Tomra Systems reported first-quarter earnings that exceeded analyst expectations, though revenue declined as recycling demand weakened. The Norwegian recycling technology company posted adjusted earnings per share of NOK 3.35, surpassing the NOK 3.25 consensus estimate. Revenue for the quarter totaled NOK 4.1 billion, down from NOK 4.3 billion in the year-ago period.

The revenue decline reflects challenging market conditions in the recycling sector, with reduced demand for sorting equipment and recycling solutions. Tomra attributed the weakness to economic uncertainty affecting capital spending by recycling facilities and waste management companies. The company's reverse vending machine business, which accounts for a significant portion of revenue, showed particular softness in Europe and North America.

Despite the top-line pressure, Tomra maintained its full-year guidance, signaling confidence in its cost control measures and the eventual recovery of recycling markets. The company's profit beat suggests operational efficiency improvements are helping offset softer demand. Tomra shares traded 2.1% higher in Oslo following the results, indicating investor optimism about the company's ability to navigate the current downturn.