Torm (NASDAQ:TRMD) Releases Quarterly Earnings Results, Misses Estimates By $0.06 EPS

Torm (NASDAQ:TRMD) released its quarterly earnings results on Wednesday. The company reported $3.25 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $3.31 by ($0.06), FiscalAI reports. Torm had a return on equity of 28.29% and a net margin of 35.51%.The company had revenue of $662.80 million during the quarter, compared to the consensus estimate of $499.01 million.

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

• Record quarterly performance: TORM reported Q2 TCE earnings of $512 million, EBITDA of $416 million, and net profit of $338 million, driven by freight rates averaging $59,301 per day across the fleet.
• Higher 2026 outlook and shareholder returns: The company raised full-year TCE guidance to $1.4 billion–$1.6 billion and EBITDA guidance to $1.0 billion–$1.2 billion, while approving a $2.40 per-share interim dividend totaling $246 million.
• Strong balance sheet: Net interest-bearing debt fell to $715 million and net loan-to-value improved to 22.4%, despite fleet investments, giving TORM flexibility to pursue growth and continue distributions.
• Tight effective product-tanker supply: Management said rerouted trade flows, ship-to-ship shuttle activity, sanctions, and roughly 70 LR2 vessels moving into crude trades have reduced effective clean-product capacity and could support freight rates.
• Fleet renewal remains a priority: TORM expanded to 97 vessels and is building a delivery pipeline of resale and newbuild vessels from 2027 through 2029, primarily adding MRs and typically using about 50% vessel-level financing.

Torm Trading Up 5.7%

Torm stock opened at $31.80 on Friday. Torm has a 12 month low of $19.30 and a 12 month high of $35.33. The company has a market capitalization of $3.24 billion, a price-to-earnings ratio of 5.24 and a beta of 0.09. The business’s fifty day simple moving average is $29.33 and its two-hundred day simple moving average is $29.22. The company has a current ratio of 1.40, a quick ratio of 1.20 and a debt-to-equity ratio of 0.35.

Torm Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 24th. Shareholders of record on Thursday, September 10th will be issued a $2.40 dividend. This represents a $9.60 annualized dividend and a yield of 30.2%. This is a positive change from Torm’s previous quarterly dividend of $0.70. The ex-dividend date of this dividend is Thursday, September 10th. Torm’s dividend payout ratio is presently 60.00%.

Analyst Ratings Changes

TRMD has been the topic of several research reports. Wall Street Zen cut Torm from a “strong-buy” rating to a “buy” rating in a research report on Sunday, August 9th. Evercore reissued an “outperform” rating and issued a $38.00 target price on shares of Torm in a research report on Wednesday. Weiss Ratings restated a “hold (c)” rating on shares of Torm in a research note on Wednesday, July 15th. Finally, Pareto Securities lowered Torm from a “hold” rating to a “hold” rating in a research report on Wednesday, May 13th. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $38.00.

Hedge Funds Weigh In On Torm

Several large investors have recently modified their holdings of the stock. Cetera Investment Advisers lifted its position in Torm by 22.4% in 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 in the last quarter. Amundi purchased a new position in shares of Torm in the fourth quarter worth $279,000. NewEdge Advisors LLC lifted its holdings in shares of Torm by 39.9% during the first quarter. NewEdge Advisors LLC now owns 16,740 shares of the company’s stock valued at $276,000 after purchasing an additional 4,776 shares in the last quarter. Trexquant Investment LP bought a new position in shares of Torm during the fourth quarter valued at $261,000. Finally, Two Sigma Investments LP bought a new position in shares of Torm during the third quarter valued at $254,000. Hedge funds and other institutional investors own 73.89% of the company’s stock.

About Torm

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.