TORM plc reported earnings for the fourth quarter of 2025, with earnings per share of $0.88, falling short of the consensus estimate of $0.94 by $0.06. The company’s total contract earnings (TCE) rose to $251 million from $215 million in Q4 2024, while net profit climbed to $87 million from $77 million year‑over‑year. The quarter’s improvement was driven by stronger freight rates and a favorable mix of vessel types, but the company’s full‑year 2025 results—TCE of $910 million and net profit of $286 million—were lower than the $1,135 million and $612 million reported in 2024, reflecting the impact of geopolitical uncertainty and a normalization of freight rates.
The segment breakdown shows that long‑range 2‑day (LR2) vessels earned more than $35,000 per day, long‑range 1‑day (LR1) vessels earned over $31,000 per day, and medium‑range (MR) vessels earned just under $29,000 per day. The mix shift toward higher‑earning LR2 and LR1 vessels helped lift quarterly earnings, but the overall decline in full‑year TCE indicates that the company’s exposure to lower‑margin MR activity and broader market softness weighed on the year‑end picture.
Management guided for 2026 with TCE earnings in the range of $850 million to $1,250 million and EBITDA between $500 million and $900 million. The guidance reflects confidence in a favorable market environment while acknowledging the need for continued cost discipline and operational efficiency. The company’s outlook signals that it expects to maintain profitability even as freight rates normalize.
"We ended 2025 on a very strong note, reaffirming the resilience of our business model and our ability to consistently execute," said CEO Jacob Meldgaard. "As we look to 2026, we see a favorable market environment, and TORM is well‑positioned to continue delivering value for our shareholders and to set the benchmark for our industry," he added.
Headwinds for the company include geopolitical uncertainty, Houthi attacks, and sanctions that have disrupted shipping routes and increased operational risk. Tailwinds include firm freight rates and a positive spillover from the crude tanker segment, which have helped support the improved Q4 performance. The company’s integrated commercial and technical management model is cited as a competitive advantage that will help it navigate the current market volatility.
The EPS miss indicates a slight shortfall in profitability relative to analyst expectations, but the Q4 improvement and strong guidance suggest that TORM’s core business remains resilient. Investors should note the decline in full‑year TCE and net profit, which points to a normalization of freight rates, while the company’s forward guidance signals confidence in its ability to sustain earnings growth in 2026.
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