Good morning, ladies and gentlemen, and welcome to TOMRA's first quarter result presentation for 2026. My name is Daniel Sundahl. I'm Head of Investor Relations in TOMRA. We will, as usual, start today's presentation with CEO Tove Andersen giving you the highlights of the quarter, followed by a deep dive into the numbers from CFO Eva Sagemo. At the end of presentation, we will take questions from participants in the Teams webinar. A link to the webinar can be found in this morning's stock exchange release. Without further ado, I give the word to Tove Andersen.
Good morning and welcome from me as well to our Q1 2026 presentation. We present today a quarter characterized by strong growth in Food and Collection, but with profitability impacted by short-term product mix effects in all segments and lower volumes in Recycling. However, the underlying developments in the quarter in all segments gives us confidence going forward that we are on the right track. Collection delivered record revenues due to deliveries in Poland and Portugal and growth in existing markets. However, with lower margins due to the higher share of RVM sales and the product margins in Poland. In Recycling, we continue to see low commercial activity, but progressing according to plan on the cost reduction program. In Food, the high commercial activity is continuing, however, with short-term lower margins due to a larger-than-normal share of third-party peripheral equipment delivered.
Let me take you through the business updates for the divisions and horizon. Collection had a record quarterly revenues of EUR 208 million, up 15% currency adjusted. Revenue in existing markets was EUR 159 million in the quarter, which represents 5% growth in line with our ambition. However, when comparing the revenue from existing markets with Q4 last year, it's important to remember the seasonal variations in our throughput volumes. New markets contributed with EUR 49 million of revenues in the quarter. In Poland, which was the biggest contributor, installation speed has picked up, and deliveries will continue in Q2. By end of Q1, we had more than 4,000 machines installed.
As communicated earlier, the initial market in Poland is estimated to be 10,000-12,000 machines, with a tail which is difficult to estimate but can be 5,000 machines or more coming over the next years as Collection rates increase. Portugal launched its deposit system on April 10th. It is always exciting when a new country goes live. The initial market is estimated to be 2,500 machines, and we estimate that two-thirds of that market is done. By end of Q1, we had more than 1,000 machines installed in Portugal. We also had Singapore going live in April 1st, where we have been awarded one of the three zones representing roughly 350 RVMs. It is a small market, but an important reference for rest of Asia, and we are committed to make it a success.
We have a great team in Singapore, and you can see some of them in the picture below, together with the Senior Minister of State from the Ministry of Sustainability and the Environment and the Ministry of Education. When talking about new DRS markets, let's look at the pipeline, which we have listed on the bottom right. I will only comment on U.K., which is the next big market to go live. The process towards the launch in October next year is progressing as planned. We estimate the initial rollout to be 25,000 locations. Also in U.K., there might be a tail of sales into smaller independent stores, but difficult to estimate how large that market will be as they don't have an obligation to take back beverage containers. There is significant commercial activity ongoing in the U.K.
All of the large retailers are running or are about to run procurement processes for RVMs. We expect most contracts to be signed this year, while the rollout will mainly take place as of next year. Based upon the experience from the last DRS rollouts, where we have achieved a share of the market in line with our ambitions, we feel we are well-positioned to win our share of the U.K. market. To the last bullet on the slide, innovation. Innovation is key for us to ensure growth and to maintain our margins. In the quarter, we launched T100, the new version of our flagship model, T9. T9 is by far our most sold machine, it's actually the world's most common RVM. This is a big milestone.
I'm confident that the T100 will be as successful in the future as the T9 has been for us in the past. Over to Recycling. In Recycling, we had a significant drop in revenues in the quarter due to the weak market sentiment, which caused a decline in orders last year. Due to the lead times, this impacts the revenues in this quarter. As you will see from the bottom left graph, the order intake is also down compared to Q1 2025, but in line with second and third quarter last year. The market sentiment is stable, and it is as we have described in the previous quarters. We have a weak market in North America waste recovery and within plastic recycling due to tariffs, low plastic prices, and general macroeconomic uncertainty. The metal market has remained stable.
As you will see from the PET graph below, the PET prices that had a sharp increase the last weeks due to the increased oil prices and blockage of Hormuz. The increase in virgin PET prices has also lifted the prices of recycled PET, but not to the same extent. This is positive for our customers, but the impact on investment sentiment will depend on whether high prices are perceived as sustainable. They need predictability of higher prices over time before the investment sentiment will improve. Key for us, given the challenging market, is to take action on the things we can control. The EUR 16 million cost reduction program is progressing according to plan, and there will be a gradual effect on our costs during this year, and the full year effect will come next year.
In Food, we had revenue growth in all main markets, resulting in a revenue of EUR 79 million, up 17% currency adjusted. We saw some decline of revenue from the potato segment, which has been our largest category. This was expected, and we have talked about this in previous quarters as well, as we are coming out of a strong investment cycle on potatoes. What is nice to see is that we are able to compensate this decline with growth in other segments, in other categories. Citrus has been particularly strong in the quarter and is now competing with potatoes on being our largest category. This confirms the robustness in our business model and the value of having a diversified portfolio in Food. Order intake in the quarter was down on a strong comparison last year.
There will always be quarterly variations in order intake, and if you look at the trailing 12 months, the order intake is up 7%. The market sentiment overall is good and the underlying activity is strong. Innovation is also key in Food, and it's nice to see the 4C, which we launched some months back, has been well received in the market for nuts. This was one of the key segments the 4C was developed for. The positive response has confirmed our position as a challenger, well- equipped to increase our share of that segment. This is part of our strategy in Food to outgrow the market by gaining share in selected segments. To Horizon, our portfolio of new businesses, consisting today of c-trace, Reuse and Feedstock. After a period of investing into this portfolio, it's nice to see that the revenues are starting to build up.
The TOMRA Horizon portfolio delivered revenues of EUR 10 million in the quarter. Looking at the graph, the decline from Q4 is due to the seasonality in c-trace, which typically has a significant portion of the revenue in the last quarter in the year. The business momentum in the market c-trace operates in, that is the smart waste management segment, is strong, and we expect the company to continue their profitable growth journey this year. TOMRA Reuse is the least mature in our portfolio. For City Solution, the rollout in Lisbon is continuing, while the TOMRA Event Solution is still in piloting phase, but with a good pipeline of opportunities. In Feedstock, the focus is to ramp up the volumes at our Områ plant. We increased the two shifts early this year and target to be at two-thirds capacity utilization by the end of the year.
Overall, continued good progress in all three businesses. That concludes the business update, and I will hand over to our CFO, Eva Sagemo.
Thank you for that, Tove, and let's dig into the figures, starting with Collection. Revenues came in at EUR 208 million, up 12% compared to Q1 last year, and up 15% currency adjusted. The performance has been strong in the new markets, with revenues of EUR 49 million, with strong contribution from Poland and Portugal. Our existing markets continue with solid performance, with underlying growth of 5%, 2% up currency adjusted. Looking at the overview per region, North America is seasonally lower in the first quarter on the throughput sales, but also in the quarter, we have added in CLYNK compared to Q1 last year. Our gross margins in Collection ended at 39.5%.
It's lower than our ambition of being more than 40%, however, explained by the business mix with higher share of RVM sales, of the total sales, and then as well as the lower product margin in Poland also impacting the gross margin for Collection. OpEx ended up compared to Q1 last year, now at EUR 50 million in the quarter, explained by the high activity, especially in Poland, but also ramping up in the U.K. We have added CLYNK, and then we have also inflation in the period. This results then in an EBITDA in Collection of EUR 33 million, and it's up from EUR 30 million compared to the same period last year. Looking into the short-term outlook in 2026 and starting then with the revenues.
For existing markets, we expect mid-single-digit growth here according to or in line with our ambition for the existing markets. For new markets, the momentum in Poland continues strong next quarter, but the pace then in Portugal and Romania is then expected to slow down but continue to contribute throughout the year. For U.K., there is currently high commercial activity, as Tove mentioned, and the deliveries to the U.K. retailers will start then in 2027. For our profitability, our target is still to deliver a gross margin above 40% for the full year in 2026. Over to Recycling.
Recycling came in at EUR 37 million, a decline of 19% compared to Q1 last year, following then a decline in orders in 2025. The combination of low revenue volumes, metal projects, and also our fixed cost base results then in a weak gross margin of 40.5% in the quarter. OpEx ended down compared to Q1 last year, now at EUR 20 million. We have also added in restructuring costs of EUR 13 million as a special item in the quarter. This results then in a negative EBITDA in the Recycling of -EUR 5 million, excluding those special items. Looking at the order intake in the quarter, it ended at EUR 41 million, low, impacted by the challenging market sentiment. The level is, however, in line with what we had in 2025, especially for Q2 and also Q3, but down compared to our strong Q1 last year.
Order backlog ended at EUR 98 million. Also here looking into 2026, the short-term outlook, we estimate a 50% conversion ratio of the Q1 order backlog as revenue in Q2. Based on the current market sentiment, we do not expect the revenue growth this year. The majority of the order backlog that we have currently is estimated to be delivered in 2026. Given the current average lead time we have in production, we expect improved revenue visibility when we end Q2. Gross margins will continue to be impacted by the low volumes. We expect already in Q2, a more favorable product mix in Recycling. As Tove mentioned, the restructuring program is progressing according to plan, where we expect the EUR 16 million gross savings to materialize gradually throughout the following quarters with full effect in 2027. Moving over to Food.
Food revenues came in at EUR 79 million, which is up 13% compared to Q1 last year and up 17% currency adjusted. Performance was up in all main markets and also EUR 4 million better than estimated conversion ratio, mainly due to timing of deliveries. Gross margins for the quarter came in at 40.8%, which is down below last year's strong performance. This temporary decrease was mainly due to the product mix, with a higher proportion of third-party equipment sales linked to the large pack house projects that we had coming in as orders last year. OpEx ended up compared to Q1 last year, so slightly up, ending now at EUR 28 million, and that is mainly due to inflation. This results then in an EBITDA of EUR 4 million, up from EUR 3 million in the same quarter last year.
Also, here looking at the order intake in the quarter, it ended at EUR 80 million, a decrease from same period last year, however, this on strong comparables. The underlying market activity is strong, and the trailing 12-month order intake is up 7%. The order backlog ended strongly at EUR 137 million. Looking into 2026 outlook, we estimate a 70% conversion ratio of the Q1 order backlog to revenues in Q2. For the full year, revenues is estimated to grow mid- to high single-digit. As we have seen in Q1, the product mix effect is expected to continue also in Q2, but then to return to mid-40s in the second half of the year. We have a look at Horizon. Revenues came in at EUR 10 million, more than doubling from Q1 last year.
We have a strong momentum in c-trace, but also here we see now the positive contribution from Områ being now in production. Gross margins in the quarter are 48.4%. It's lower compared to Q1 last year, explained then by depreciations of our Områ assets. OpEx, flat compared to Q1 last year of EUR 6 million. That results in a negative EBITDA of EUR 2 million, however, then with a positive EBITDA for Områ. Then, looking into the short-term outlook also for Horizon, c-trace is expected to deliver double-digit revenue growth this year with an EBITDA of more than 20%. For Feedstock, as Områ is scaling up its production, which is then estimated to reach two-thirds of its full capacity this year, we expect a positive EBITDA contribution from the plant this year. Then going into 2027 with a positive EBITDA.
If you look at the whole Horizon activities, OpEx is expected to be around EUR 30 million-EUR 35 million for the full year, and then CapEx of around EUR 10 million for the full year. Combining the results from all of our divisions, the group achieved total revenues of EUR 334 million in the quarter. It's a 9% increase compared to Q1 last year, and 12% increase if you adjust for currency. The gross margin was 40.2% in the quarter. It's down compared to the same quarter last year, explained then by product, project, and business mix, where some of those are short-term in nature. OpEx ending at EUR 108 million in the quarter. It's up compared to same period last year, but that is mainly explained by then higher activity levels in new markets we have added in CLYNK, but also had inflation in the period.
This results then in EBITDA of EUR 26 million for the group, in line with what we had in Q1 last year, adjusting then for those special one-offs. Cash flow and capital. Cash flow from operations of EUR 60 million in the quarter. It's down from EUR 65 million in the same quarter last year, on then lower results and a higher working capital. Looking at cash flow from investments in the quarter, it's EUR 25 million, trending in line with the estimated run rate for the full year, which we have communicated to be around EUR 100 million, where most of those investments will be then into our core business divisions. A working capital of 18% end of the quarter. It's up compared to same quarter last year, reflecting then the high activities in new DRS markets.
It's down compared to end of 2025, and we also expect that to come further down as orders are being delivered and payments being collected then, especially in Collection. Our ROCE ended at 15% end of the quarter. It's down compared to same quarter last year reflecting inorganic investments, but also the strategic business building that we're doing, and also the lower profitability in Recycling. Also here, looking ahead, we anticipate an improvement in returns as we then get the positive impact from the investments that we have done and we are also able to lift the profitability in Recycling. Financing. Our average debt maturity end of the quarter is 4.2 years, with a liquidity buffer of around EUR 100 million in undrawn facilities. Our equity ratio at the end of the quarter was 35%.
It's down compared to same quarter last year, but stable from end of 2025. We still have a good headroom in the equity. Our gearing at the end of the quarter was 2.37x , up from same quarter last year, and also up from end of 2025, which reflects recent debt-financed acquisitions. Looking ahead, equity ratio is expected to be impacted by the dividend payments, which is now planned for Q2 in May. However, we will still be covenants intact and also expect improvement in the following quarters of 2026. For the gearing, it's expected to be gradually reduced with the earnings and cash flow from operations, also in the following quarters. This slide brings the outlook together, both on the short-term outlook but also on TOMRA's long-term drivers.
I will not go through this since I just covered it on the previous slides, but just want to emphasize the strong long-term drivers for TOMRA being then decarbonization, regulation, modernization and automization, but also demographics and resource scarcity. With that, I will hand it back to you, Daniel.
Thank you, Eva, and thank you, Tove. We will now move over to the Q&A in Teams, and I see we have a few questions coming in already, and we will start with Morayo Adesina at Barclays. Please go ahead. Morayo?
Hello. Can you hear me okay?
There we go. We hear you. Yes. Thank you.
Sorry about that. Hi, team. Thanks for taking my question. Just a couple from me. Just wanted to understand a bit more about the lower products margins in Poland. Just wondering why the margins are lower in this market. Is it something specific to Poland? Yeah, just wondering what the moving parts are behind that. Then, just continuing on this product mix subject. Obviously, you've mentioned for Recycling, expecting it to be a bit better in Q2, and continuing for Food. Just wondering what the outlook is for Collection, if you're expecting those product mix effects to continue. Then, just a clarification question. The market estimates that you mentioned for some of the markets, are those for the total market or just for TOMRA's share? That's just on Collection.
On Recycling, I'm just wondering what underpins the confidence with the 50% conversion ratio in Q2, given that the near-term challenges have still continued. Would that be seasonal effects or something else?
Yeah, I can start. If we start on the margins in Poland, to approach this question, is that it's important to remember that all the different markets that we operate in Collection is different. In Poland, we have talked about that we have had quite some price pressure. Nevertheless, given that situation, we are confident that we are going to deliver a more than 40% gross margins in Collection for the full year. If you think about Q2 and the Poland impact, we are also going to deliver quite some machines into Poland in Q2. This will also impact the margins in Q2 for Collection. You had the question on the margins also in Recycling and in Food.
Of course, in Recycling, when you operate with lower volumes, you will have an impact on the margins, and the product mix has also an impact on that. With the visibility that we have in the order backlog, for example, we are going to deliver more waste orders into Q2 that will have a positive impact on the gross margins in Recycling. Of course, with the market sentiment and the lower intake and the lower volumes that we have been trending on, this impacts the gross margin. As we go along and we take out the savings and go into 2027, we will see positive effects, also here, because part of the savings is impacting the gross margin.
If I just take the visibility on the conversion ratio for Recycling of 50% into Q2, that is based on the orders that we have in the order backlog that we are working on delivering to our customers. We have quite some visibility into that. As we always say, some variations can happen. We have seen that, for example, as a positive thing, now in Food in the quarter where we have delivered a bit higher than the conversion ratio. That is really about the timing of the deliveries and nothing else than that. For Food on the product margins, we see a decline now in Q1. Q1 is always a bit lower because of seasonality and what kind of orders you are delivering into the market. We see a negative impact this quarter because of the third-party equipment.
For those following TOMRA, they would remember that last year we had quite some larger orders coming in early in the year, which were to those large pack houses that we have talked about. There also we are taking on the third-party equipment into our P&L, and that has an impact on the margin. Nevertheless, we're not going to say no to those orders because it's so important to deliver that to the customer according to what they need. I think that was covering my part, right?
Yeah.
You had a question on the market estimates linked to then the indications that we were giving on Poland and Portugal. We estimate the initial phase in Poland for the total market, not TOMRA's share, to be 10,000-12,000 machines. This is then typically the larger retail chains that will be early investing. After that, there are thousands, tens of thousands, smaller stores in Poland. How many of those that they will decide to have RVMs is very difficult to estimate, but that part could represent a market opportunity of at least 5,000 machines. Also, what we expect is, and what we have seen in many markets, is that also the larger retailers will potentially underestimate the capacity that they need for collecting beverage containers. Also, you will expect to see continued sales into those.
As we have communicated for Poland for quite some time, is that we expect our rollout here lasting at least 2-3 years. The initial phase that is really happening now is then representing a total market of approximately 10,000-12,000 machines. For Portugal, the indication is that now in the initial phase is 2,500 installations. This is even publicly communicated in Portugal. We'll see over time if that again is an underestimation of the market. There is also an opportunity for then additional sales there. Of course, this is always the initial phase, and getting a large share in that initial phase is so important because then you will get the opportunities of replacements. Some of these retailers are growing, they're changing stores all the time.
That will create opportunities for sales, and you are getting the service revenue that comes after.
Great. Thank you so much.
Thank you. The next question is coming from Elliott Jones at Danske Bank. Please go ahead, Elliott.
Good morning, guys. Thanks for taking my questions. Just on Collection first, I'm just trying to get an understanding of the, I know we talked about it a bit, but the margins and the selling prices. Just kind of given the developments, is it fair to assume that whenever we have Poland as the majority contributor in a quarter, will we likely have gross margins under 40%, or was there a more special mix within Poland this quarter that's kind of abnormal?
Yeah. No, thank you for that question, Elliott. When we have deliveries to Poland, we will have an impact on the margin, around one percentage point, what we have seen now in Q1. Of course, the business mix in Collection also plays a role here. When we are now seeing volumes on the throughput coming in later in the year, that will have a positive impact. This is then specifically when we talk about the product margin that's specifically related to Poland.
Got it. Just on that, just linked to selling prices in general, given this, is it fair to assume that your selling prices have dropped across the board? Just frankly, I think that's what the market could assume, or is that potentially not the case? I know you mentioned that you hope to have gross margins for the full year above 40%, so just want some clarity on that. That'd be helpful.
Yeah. Our target is that we should have a gross margin in Collection above 40%. Of course, as Eva said, there is quite some variations within our portfolio. We knew that there would be tough competition in the new markets. We knew that there would be price pressure. It is important for us to get a large share initially, at the same time as we want to maintain our margins. This is a balance that we are playing when we are then deciding our commercial tactics in the different markets. This doesn't mean that the overall price level is going down. This doesn't mean that we expect the gross margins overall to go down over time. We will see our quarterly variations. Also, typically, we have lower margins on RVM sales versus service.
When you also have higher shares of sales of equipment versus service, you will see lower margins in that quarter.
Really helpful. Thanks. Just last quarter, you highlighted an order book of EUR 100 million in Collection as of February. Can you provide any highlights as to how this has developed since then, or?
Yeah. When we talked about that EUR 100 million, that was firm orders that we were going to deliver into the year. Out of that, we will deliver more of what we have delivered in Q1, now going into Q2. I think that's answering your question, Elliott. Of course, we expect also orders to come in throughout the year, so not necessarily linked to that EUR 100 million that we talked about in Q1.
Got it. Sorry, two more questions. Just down the P&L for Collection. I know we talked about gross margins, but could you provide any kind of color in terms of OpEx development, just so we can get a link to EBITDA margins versus Q1, for example?
For Q1, first of all, we have added in CLYNK, that has an impact on the cost side. We have had inflation in the period, but also that we have had quite some high activity in Poland that also drives cost, and we are ramping up in U.K. with all the activities that are ongoing there. We had EUR 50 million OpEx in the quarter, and this is what we would assume would be the OpEx in Collection, more or less, in the following quarters as well for 2026.
Really helpful. Last question, just in Food, you mentioned the potato segment. Can you provide any kind of color as to how much the potato segment has been in terms of last 12 months' order intake for TOMRA? Has it been a meaningful portion or is it more diversified now?
Yeah. Okay.
Okay, very good.
It has definitely been a meaningful position, but also what we have worked on is really diversifying our portfolio so that we are not so dependent on some few categories. As I said now, citrus is more or less at the same level as the potato segment was in the past. We have worked very systematically now on really mapping the different categories that we are focusing on, mapping their investment cycles, so that also we can plan, how do we allocate our resources into the different cycles, also then linked with our innovation pipeline.
Perfect. Thanks a lot.
Thank you, Elliott. The next question is coming from Daniel Vårdal Haugland at ABG. Please go ahead, Daniel.
Yes. Thank you for taking my questions. I have a couple of questions. Just firstly, on Q1 in Collection. If we think about it in terms of ramping production in Collection now, I'm just observing that the Q1 revenues was basically flatish versus Q4. Can you comment a bit more on this? Because I think many had the impression that there would be a step up, given the Poland rollout. Is there something that has happened here, or is this just more machines in Poland going to be rolled out in Q2? That's the first question.
When we had the Q4 announcement, we talked about the weather situation in Poland. Quite some snow in the first month of the year, and it made it difficult to go in and do the installation, and also for our customers to prepare the sites. We have the backlog for Poland. We are delivering according to what we are able to deliver. We're progressing very well, and we will have a strong Q2 on the Poland deliveries as well. I would say it's according to what we would expect, given the challenges that we had on the weather situation in Poland in the first month of 2026.
Okay. Basically, it seems like it's more.
Just to say one thing, when you compare revenue in Q4 with revenue in Q1, you have to remember the seasonality in our throughput volume.
Yes. Okay, on U.K., is there anything you can tell on when you expect any kind of conclusions on tenders? We've already seen one of the competitors announce a couple of orders. Yeah, on that. Also, can you maybe confirm whether you will announce orders in U.K. when you get them, or is there any dynamics with framework agreements, et cetera, that will make you not announce orders even though you're getting them?
Yeah. It's very exciting in the U.K. currently, a lot of commercial activities, a lot of tender processes are ongoing. We expect most of those to be concluded this year and to be signed this year, while most of deliveries will happen next year. Then Eva can say a bit about our policy on announcing.
Yeah. When it comes to announcing on contracts, what we have done in the past and also we continue to do going forward, it's all about what is significant for TOMRA, and we have had that threshold of 1,500 machines, more or less. Of course, we are evaluating this case- by- case if it's of importance for the market to know about contracts being signed. That's also the way we will handle this also going forward for the U.K. market, assessment case by case. Think about the threshold and combination with importance for the market.
Can you confirm or disconfirm that you have any big type of framework agreements that will likely be drawn on versus other markets, et cetera?
Of course, we have frame agreements with different large retailers in Europe. In addition to that, typically, we will set up sub-agreements for the specific country.
If there's a big draw on a frame agreement, would that go in under the policy of 1,500 machines?
Yes.
Typically, yes.
Okay. Thank you. My last question is on Recycling. I see the orders are down again quite in Q1 versus Q2. You had a boost in Q4. Can you give a little bit more flavor on this? Is it such that the customers have been more on the fence, given the macro situation with the war, et cetera, towards the end of the quarter, or is there anything else in that number?
Yeah, I can say a bit general, and then you can add there if there's some more details. When you look at the order intake, there will be quarterly variations. We believe underlying because we also look at the whole pipeline. We have a visibility of all projects being discussed, evaluated to be invested on, and based on our total pipeline. Not only the orders that have gone into the order backlog, we would say that the market sentiment is stable. That decline that you see doesn't really represent the underlying market sentiment. Then you can have quarterly variations because you could have a, I don't know, a NOK 3 million-NOK 4 million order or two of those coming in one quarter versus the other, which will create some of those jumps.
Yeah. Nothing to add. It's more about the timing.
Yeah.
Okay. Thank you. That was all my questions.
Thank you, Daniel. The next question will come from Markus Heiberg at SEB. Please go ahead, Markus.
Thank you. I might have missed the first one, but how much of the backlog in Collection have you delivered in Q1 out of the NOK 100 million? And how much have you added to that backlog, the intake in Q1? That's the first one. And the second one is how do you assess your market share in Q1 compared with sort of your installations versus the market? Those are the two first questions, at least.
Yeah. I can do the orders, and then you can talk about market share, Tove. We communicated the EUR 100 million in Q4 going into 2026. As you see from the presentation, we have had revenues of EUR 49 million in new markets. We have delivered from that EUR 100 million into the Q1, but we will deliver more of that EUR 100 million into Q2. That's the status of the 100. We will probably not going in and communicate on what will be added to that 100. I think we will stop that here now and more communicate on the progress in the markets as the quarters develop. We will deliver more into Q2 from that 100.
On market share, as I said, we estimate this initial rollout to represent 10-12,000 machines. We have 4,000 machines installed by end of Q1, and the momentum in Poland will continue in Q2 in line with what we have done in Q1.
To follow up on that, do you expect still the first rollout to be done by Q2, or will it go into Q3, Q4?
It is sliding a bit. Eva talked about the snow, and that continued also into a bit early this year, and that's also, as Eva said, out of the 100, we have delivered less than half of that in the quarter. We see now things are pushing a bit out in time, but the majority will still be first half, and then we'll go into additional orders coming in. As I talked about, as Collection rates are ramping up, because when you launch a deposit, initially, there will be very few containers coming back to the retailers. As that volume is ramping up, the retailers will assess the capacity they have. There will come new orders and so forth. This initial phase will mainly be done by end of Q2.
Thank you. The final one for me is on other markets. The backlog that you communicated last quarter was related to three specific markets, but then you also mentioned that the other markets will sort of step down. That suggests to me at least that there are some revenues here from markets that was not in the backlog in the NOK 49 million in your market. How much of the NOK 49 million was related to the backlog, and how much was related to the other markets?
I think giving specifics on that, it's very sensitive for the different markets that we operate in. We have delivered less than half of that NOK 100 million into Q1, and then we'll deliver more in Q2.
Yeah. We had contributions, for example, from Romania.
Yes
In the quarter that is part of
Yeah
The 49.
Exactly.
Which is continuing delivering.
Yeah
Quite some time after their launch date.
Thank you.
Thank you. Markus. We have one coming in from Adela Dashian at Jefferies. Please go ahead, Adela.
Thank you, and good morning, all. Just two questions from me. First, on tariffs. There was a change to Section 232 earlier in April. Do you see this impacting your affected blended tariff rate at all?
Yeah. We don't necessarily see that will impact significantly on how we operate, Adela. Of course, we are trying as much as possible to push the potential impact to our customers on the additional cost. We will, of course, come back with details if it turns out to be significant for TOMRA.
Yeah. We don't have a significant tariff cost.
Yeah
In our P&L, but of course, it's still impacting the investment sentiment.
Yeah.
Okay, I see. Do you know what your effective tariff rate was prior to this change? Because if I'm remembering correctly, 50% tariff on just the metals content, and then there was an additional tariff on the remaining value. I would assume that your blended rate would have been lower than 50%.
Yeah, that's correct. I'm happy to come back to you with further details on that after the call, Adela.
Great. Thanks a lot. Also, did you specify what percentage of your revenues and Collection came from existing versus new markets in the quarter?
Yes, we did. Out of the EUR 208 million that we had in Collection, EUR 49 million came from the new markets and the rest from existing.
Great. That's all from me. Thank you.
Thank you.
Do we have another question from you, Morayo Adesina? I see your hand is raised, so please go ahead and ask it.
Hi. Yeah, sorry, just two follow-ups. Just on the Middle East conflict, I know obviously you mentioned the impact it's been having on plastic prices. I'm just wondering if there are any other impacts that you're seeing in terms of your business, or if it's not really relevant. Secondly, have you disclosed whether or not Poland is largely a throughput market versus sales and service in terms of the business model that's there?
Yeah. Poland is mainly a sales and service market. On the Middle East situation, of course, this is impacting all businesses. We have done an assessment of both the direct impact and potentially indirect impact, which will be caused by higher inflation, energy prices increases, et cetera, and put in place mitigating actions to ensure that we are covering that risk. But of course, the main impact for us is linked to the investment sentiment and what will this do to the underlying GDP growth throughout the different countries and the general investment sentiment, since both in Food and in Recycling, a large portion of our sales is into CapEx projects. Currently, we don't see any kind of large short-term impacts, but of course, depending on how this develops, there is significant risk now. It definitely is not helping to boost the recovery within Recycling.
Okay. That's helpful. Thank you.
With that, I believe we have reached the end of today's presentation. Thank you, everyone for tuning in. The next time we will be here is on the 17th of July with our Q2 results. Thank you very much, and have a nice day. Goodbye.