Tomra hits highest since April as Q2 earnings beat, Collection growth lifts shares

Tomra hits highest since April as Q2 earnings beat, Collection growth lifts shares

US stock futures slide further with tech set for more losses; Netflix disappoints Investing.com-- Tomra Systems (OL:TOM) shares jumped nearly 15% on Friday after the Norwegian recycling and sorting technology company reported stronger second-quarter earnings, fueled by robust demand for its reverse vending machine business and maintained its full-year outlook despite ongoing trade uncertainty. The Oslo-listed shares rose 14.7% to NOK 113.10, touching their highest level since April 23 comfortably outperforming the OSE Benchmark, which traded 0.2% higher. Revenue for the April-June quarter rose 25% year-on-year to 405 million euros ($463.3 million), while adjusted EBITA increased 30% to 57 million euros.

Adjusted earnings per share rose to 0.10 euro from 0.08 euro a year earlier, although the gross margin narrowed to 41.3% from 44.3% due to an unfavorable product and business mix. The results were driven by Tomra’s Collection division, where revenue surged 45% as new deposit return systems in Poland, Portugal, Singapore and Romania boosted equipment deliveries. The company continues to benefit from expanding bottle-return legislation globally, while a recently announced contract to supply around 1,200 reverse vending machines to a major UK retailer ahead of the country’s 2027 deposit return scheme underscores the long-term growth opportunity in the business.

Barclays estimates the UK rollout could ultimately represent a market for around 17,000 machines for Tomra. Growth was led by the Collection division, where revenue surged 45% as new deposit return systems in Poland, Portugal, Singapore and Romania boosted equipment deliveries. Food revenue rose 5%, while Recycling revenue declined 11%, reflecting weaker demand in Asia.

The company said it expects Collection revenue of 400-440 million euros in the second half of 2026, compared with 454 million euros in the first half. It forecast full-year Recycling revenue of 200-215 million euros and Food revenue of 340-360 million euros. TOMRA said current market uncertainty, trade tensions and tariffs could delay customer investment decisions.

About 15% of group revenue comes from the United States, with more than 90% of those U.S. sales supplied from Europe, potentially exposing them to tariffs. The company’s London-listed shares (LON:0KV7), however, were down about 10% in afternoon trade. Roushni Nair contributed to this article.