Tomra Systems walked into Q3 2026 earnings with a bruised share chart and a NOK94.5 close that left many investors treating it as a broken growth story. The fresh numbers tell a different tale. Revenue for the quarter reached €366m and net income landed at €24m, helped by recycling profitability swinging higher on stronger orders and cost cuts. The stock has barely budged over the past month, yet the latest margin improvement in recycling puts the biggest pressure point in the Tomra Systems thesis under a harsher and more interesting light.
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Q3 2026 Earnings Summary
- Revenue (Q3 2026 vs Q3 2025): €366m vs €306m (+19.6%)
- Net Income (Q3 2026 vs Q3 2025): €24m vs €14m (+71.4%)
- Basic EPS (Q3 2026 vs Q3 2025): €0.08 vs €0.05 (+60.0%)
- Group Gross Margin (Q3 2026 vs Q3 2025): 43.0%, slightly lower than last year. Margins improved compared with Q2 2026 but softened year on year due to Collection mix.
Collection is booming, but Recycling just swung back to profit. Ask Charlie which Tomra Systems growth driver looks most durable.
Evaluating Tomra Systems’ Conversion Milestones
The bullish story hangs on Tomra Systems turning project wins into recurring, high margin income rather than just headline growth.
"The main thing that has to go right is that Tomra Systems converts its current wave of DRS rollouts, recycling projects and Food division interest into sustained order intake and recurring high margin service and software revenues."
Q3 gives partial evidence. Collection revenue of €217m with gross margin above 40% and ongoing Poland and early UK rollout activity shows the DRS engine working. Recycling delivered €54m of turnover and positive EBITDA as cost cuts and higher margin mix took hold. Food posted €86m of revenue and a solid margin, although order intake stayed flat. That leg of the thesis is progressing but not yet firing fully.
That disagreement has a full argument behind it. → Uncover the higher Fair Value this Narrative argues for.
Tomra Systems Margins: Progress, But Mix Headwinds Linger
Tomra Systems bears argue that even healthy order books will not fix margin pressure if too much business sits in lower margin categories.
"the higher weighting of lower margin hardware sales compared with higher margin service revenues risks keeping gross margin and EBITDA margin structurally below what many investors may be assuming from the expanding installed base."
This quarter cuts both ways. Collection still leans on hardware, with gross margin just above 40% and group gross margin slightly softer year on year. This supports the concern about mix. Recycling and Food both reported solid profitability, yet Food order intake was flat and last 12 month bookings fell, so the cleaner, service heavy earnings mix skeptics want is not firmly in place.
Find Quiet Disconnects Before Crowds
Tomra Systems recently reported results that highlighted a cleaner margin picture for investors. The real opportunity is carefully reviewing stocks that could be undervalued before wider market attention narrows the gap.
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