Tomra warns recycling recovery unlikely until after 2026

Tomra Systems ASA

13/02/2026 14:24

By Vera Dvorakova

Feb 13 (Reuters) - Norway's Tomra TOM.OL expects the downturn in its recycling equipment business will persist through 2026, with CEO Tove Andersen citing the pace of deposit return scheme (DRS) rollouts in Europe and Asia as key to driving future growth.

"We don't expect the market to recover this year," Andersen told Reuters, adding that while demand has stabilised, it has not improved.

Tomra's recycling unit, which supplies sensor-based sorting systems to waste management companies, has been hit by weak sentiment in the European plastics market, resulting in postponed orders and lower activity during the quarter.

Tomra shares slid more than 8% to the bottom of the pan-European index .STOXX after reporting mixed fourth-quarter results on Friday.

Earlier this week, the company launched a cost-reduction programme of about 16 million euros ($19 million) in the division, including cutting about 175 jobs, to adapt to lower activity levels.

"We are certain that this market will come back," Andersen said, adding European legislation is expected to drive future investment in recycling infrastructure.

Tomra is entering a heavy rollout phase for deposit systems, with Poland, Portugal and Singapore among new markets expected to contribute to revenues this year.

However, the timing of installations remains dependent on political processes.

Spain's planned deposit system will be delayed beyond 2026 as authorities have yet to appoint a system operator, Andersen said.

"All of the EU countries need to collect 90% of their PET bottles and cans by 2029... so it's much more about when, instead of if they will do it," she added.

Andersen said Tomra has good near-term visibility backed by its order backlog, as retailers continue to invest in automated collection systems.

"Eighty-seven percent of our sales last year were in existing markets. This will grow by 5% per year and creates a strong foundation where the new markets will come on top," Andersen said.

($1 = 0.8430 euros)

 (Reporting by Vera Dvorakova, writing by Jesus Calero)

 ((jesus.calero@thomsonreuters.com))