Torm (NASDAQ:TRMD) Issues Earnings Results, Beats Estimates By $0.04 EPS

by · The Markets Daily

Torm (NASDAQ:TRMD – Get Free Report) issued its quarterly earnings results on Thursday. The company reported $0.87 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.83 by $0.04, Zacks reports. The firm had revenue of $347.60 million for the quarter, compared to analyst estimates of $236.21 million. Torm had a net margin of 21.37% and a return on equity of 13.03%.

Here are the key takeaways from Torm’s conference call:

  • Strong financial results and shareholder returns: Q4 TCE was $251m with net profit $87m, full-year TCE $910m and net profit $286m, and the board declared a Q4 dividend of $0.70 bringing total 2025 dividends to $2.12 per share (c. $204–212m returned).
  • Outperformance and confident outlook: Management says the One TORM platform consistently delivers premium rates vs peers (MR premium materially contributed to dividends), 70% of Q1 days are fixed at ~ $34,926/day, and 2026 guidance is TCE $850m–$1.25bn and EBITDA $500m–$900m.
  • Fleet and balance-sheet flexibility: The fleet reached 95 vessels after eight Q4 acquisitions that have already appreciated in broker valuations; fleet broker value is $3.2bn, NAV $2.6bn, and net interest-bearing debt is $848m (net LTV ~29.4%), leaving room for opportunistic investments.
  • Geopolitical and sanction-driven uncertainty: Extensive sanctions (200+ Aframax/LR2 vessels added in 2025; ~25% of Aframax/LR2 now sanctioned) have tightened clean-tonnage and increased market inefficiencies and compliance risk, creating both upside for rates and material operational/strategic uncertainty.

Torm Stock Performance

Shares of NASDAQ:TRMD traded up $0.86 during trading on Friday, reaching $30.04. 743,279 shares of the stock were exchanged, compared to its average volume of 560,793. The firm has a market cap of $2.82 billion, a PE ratio of 11.09 and a beta of 0.04. The company has a current ratio of 2.37, a quick ratio of 2.07 and a debt-to-equity ratio of 0.36. Torm has a 12 month low of $13.60 and a 12 month high of $30.27. The stock has a 50-day moving average price of $23.26 and a 200-day moving average price of $22.06.

Torm Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, March 25th. Investors of record on Thursday, March 12th will be paid a $0.70 dividend. This is an increase from Torm’s previous quarterly dividend of $0.62. The ex-dividend date is Thursday, March 12th. This represents a $2.80 dividend on an annualized basis and a yield of 9.3%. Torm’s dividend payout ratio (DPR) is currently 66.54%.

Wall Street Analysts Forecast Growth

Several research analysts recently commented on TRMD shares. Evercore reissued an “outperform” rating and set a $34.00 price target on shares of Torm in a research report on Thursday. Fearnley Fonds raised Torm from a “hold” rating to a “strong-buy” rating in a report on Thursday, November 13th. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $34.00.

View Our Latest Stock Analysis on Torm

Key Headlines Impacting Torm

Here are the key news stories impacting Torm this week:

  • Positive Sentiment: Q4 earnings beat and strong revenue — Torm reported $0.87 EPS (vs. $0.83 est.) and $347.6M revenue (well above consensus), with healthy margins and a 13% ROE, underpinning the rally. TORM PLC (TRMD) Q4 2025 Earnings Call Highlights
  • Positive Sentiment: Dividend increase — Board declared a quarterly dividend of $0.70 (annualized yield ~9.5%), a 12.9% rise versus the prior payout; signals strong cash flow and returns to shareholders (ex-dividend Mar 12).
  • Positive Sentiment: Positive annual report & outlook — Management said 2025 finished strongly and reiterated a favorable 2026 market outlook, supporting expectations for continued cash generation and shareholder value creation. TORM plc Annual Report 2025, Dividend Distribution, and Financial Outlook 2026
  • Positive Sentiment: Short interest fell sharply in February (down ~47% month-over-month), lowering potential short-pressure and squeeze risk — constructive for near-term price stability.
  • Neutral Sentiment: Long-term incentive program — Board granted RSUs/restricted options to employees to align management with shareholder returns; supports alignment but is standard governance practice. TORM plc Long Term Incentive Program
  • Neutral Sentiment: Valuation debate over fleet renewal vs. dividends — coverage notes investors are weighing higher payouts against continued fleet investment needs; could keep sentiment mixed depending on capital-allocation expectations. TORM Balances Fleet Renewal And Dividend Payouts As Valuation Debate Grows

Institutional Trading of Torm

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Royal Bank of Canada increased its holdings in shares of Torm by 1,346.6% during the first quarter. Royal Bank of Canada now owns 87,285 shares of the company’s stock worth $1,438,000 after purchasing an additional 81,251 shares during the period. NewEdge Advisors LLC increased its stake in Torm by 39.9% during the 1st quarter. NewEdge Advisors LLC now owns 16,740 shares of the company’s stock worth $276,000 after acquiring an additional 4,776 shares during the period. Geode Capital Management LLC raised its holdings in Torm by 0.7% in the 2nd quarter. Geode Capital Management LLC now owns 83,133 shares of the company’s stock valued at $1,385,000 after acquiring an additional 611 shares in the last quarter. Cetera Investment Advisers lifted its position in shares of Torm by 22.4% during the 2nd quarter. Cetera Investment Advisers now owns 17,610 shares of the company’s stock valued at $293,000 after acquiring an additional 3,221 shares during the period. Finally, Invesco Ltd. acquired a new stake in shares of Torm during the 2nd quarter worth $190,000. Institutional investors and hedge funds own 73.89% of the company’s stock.

About Torm

(Get Free Report)

Torm A/S (NASDAQ: TRMD) is an international shipping company specializing in the transportation of refined petroleum products. The firm owns and operates a modern fleet of product tankers, including both Handysize and MR vessels, which are designed to carry a broad range of clean petroleum cargoes such as gasoline, jet fuel and diesel. Torm’s core business revolves around voyage and time-charter contracts with major oil companies, trading houses and other energy sector clients around the world.

The company’s fleet is deployed on global trade routes, with particular focus on major refining and consumption regions in Europe, North America and Asia.

Further Reading