TORM plc (TRMD) Earnings
TORM plc is expected to report next earnings on November 4, 2026 (in NaN days), with a consensus EPS estimate of $1.48. TRMD has beaten EPS estimates in 4 of its last 12 reported quarters (average surprise -4.2% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 26, 2026 | $3.31 | $3.25 | -1.8% | $512M | +2.6% |
| May 13, 2026 | $1.33 | $1.18 | -11.3% | $286M | -3.8% |
| Nov 6, 2025 | $0.82 | $0.77 | -5.6% | $343M | +25.7% |
| Aug 14, 2025 | $0.57 | $0.58 | +1.8% | $315M | +51.8% |
| May 8, 2025 | $0.64 | $0.62 | -3.1% | $329M | +55.8% |
| Mar 6, 2025 | $0.81 | $0.75 | -7.4% | $305M | +38.4% |
| Nov 7, 2024 | $1.22 | $1.35 | +10.7% | $372M | +32.6% |
| Aug 15, 2024 | $2.02 | $2.02 | +0.0% | $438M | +33.5% |
| Mar 7, 2024 | $1.75 | $1.56 | -10.9% | $398M | +30.6% |
| Nov 9, 2023 | $1.32 | $1.42 | +7.6% | $358M | +53.0% |
| Aug 17, 2023 | $2.03 | $2.14 | +5.4% | $384M | +33.7% |
| May 11, 2023 | $2.23 | $1.80 | -19.3% | $390M | +39.2% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q2 FY2026 · August 26, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- **Record Financial Performance**: The second quarter was the strongest in company history, driven by exceptionally strong freight markets resulting from geopolitical tensions in the Middle East and disruptions to global oil trade flows. - **One TORM Advantage**: The integrated operating model aligns commercial, technical, and operational decisions, allowing for rapid reaction to market changes, optimized fleet deployment, and disciplined cost management. - **Fleet Renewal Strategy**: The company is shifting focus toward newbuilding vessels due to increasing secondhand vessel prices. A phased pipeline of resale and new building deliveries is established through 2029 to ensure a modern, efficient fleet. - **Shareholder Returns**: The board approved an interim dividend of USD 2.4 per share (totaling USD 246 million). Since 2023, the company has returned USD 1.5 billion to shareholders while expanding its fleet from 78 to 97 vessels. - **Market Resilience**: Despite Strait of Hormuz disruptions, the product tanker market remained resilient due to longer haul movements, trade rerouting, and inventory releases. Effective supply tightened as ~70 LR2 vessels shifted to crude transport ('dirty up'). - **Geopolitical Impact**: Ongoing tensions have extended voyage durations significantly (e.g., +30 days for one vessel), effectively removing capacity from the market. Sanctions on aging vessels further constrain effective supply.
Guidance
- **Full Year TCE Guidance Increased**: The midpoint of full-year TCE guidance was raised from USD 1.3 billion to USD 1.5 billion. The new range is USD 1.4 billion to USD 1.6 billion (previously USD 1.15 billion to USD 1.45 billion). - **EBITDA Guidance Increased**: Full-year EBITDA guidance was raised to between USD 1 billion and USD 1.2 billion (previously USD 800 million to USD 1.1 billion). - **Increased Visibility**: With more than half the year completed and significant contract coverage, the guidance range has narrowed to +/- USD 100 million around the midpoint, reflecting higher earnings visibility. - **Outlook**: Management expects sustained strength in freight rates supported by ongoing geopolitical uncertainty and structural inefficiencies in global oil flows.
Segment performance
The transcript does not provide a breakdown of financial performance by specific product segment (e.g., MR, LR1, LR2) in terms of absolute revenue contribution percentages. However, it reports consolidated results: TCE earnings reached USD 512 million (more than double the prior year's USD 208 million), EBITDA was USD 416 million, and Net Profit was USD 338 million. Average daily TCE rates were USD 59,301, with LR2 vessels earning approximately USD 67,000 per day and LR1/MR vessels generating just above USD 57,000 per day.
Risks & headwinds
- **Geopolitical Instability**: Continued tensions in the Middle East, including disruptions around the Strait of Hormuz and Houthi naval blockades, create volatility and inefficiencies in global trade flows. - **Supply Chain Disruptions**: Rerouting of cargoes (e.g., via Cape of Good Hope instead of Suez) extends voyage times, reducing effective fleet availability and increasing operational complexity. - **Regulatory and Sanction Risks**: Approximately 25% of the combined LR2 and Aframax fleet is subject to US, EU, or UK sanctions, with 60% of those being over 20 years old, limiting their return to mainstream trading. - **Market Volatility**: The industry experiences sharp fluctuations in freight rates, requiring a flexible commercial platform to capture opportunities and manage risks.
Analyst Q&A
Q: Analyst asked if TORM would accelerate divestitures of older vessels to lock in high secondhand prices, given that ~30% of the fleet is 15+ years old. /
A: CEO stated they considered this but found that the Net Present Value (NPV) of selling assets was lower than keeping them, especially given the current strong market environment and the value of maintaining fleet scale and flexibility. They prioritize long-term value creation over short-term asset sales.
Q: Analyst noted that MR rates had normalized back to averages while LR2 rates hit highs, asking if there is a catch-up trade for MRs once global trade normalizes. /
A: CEO explained that MR demand depends on 'spillover' trades from refineries. As long as total crude volumes are below pre-conflict levels, there isn't enough excess product to drive significant MR arbitrage trades. He expects MR rates to improve only when crude volumes meet or exceed daily consumption, allowing refineries to reopen marginal trades.
Q: Analyst asked about the drivers behind the recent rebound in LR2 rates despite lower cargo flows, specifically regarding ship-to-ship (STS) transfers. /
A: CEO attributed the strength to two factors: first, 70 fewer LR2s are available for clean products due to 'dirty up' into crude transport; second, Middle Eastern producers are strategically expanding STS transfers ('oil bridges') to control their export destiny amid uncertainty. This strategic shift increases demand for shuttle services, tightening effective supply for clean products.
Q: Analyst questioned why TORM is focusing newbuild investments on MRs rather than LR2s, given the strong LR2 market. /
A: CEO clarified that the decision is based on investment economics—specifically newbuild prices, delivery schedules, and specifications—rather than sentiment. Currently, MR newbuilds offer the best risk-adjusted returns for shareholders compared to alternatives like LR1 or LR2. CFO added that financing will be at standard 50% leverage, leveraging low interest rates and long funding structures.