Tomra is powering the circular-economy buildout—yet Q1 2026 shows the critical challenge is converting hardware-led growth into durable, high-margin recurring services.
Overview
Tomra entered 2026 with powerful structural tailwinds from the circular-economy transition, but Q1 2026 revealed a pronounced growth–profitability tension. Group revenue rose to €334m (+9% YoY; +12% constant currency), led by strong Collection and Food performance, yet adjusted EBITA stayed flat at €26m and margin slipped to 7.7% as mix shifted toward lower-margin hardware rollouts and Food peripherals, while Recycling volumes fell sharply and produced an operating loss. The company launched and scaled major DRS deployments (notably Poland and Portugal) and achieved a strategic milestone with Singapore’s DRS start, reinforcing long-term visibility. However, leverage has risen (net debt/EBITDA 2.37x) and the share price fell ~24% on the earnings miss, putting execution of the servitization roadmap—converting installed base growth into recurring, higher-margin revenue—at the center of the investment debate.