“TORM delivered its strongest quarterly result so far in 2025, demonstrating the strength of our integrated operating model and the people behind it,” says Jacob Meldgaard, adding: “We continue to deliver market-leading performance and create long-term value for our shareholders.”
Financial Results
In the third quarter of 2025 TORM generated time charter equivalent earnings (TCE) of USD 236.4m including unrealized losses on derivatives of USD 7.3m (2024, same period: USD 263.4m including unrealized gains on derivatives of USD 0.8m). Adjusted EBITDA for the Group totaled USD 159.4m (2024, same period: USD 190.9m), while net profit for the period amounted to USD 77.6m (2024, same period: USD 130.7m), reflecting a development in line with previous quarters. Although rates firmed during the third quarter of 2025, overall freight rate levels for the first nine months of the year were lower compared to 2024, underscoring a normalization of market conditions.
Geopolitical volatility and broader vessel sanctions continued to add complexity and underpin the tanker market this quarter. In this market, TORM achieved TCE rates of USD/day 31,012 on average (2024, same period: USD/day 33,722), and available earning days increased to 7,859 (2024, same period: 7,788). Our vessel class LR2 achieved TCE rates of USD/day 38,685, the LR1 vessels achieved TCE rates of USD/day 29,508, and the MR vessels achieved TCE rates of USD/day 28,632.
For the third quarter of 2025, Return on Invested Capital amounted to 13.8% (2024, same period: 20.3%) reflecting the lower freight rates compared to the very high levels seen a year ago, and basic EPS amounted to USD 0.79 (2024, same period: USD 1.38).
Key Figures
| USDm | Q3 2025 | Q3 2024 | Change | 9M 2025 | 9M2024 | change |
| Time charter equivalent earnings (TCE) | 236.4 | 263.4 | (27.0) | 658.7 | 920.1 | -261.4 |
| EBITDA | 152.1 | 191.7 | (39.6) | 414.4 | 708.6 | -294.2 |
| Adjusted EBITDA* | 159.4 | 190.9 | (31.5) | 426.0 | 709.2 | -283.2 |
| Net profit/(loss) for the period | 77.6 | 130.7 | (53.1) | 199.2 | 534.1 | -334.9 |
| Unrealized gains/(losses) on derivatives | (7.3) | 0.8 | (8.1) | (11.6) | (0.6) | -11.0 |
| TCE per day (USD)* | 31,012 | 33,722 | -2,710 | 28,151 | 39,626 | -11,475 |
| Basic earnings/(loss) per share (USD) | 0.79 | 1.38 | (0.59) | 2.03 | 5.77 | (3.74) |
| Dividend per share (USD) | 0.62 | 1.20 | (0.58) | 1.42 | 4.50 | (3.08) |
| Dividend pay-out ratio | 78 % | 87 % | (9) % | 70 % | 78 % | (8) % |
* Excludes unrealized gains/losses on derivatives.
Business Highlights
In the third quarter of 2025, TORM completed the sale and delivery of the two 2008-built MR vessels; TORM Discoverer and TORM Voyager. TORM further sold the 2007-built MR vessel TORM Adventurer and acquired a 2010-built LR2 vessel, with both transactions scheduled for delivery in the fourth quarter of 2025.
In the fourth quarter, TORM has also agreed to acquire an additional four 2014-built MR vessels. After completion of these transactions, TORM’s fleet size will be 92 vessels.
In July 2025, TORM secured financing commitments of up to USD 857m on attractive terms to refinance two existing syndicated loans and lease agreements covering 22 vessels. The new structure, combining term and revolving credit facilities, strengthens the company’s capital flexibility and extends its maturity profile. To date, TORM has repurchased 13 of the 22 vessels. Two additional purchase options have been exercised, with one vessel expected to be delivered in the fourth quarter of 2025 and the other in the first quarter of 2026, while the remaining vessels are scheduled for repurchase during 2026.
The refinancing, together with expected lower maintenance cost, is anticipated to reduce TORM’s cash break-even rate. This improved structure may support higher dividend payout ratios, potentially providing additional returns to shareholders.
Distribution of Dividend
TORM’s Board of Directors has today approved an interim dividend for the third quarter of 2025 of USD 0.62 per share to be paid to the shareholders corresponding to an expected total dividend payment of USD 60.7m. The distribution for the quarter is equivalent to 78% of net profit and reflects the Distribution Policy. The payment date is 03 December 2025 to all shareholders on record as of 20 November 2025, and the ex-dividend date is 19 November 2025 for the shares listed on Nasdaq OMX Copenhagen and 20 November 2025 for the shares listed on Nasdaq New York.
Financial Outlook 2025 – INSIDE INFORMATION
As of 31 October 2025, TORM had covered 55% of the Q4 2025 earning days at an average rate of USD/day 30,156. By vessel class, coverage stood at 65% for LR2s at USD/day 33,726, 48% for LR1s at USD/day 27,907 and 52% for MRs at USD/day 28,949.
For the full-year 2025, 89% of the earning days have been fixed at an average rate of USD/day 28,281. The remaining 11% of the earning days in 2025 – equivalent to 3,625 days – remain open and thus subject to market fluctuations. A change in freight rates of USD/day 1,000 will, all else equal, impact EBITDA by approximately USD 4m.
Based on the earnings realized this far as well as the outlook for the remaining part of the year, TORM further narrows the full-year 2025 guidance. The midpoint of the guidance range is slightly increased. Thus, TCE earnings are expected to be in the range of USD 875 – 925m (previous guidance USD 800 – 950m), and EBITDA is expected to be in the range of USD 540 – 590m (previous guidance USD 475 – 625m) based on the current fleet size.