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TORM (One-pager): Raised guidance and continued dividends on solid Q2 2025 results

Torm
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Read the latest TORM One-pager update following the Q2 2025 results. The One-pager includes a brief description of TORM, an update on the product tanker market, the latest financials, and valuation perspectives relative to peers. It also outlines several key investment risks and key investment reasons.

TORM delivered solid Q2 2025 results in a normalized but resilient freight market. TCE earnings came in at USD 208 million and adjusted EBITDA at USD 129 million, compared to exceptionally strong levels a year ago. Net profit was USD 59 million, translating into an ROIC of 10%. Freight rates held steady during the quarter, supported by strong US exports and recovering East-West trade, despite continued disruptions in the Red Sea and geopolitical tensions in the Middle East.

Management raised its full-year 2025 guidance, now expecting TCE earnings of USD 800-950 million (previously 700-900 million) and EBITDA of USD 475-625 million (previously 400-600 million). As part of its active capital allocation strategy, TORM sold three older vessels in Q2 while exercising purchase options on 13 modern leaseback vessels to strengthen its owned fleet. The company maintained its quarterly dividend distribution, declaring USD 0.40/share for Q2 (67% payout ratio).

To learn more about TORM, its updated outlook for 2025, and beyond, read the full One-pager or catch up on the latest Q2 2025 earnings presentation with CFO Kim Balle (in Danish). Link: https://www.inderes.dk/videos/torm-praesentation-af-regnskabet-for-2-kvartal-2025

Disclaimer: HC Andersen Capital receives payment from TORM for a DigitalIR/corporate visibility subscription agreement / Philip Coombes 13:08 18 August 2025

TORM is a leading international owner and operator of product tankers, transporting refined oil products. TORM is listed on Nasdaq Copenhagen and on the Nasdaq US, with a wholly owned fleet of approx. 90 vessels (mostly scrubber-fitted), spanning all large product tanker vessel segments with a focus on LR2, LR1, and MR. TORM has a majority shareholder in Oaktree Capital Management (55%). TORM engages in vessel trading to ensure fleet renewal and pursue secondary market opportunities that are accretive to NAV.

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