Torm (NASDAQ:TRMD) Posts Quarterly Earnings Results, Misses Estimates By $0.15 EPS

Torm (NASDAQ:TRMD) announced its quarterly earnings data on Wednesday. The company reported $1.18 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.33 by ($0.15), Zacks reports. The business had revenue of $402.00 million during the quarter, compared to analyst estimates of $297.43 million. Torm had a return on equity of 13.26% and a net margin of 21.29%.

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

• TORM reported a strong Q1 2026 with TCE of $286 million, EBITDA of $201 million, and net profit of $122 million, driven by firm freight rates and good execution.
• The company raised full-year guidance to $1.15 billion-$1.45 billion of TCE and $800 million-$1.1 billion of EBITDA, citing strong market conditions and near-term visibility.
• TORM said Q2 booking conditions are exceptionally strong, with 57% of earning days already fixed at an average of $71,494 per day, providing substantial earnings visibility.
• The company continued fleet renewal and expansion, including six MR resales agreed after quarter-end, taking the fleet to 103 vessels on a fully delivered basis from 95 at quarter-end.
• TORM declared a $0.70 per share dividend at a 58% payout ratio, noting the lower ratio reflected a temporary $30 million working-capital build from higher freight rates and bunker prices.

Torm Stock Down 5.4%

Shares of TRMD stock traded down $1.87 during trading on Wednesday, hitting $32.71. 1,840,112 shares of the company were exchanged, compared to its average volume of 788,716. The company has a debt-to-equity ratio of 0.32, a quick ratio of 1.16 and a current ratio of 1.33. The firm has a market capitalization of $3.34 billion, a price-to-earnings ratio of 11.54 and a beta of 0.14. The business’s 50-day simple moving average is $29.43 and its 200 day simple moving average is $25.01. Torm has a twelve month low of $15.79 and a twelve month high of $35.33.

Torm Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, June 11th. Investors of record on Thursday, May 28th will be issued a dividend of $0.70 per share. This represents a $2.80 annualized dividend and a dividend yield of 8.6%. The ex-dividend date is Thursday, May 28th. Torm’s dividend payout ratio (DPR) is currently 71.83%.

Institutional Trading of Torm

Institutional investors have recently made changes to their positions in the stock. Royal Bank of Canada lifted its stake in Torm by 1,346.6% in the first quarter. Royal Bank of Canada now owns 87,285 shares of the company’s stock valued at $1,438,000 after acquiring an additional 81,251 shares during the last quarter. NewEdge Advisors LLC lifted its stake in Torm by 39.9% in the first quarter. NewEdge Advisors LLC now owns 16,740 shares of the company’s stock valued at $276,000 after acquiring an additional 4,776 shares during the last quarter. Geode Capital Management LLC lifted its stake in Torm by 0.7% in the second 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 during the last quarter. Cetera Investment Advisers lifted its stake in Torm by 22.4% in the second 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 last quarter. Finally, Invesco Ltd. acquired a new stake in Torm in the second quarter valued at approximately $190,000. 73.89% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

TRMD has been the subject of several recent analyst reports. Evercore set a $35.00 target price on shares of Torm in a report on Tuesday, April 21st. Wall Street Zen upgraded shares of Torm from a “hold” rating to a “buy” rating in a report on Sunday, April 12th. Weiss Ratings reiterated a “hold (c)” rating on shares of Torm in a report on Friday, April 17th. Finally, Pareto Securities cut shares of Torm from a “hold” rating to a “hold” rating in a report on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $35.00.

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.