TOMRA’s Q2 2026: Poland Inflection, Recycling Turnaround, and a Mining Exit
Record collection revenues and the first recycling order-intake growth in over a year mask margin compression as TOMRA pivots its portfolio.
TOM.OL · Earnings Call · 2026-07-17
When TOMRA Systems reported second-quarter 2026 results on July 17, the numbers told a story of inflections: all-time high group revenues, a 40% jump in recycling orders — the first positive reading in over a year — and a strategic decision to explore the divestment of its mining subdivision. The headline was record installations in Poland, but beneath the surface, the margin trade-off and the shape of new-market rollouts are now clearer than ever.
Poland: The Engine of New-Market Growth
Chief Executive Tove Andersen opened the call by pointing to the scale of the moment: “record installations of RVMs in Poland contributed to all-time high revenues for TOMRA Group.” — Tove Andersen, CEO · 2026-07-17 Collection revenues rose 45% year-over-year to EUR 246 million, with Poland accounting for the largest chunk of new-market revenue. The deposit market there is nine months into its first phase, and TOMRA now holds a leading share — over 7,000 of roughly 13,000 installed RVMs. But this growth comes at a cost. Gross margin in Collection fell to 38.6%, down 3.2 percentage points, as CFO Eva Sagemo explained: “The margin came in somewhat below our expectations as Poland revenues were higher than anticipated, increasing the effect from new market mix.” — Eva Sagemo, CFO · 2026-07-17 The margin impact is largely a product-mix story — higher RVM equipment sales versus service and throughput revenues. Management acknowledges this is the peak, and expects the second half to show margins above 40% as Poland volumes normalize and service contracts kick in. The U.K. is the next big beat, with deliveries expected to start in Q4 2026 but the majority of installations in 2027. TOMRA has already signed agreements for roughly 3,900 RVMs, and the company is positioning to lead that market as well. The forward-looking guidance — Collection second-half revenues of EUR 400–440 million — is notable because TOMRA typically avoids new-market revenue guidance. That confidence reflects the visibility now available after six months of accumulated orders.Recycling’s First Positive Order Momentum in Over a Year
Recycling revenues were down 11% in the quarter, but the order intake was the star: EUR 58 million, up 40% year-over-year. Tove Andersen attributed this to AUTOSORT PULSE, the aluminum alloy sorting solution launched a year and a half ago: “It shows really how we can drive then growth in challenging markets through innovation.” — Tove Andersen, CEO · 2026-07-17 The division also reported its first order-intake growth in over a year, a sign that the trough may be behind. Yet the broader picture remains cautious — plastic and waste markets are stable but not recovering, and management is still rightsizing the cost base. Projected full-year savings of EUR 16 million are on track, and the production consolidation to Slovakia is complete.A Strategic Portfolio Reshuffle
The most surprising move was the announcement that TOMRA has initiated a process to divest its mining subdivision, which represents roughly 2% of group revenue (about EUR 30 million last year). Andersen explained:This is a sharp pivot from the company’s earlier stance of being a diversified resource-sorting player. Proceeds, if any, would first go to debt paydown, per Tove’s comment: “Short term, of course, our priority is to pay down debt as well.” — Tove Andersen, CEO · 2026-07-17 The move aligns with TOMRA’s return to core — Collection, Recycling, Food — and the scaling of Horizon ventures like TOMRA Reuse and the Områ plant, which turned EBITDA positive a quarter ahead of plan. Prior calls had hinted at Poland’s long rollout — Eva Sagemo noted in February that they expected “a more back-end loaded Poland effect for collection in 2025” — Eva Sagemo, CFO · 2025-02-14 — and the Q2 outcome confirms that. The company has also been transparent that new-market margins will fluctuate with product mix, as seen in the 3.2 pp drag this quarter. With the U.K. rollout ahead, investors should expect similar mix effects in 2027, but the structural tailwinds from EU regulation (90% collection by 2029) remain intact. All told, TOMRA is at an inflection: new-market scale is finally visible, recycling is turning, and the portfolio is being simplified. The market will watch whether margin discipline and service-revenue leverage can deliver the operating leverage that the order book promises.A strategic player in the mining industry might see more value in this business, as it can provide a different scale than us. We have therefore initiated a process to explore the option of divesting our mining subdivision.