136.9$

Potential

-0.00%

Expected Cash-Flows