Torm (NASDAQ:TRMD) Posts Quarterly Earnings Results, Beats Expectations By $0.04 EPS

Torm (NASDAQ:TRMD) issued its quarterly earnings data on Thursday. The company reported $0.87 earnings per share for the quarter, topping the consensus estimate of $0.83 by $0.04, Zacks reports. The company had revenue of $347.60 million during the quarter, compared to analyst estimates of $236.21 million. Torm had a return on equity of 13.36% and a net margin of 21.29%.

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 Up 3.3%

TRMD stock traded up $0.95 during mid-day trading on Friday, reaching $30.13. The company had a trading volume of 1,019,406 shares, compared to its average volume of 498,350. The firm has a fifty day simple moving average of $23.48 and a 200 day simple moving average of $22.14. The company has a debt-to-equity ratio of 0.36, a quick ratio of 2.07 and a current ratio of 2.37. The company has a market capitalization of $2.83 billion, a price-to-earnings ratio of 10.61 and a beta of 0.04. Torm has a fifty-two week low of $13.60 and a fifty-two week high of $30.27.

Torm Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, March 25th. Shareholders of record on Thursday, March 12th will be issued a dividend of $0.70 per share. This is a positive change from Torm’s previous quarterly dividend of $0.62. The ex-dividend date is Thursday, March 12th. This represents a $2.80 annualized dividend and a yield of 9.3%. Torm’s dividend payout ratio (DPR) is currently 63.73%.

Wall Street Analyst Weigh In

TRMD has been the topic of several recent analyst reports. Evercore reaffirmed an “outperform” rating and issued a $34.00 price target on shares of Torm in a research note on Thursday. Fearnley Fonds raised shares of Torm from a “hold” rating to a “strong-buy” rating in a research report on Thursday, November 13th. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Torm currently has an average rating of “Hold” and an average price target of $34.00.

Institutional Trading of Torm

A number of large investors have recently made changes to their positions in TRMD. Quarry LP purchased a new position in Torm in the third quarter worth approximately $35,000. Tower Research Capital LLC TRC purchased a new stake in shares of Torm in the 2nd quarter valued at approximately $46,000. Wexford Capital LP acquired a new stake in shares of Torm in the 3rd quarter valued at $120,000. Invesco Ltd. purchased a new stake in shares of Torm during the 2nd quarter worth $190,000. Finally, Virtus Advisers LLC lifted its position in shares of Torm by 356.4% during the 4th quarter. Virtus Advisers LLC now owns 9,858 shares of the company’s stock worth $193,000 after purchasing an additional 7,698 shares during the last quarter. 73.89% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Torm

Here are the key news stories impacting Torm this week:

• Positive Sentiment: Quarterly results: TORM reported Q4 EPS of $0.87 beating the $0.83 consensus and revenue of $347.6M well above estimates — the beat supports stronger profitability metrics cited by management. TORM PLC (TRMD) Q4 2025 Earnings Call Highlights
• Positive Sentiment: Dividend raise: TORM declared a quarterly dividend of $0.70 (annualized yield ~9.5%), up 12.9% from the prior payout — the higher yield and clear payout policy increase investor income appeal. (Dividend details announced Feb. 26)
• Positive Sentiment: 2025 annual report and 2026 outlook: Management described a strong finish to 2025 and a favorable market outlook for 2026, reinforcing confidence in cash generation and dividend coverage. TORM plc Annual Report 2025, Dividend Distribution, and Financial Outlook 2026
• Positive Sentiment: Fleet strategy: Management highlighted strategic fleet renewal and targeted expansion measures that aim to capture improving shipping markets while supporting long?term returns. TORM Balances Fleet Renewal And Dividend Payouts As Valuation Debate Grows
• Positive Sentiment: Short interest fell sharply in February (down ~47% vs. late Jan.), reducing short?sell pressure and the risk of continued downside from short covering dynamics.
• Neutral Sentiment: Long?term incentive program: Board granted Restricted Share Units to employees to align management with shareholders — positive for alignment but carries modest dilution risk. TORM plc Long Term Incentive Program

Torm Company Profile

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.