How Does Tomra Systems Company Work?

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How Does Tomra Systems Company Work?

TOMRA Systems ASA is a global leader in sensor-based solutions, driving the resource revolution and enabling a circular economy. They develop and sell advanced collection and sorting systems for recycling, mining, and food processing sectors.

How Does Tomra Systems Company Work?

With over 113,700 installations in more than 100 markets, TOMRA significantly impacts resource recovery and efficiency worldwide. Their commitment to sustainability is evident in their innovative technologies.

TOMRA's operations are centered around advanced sensor-based sorting technology. This technology allows for the precise identification and separation of materials based on their unique properties, such as material composition, shape, and size. For instance, their reverse vending machines, a key product, use sophisticated sensors to identify and sort beverage containers, facilitating high-quality recycling. This process is crucial for achieving a circular economy, where resources are reused and recycled effectively. The company's solutions are vital for industries aiming to improve efficiency and reduce waste, contributing to a more sustainable future. Understanding the Tomra Systems BCG Matrix can provide further insight into their product portfolio and market positioning.

What Are the Key Operations Driving Tomra Systems’s Success?

Tomra Systems ASA operates through three primary divisions, each focused on enhancing resource productivity with specialized sensor-based solutions. The company's core activities encompass manufacturing, advanced technology development, and maintaining a robust global network for sales, logistics, and customer support, defining how Tomra works.

Icon Collection Solutions

This division leads in reverse vending machines (RVMs) for beverage containers, with over 87,000 installations globally. These machines facilitate high recovery rates, often exceeding 90%, in deposit return systems, significantly boosting container circularity.

Icon Recycling & Mining

Here, advanced sensor-based sorting systems are provided for waste, metals, and ore. Technologies like XRT and NIR enable efficient material separation, reducing environmental impact and improving profitability for industrial clients.

Icon Food Solutions

This segment offers sorting and processing technology for the food industry, using AI to maximize yields and improve grading. Recent integration of fresh and processed food divisions aims for more comprehensive customer solutions.

Icon Technological Edge

Tomra's effectiveness is driven by its technological leadership, particularly in sensor-based sorting and the growing application of AI. This innovation translates into higher purity, efficiency, and sustainability for its diverse customer base.

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Tomra's Impact on Resource Productivity

Tomra Systems ASA plays a crucial role in the circular economy by enabling efficient material recovery and waste reduction across multiple industries. The company's commitment to innovation in sensor technology underpins its ability to deliver significant value.

  • Collection Solutions capture over 48 billion used beverage containers annually.
  • Recycling solutions achieve food-grade plastic purity levels higher than 95%.
  • The company's integrated approach enhances resource recovery and reduces environmental footprints.
  • Understanding Revenue Streams & Business Model of Tomra Systems provides further insight into its operations.

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How Does Tomra Systems Make Money?

Tomra Systems ASA generates revenue through the sale and servicing of its collection and sorting systems across its three main divisions: Collection, Recycling, and Food. In 2024, the company reported total revenues of EUR 1,348 million.

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Collection Segment Revenue

This segment primarily earns revenue from the sale, rental, and servicing of reverse vending machines and related data management systems. Recurring revenue from servicing contributes approximately 20% of this segment's total revenue.

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Recycling Division Revenue

Revenue is generated from the sale of sorting systems for waste and metal material streams. In Q4 2024, Recycling revenues increased by 37%, though Q1 2025 saw a slight decrease.

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Food Division Revenue

This segment's revenue streams come from the sale of sorting and processing technology for the food industries. It has shown significant growth, with a 16% increase in Q1 2025 revenues.

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AI-Powered Solutions

The company integrates AI-powered solutions like GAINnext and OBTAIN™ into its sorting systems. These enhance efficiency and accuracy, providing additional value to customers.

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Strategic Partnerships

New business areas and strategic partnerships are being explored to expand revenue sources. This includes joint ownership of a national plastic sorting facility.

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Circular Economy Focus

The company's operations and revenue strategies are increasingly focused on supporting the circular economy. This includes long-term recycling feedstock supply agreements.

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Monetization Strategies in Action

Understanding Tomra's business model and operations reveals a multi-faceted approach to revenue generation, deeply intertwined with its commitment to sustainability and resource efficiency. The company's ability to adapt and innovate in its core segments, while also exploring new ventures, positions it for continued growth within the circular economy.

  • The Collection segment's revenue is driven by sales, rentals, and servicing of reverse vending machines.
  • Recurring revenue from servicing constitutes a significant portion, around 20%, of the Collection segment's earnings.
  • The Recycling division's revenue is primarily from the sale of advanced sorting systems for various material streams.
  • The Food division is experiencing robust growth, fueled by demand for its sorting and processing technologies.
  • Integration of AI and advanced sensor technology represents a key monetization strategy, offering enhanced performance and value.
  • Strategic investments, such as in new sorting facilities, aim to broaden revenue streams and solidify market presence.

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Which Strategic Decisions Have Shaped Tomra Systems’s Business Model?

Tomra Systems ASA has marked significant growth and strategic evolution, demonstrating a consistent commitment to profitable expansion. The company's strategic focus on the circular economy, highlighted by the establishment of its Circular Economy Division in 2019, underpins its operational direction and market positioning.

Icon Key Milestones in Growth

Over the past decade, Tomra Systems has achieved an average annual revenue growth of 9% and dividend growth of 11%. Recent achievements include the launch of new deposit return systems (DRS) in Austria on January 1, 2025, and continued strong performance in Romania, which initiated its DRS in November 2023. Poland's upcoming DRS, planned for October 1, 2025, further boosts activity in the Collection segment.

Icon Technological Advancements

In 2024, Tomra introduced innovative technologies such as the TOMRA R2 multi-feed machine and the TOMRA B5 “Basic Line” reverse vending machine. The company also launched OBTAIN™ software for mining, utilizing Deep Learning for precise ore sorting, and GAINnext™ for separating food-grade plastics with over 95% purity.

Icon Navigating Operational Challenges

Despite macroeconomic uncertainties and tariff concerns impacting order intake in the Recycling division, Tomra has focused on efficiency. The Food division, in particular, delivered a record strong first-quarter EBITA in 2025, showcasing resilience and effective cost management strategies.

Icon Competitive Strengths

Tomra's competitive edge stems from its technological leadership in sensor-based sorting, integrating AI and deep learning for enhanced accuracy. The company holds a dominant market position, being approximately ten times larger than its closest competitors in reverse vending and twice as large in recycling equipment.

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Tomra's Enduring Competitive Advantages

With a 50-year history of operational excellence and a global presence spanning approximately 113,700 installations across over 100 markets, Tomra Systems has built a robust brand reputation. This extensive installed base also supports significant recurring revenue from services. The company continues to innovate, exploring new business models like the Rotake system for reusable packaging and strengthening its AI capabilities through strategic investments, such as a 25% stake in waste analysis start-up PolyPerception. Understanding Tomra's business model and operations reveals a company deeply integrated into the circular economy, with its Brief History of Tomra Systems highlighting its foundational role.

  • Technological leadership in sensor-based sorting with AI integration.
  • Dominant market share in reverse vending and recycling equipment.
  • Extensive global footprint and strong brand reputation.
  • Focus on efficiency improvements and strategic R&D investments.

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How Is Tomra Systems Positioning Itself for Continued Success?

Tomra Systems ASA maintains a commanding presence in its core sectors, particularly in reverse vending and sensor-based recycling equipment, where its scale significantly surpasses that of its competitors. With an extensive network of approximately 113,700 installations spanning over 100 countries, the company benefits from broad global reach and strong customer allegiance, underpinned by its established technologies and operational history.

Icon Industry Position

Tomra Systems ASA is a dominant force in the reverse vending and sensor-based recycling machine markets. Its extensive global footprint, with over 113,700 installations in more than 100 countries, highlights its leadership and customer trust. This strong market standing is built on proven technology and a history of operational excellence.

Icon Key Risks and Headwinds

Despite its strong market position, the company faces challenges such as macroeconomic uncertainty and tariffs, which impacted order intake in the Recycling division, seeing a 37% decrease in Q2 2025. Regulatory shifts, while often beneficial, can also introduce implementation complexities.

Icon Future Outlook and Growth Strategy

The company anticipates robust growth, particularly in its Food and Collection segments, projecting mid-single-digit revenue growth in Food and a 5% growth in existing Collection markets. Strategic investments in AI and deep learning are central to enhancing sorting capabilities across all divisions.

Icon Sustainability and Financial Targets

Tomra aims for accelerated annual revenue growth of 15% towards 2030, targeting an EBITA margin of 18% and a return on capital employed above 18%. The company is also committed to environmental goals, including reducing Scope 1 and 2 emissions by 55% and Scope 3 intensity by 62% by 2033.

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Tomra's Role in the Circular Economy

Tomra's focus on circular economy solutions positions it to address global resource challenges and capitalize on the increasing demand for sustainable practices. Understanding the Marketing Strategy of Tomra Systems provides further insight into how the company leverages its technological advancements and market position.

  • Leading market share in reverse vending and sensor-based recycling.
  • Extensive global installation base of over 113,700 units.
  • Strategic focus on AI and deep learning for enhanced sorting.
  • Commitment to ambitious sustainability targets for emissions reduction.

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