Mixed Segment Performance and Market Sentiment Lead to Hold Rating for Tomra Systems ASA

Jefferies analyst Adela Dashian maintained a Hold rating on Tomra Systems ASA (0KV7 – Research Report) today and set a price target of NOK160.00.

Adela Dashian’s rating is based on Tomra Systems ASA’s recent financial performance, which showed weaker-than-expected results in the first quarter of 2025. The company’s net sales increased by 5% year-over-year to EUR 306 million, but this was still 2% below the consensus expectations. The adjusted EBITA margin was 8%, which, despite being an improvement from the previous year, was still 21% below what analysts had anticipated.
The Collection segment saw a decline in sales by 2% year-over-year, largely due to lower volumes in new markets, and a significant drop in sales in Europe excluding Northern regions. In the Recycling segment, a less favorable product mix led to a decrease in gross margin, and the EBITA margin fell to -1%. On a positive note, the Food segment showed strong sales growth and improved margins due to restructuring efforts. However, the overall mixed performance across segments and the soft market sentiment in European plastics recycling influenced the Hold rating.