Tomra Systems ASA

Strong quarter: growth + cash flow, but profitability still a work in progress - Group revenue: EUR 366m in Q3 2026 (+20% YoY), driven by Collection, Recycling and Food. - Group EBITDA: EUR 47m (+55% YoY) showing strong operating leverage despite mix and higher opex. - Cash flow: Operating cash flow EUR 112m (up from EUR 64m YoY), and working capital improved to 16% of revenue (from 19% a year ago). - Caution/negative: Gross margin at 43% (down vs 44.1% in Q3 last year) due mainly to Collection mix; overall profitability not yet where it should be (management emphasis).

Collection (largest driver): record performance, margin pressure from mix, continued ramp for UK + Germany - Revenues: EUR 217m (+21% YoY), with growth led by Germany, North America, Australia; new markets contributed EUR 24m (mostly Poland, plus Singapore/Romania). - Gross margin: 40.8% (improved vs Q2, but -1.5pp vs Q3 last year) because of higher equipment/RVM sales share. - Operational development: - Germany upgrade/replacement cycle: TOMRA has ~30,000 installed base; ~half already meeting requirements. Deadline: May 2029 → expect revenue opportunities gradually through then. - UK deposit scheme: strong milestone—first installation in quarter; TOMRA expects Phase 1 ~25,000 RVMs (mostly large chains) with main deliveries 2027 and some spillover to 2028. - Near-term Collection outlook (forecast): - H2 revenue range narrowed to EUR 410m–430m - Gross margin expected above 40% in H2 and ~40% for full year - Operating expenses: around EUR 52m/quarter run-rate (plus ~EUR 1–2m currency effects)

Recycling: first clear earnings improvement, but dependent on project timing; Mining orders are “exceptional” - Revenues: EUR 54m (+34% YoY), slightly ahead of expected conversion. - Gross margin: 47.7% (+3.8pp YoY) aided by higher volumes + COGS savings. - EBITDA: EUR 6m (vs -EUR 3m in Q3 last year) → evidence cost actions are working. - Order intake & backlog (surprising but important): - Order intake EUR 73m (+73% YoY) including two exceptionally large Mining orders totaling ~EUR 26m. - Backlog: EUR 124m - Key negative/limitation: excluding Mining, underlying last-12-month order intake down ~6% YoY → demand still pressured. - Recycling outlook (forecast): - Full-year revenue EUR 205m–215m - ~55% of Q3 backlog expected to convert in Q4 - Q4 gross margin: 50%–54% - Q4 opex: ~EUR 19m - Cost reduction program: EUR 16m savings on track (about 2/3 in opex; full-year impact from 2027) - Mining treatment: management: Mining orders should be treated as one-offs; revenues expected late 2027 due to 9–12 month lead times.