Tariff Uncertainty Weighs on Tomra’s Recycling Equipment Market

Tomra’s Recycling Equipment Sales Hold, But Orders Decline Amid Tariff Fears

Tomra Systems ASA, a global leader in sensor-based recycling solutions, reported mixed results for Q2 2025. While revenues in the recycling equipment division matched the previous year, new orders dropped significantly. CEO Tove Andersen attributed this to ongoing macroeconomic pressures and growing tariff uncertainty that have made buyers cautious.

Although the U.S. was not specifically mentioned in Tomra’s report, concerns about shifting U.S.-EU tariffs loom large. Much of Tomra’s recycling machinery is manufactured in Germany. With U.S. President Donald Trump threatening tariffs of up to 30% on European goods, North American customers are hesitating to commit to large-scale equipment purchases.

The company’s overall revenue dipped 2% year on year, while its recycling and sorting division stayed flat. However, the reverse vending machine (RVM) business—also linked to the recycling sector—fell 12% compared to Q2 2024. Meanwhile, Tomra’s food sorting division grew 15%, highlighting a disparity across sectors.

Order Backlogs and Investment Delays Hit the Recycling Equipment Market

Tomra’s recycling equipment market shows signs of stress, especially in future orders. The company revealed that its backlog for recycling machinery is now 20% lower than a year ago. Andersen noted that “continued macroeconomic and tariff uncertainty is postponing customers’ investment decisions,” emphasizing the growing hesitancy in capital-intensive sectors like recycling.

Tomra’s RVM unit experienced momentary delays in sales despite robust activity, largely due to the phasing of new deposit return schemes in Poland and Portugal. This temporary lull underscores how policy shifts and regulatory timelines can affect equipment rollouts.

Despite these challenges, Tomra maintained earnings stability. Its EBITA for Q2 2025 stood at $51 million, consistent with the same period last year. This suggests operational resilience even amid demand-side disruptions and geopolitical friction.

SuperMetalPrice Commentary:

Tomra’s experience offers a clear snapshot of how trade policy uncertainty—especially around tariffs—directly impacts capital investment in the recycling equipment market. While core revenue remains stable, the sharp drop in future orders signals hesitancy among buyers. If threatened tariffs materialize, they could significantly distort pricing, competitiveness, and supply chain predictability in the EU-U.S. recycling tech corridor. Stakeholders should prepare for prolonged volatility in 2025 and monitor policy announcements closely. Adaptation and local sourcing strategies may become critical for OEMs and recycling firms alike.