TORM plc (TRMD): ANSOFF MATRIX [Dec-2025 Updated]

You're sitting on a solid foundation, with TORM plc projecting an Adjusted EBITDA between USD 540 million and USD 590 million for 2025, which means it's time to stop just managing the market and start aggressively planning the next growth phase. As an analyst who's seen a few cycles, I've mapped out exactly how the company can deploy that capital using the Ansoff Matrix-from locking in current high rates through Market Penetration to exploring brand-new revenue streams like green fuel transport in the Diversification quadrant. Honestly, the next move defintely matters more than the last one; so, let's dive into the four clear, actionable strategies below to see where TORM should place its bets for sustained outperformance.

TORM plc (TRMD) - Ansoff Matrix: Market Penetration

You're looking at how TORM plc can deepen its hold in its current product tanker markets, which is the essence of market penetration. This strategy relies on maximizing the value from the existing asset base and customer base, so the numbers here are about locking in revenue and optimizing operations.

Securing future revenue is a primary lever here. As of 31 October 2025, TORM plc had already fixed 89% of its full-year 2025 earning days at a strong average rate of USD/day 28,281. This locks in a significant portion of the year's revenue stream, providing a solid base against spot market volatility. The remaining exposure for 2025 is 11% of earning days, equivalent to 3,625 days. To give you a sense of the sensitivity, a change in freight rates of USD/day 1,000 will impact EBITDA by approximately USD 4m.

The operational focus is on extracting maximum value from the fleet. Following agreed acquisitions in the fourth quarter of 2025, TORM plc's fleet size is set to be 92 vessels. The 'One TORM' integrated operating model is the mechanism to drive utilization across this fleet. For context on the recent performance environment, Time Charter Equivalent (TCE) earnings for the third quarter of 2025 totaled USD 236.4m, resulting in a basic Earnings Per Share (EPS) of USD 0.79 for that quarter.

Technological efficiency is a key enabler for competitive pricing. While the exact current percentage is not specified, TORM plc had installed 46 exhaust gas cleaning systems (scrubbers) as of March 2025, which supports offering competitive freight rates on those equipped vessels. This efficiency drive is part of the overall optimization that supports the integrated model.

Deepening customer relationships is a strategic action point, targeting existing major clients like ExxonMobil and BP to secure a larger share of their refined product volume requirements. This is about increasing the share of wallet within established trading lanes.

The focus on high-demand, short-haul MR routes, such as US East Coast gasoline movements, capitalizes on regional refinery imbalances. This tactical focus helps maintain high utilization rates for the MR segment of the fleet, which is a core part of TORM plc's structure.

Here is a snapshot of the financial context surrounding the Q3 2025 performance:

The company also secured significant financial flexibility in July 2025, obtaining financing commitments of up to USD 857m to refinance agreements covering 22 vessels.

Market penetration actions are supported by the following operational focus areas:

• Secure long-term time charters for the 89% of 2025 earning days already fixed at USD/day 28,281.
• Increase utilization of the existing 92-vessel product tanker fleet via the 'One TORM' model.
• Target deeper contract relationships with key existing customers like ExxonMobil and BP.
• Maximize efficiency benefit from the 46 scrubber-equipped vessels as of March 2025.
• Focus on high-demand, short-haul MR routes, like US East Coast gasoline.

Finance: review the cash flow impact of the remaining 3,625 unfixed earning days by end of year.

TORM plc (TRMD) - Ansoff Matrix: Market Development

TORM plc operates a wholly owned fleet of around 92 vessels following expected Q4 2025 transactions, configured to move refined petroleum products globally. The fleet focuses on the LR2, LR1, and MR vessel classes.

The LR2 vessels, with capacity between 117 - 122,000 m3, are typically employed on long trade routes, such as naphtha transportation from the Middle East to the Far East and diesel from the eastern hemisphere into the Atlantic. For the third quarter of 2025, the LR2 class achieved Time Charter Equivalent (TCE) rates of USD/day 38,685.

The MR vessels, often called the workhorses, have capacity between 50 - 57,000 m3 and cover shorter and coastal trades, with a typical trade example being gasoline from Europe to the US East Coast. In the third quarter of 2025, MR vessels achieved TCE rates of USD/day 28,632.

Geopolitical shifts, including tighter U.S. sanctions on Iran and Venezuela, were noted to positively influence the crude tanker segment by redirecting trade and increasing utilization of the non-sanctioned fleet in early 2025. Trade volumes on routes most affected by the Red Sea disruption had declined by around one-third by early 2025. The Aframax/LR2 orderbook jumped to near 40% of that fleet's capacity on order for delivery over 2025-2027, with over 200 Aframax/LR2 newbuilds scheduled.

TORM plc's overall performance for the first nine months of 2025 included Time Charter Equivalent (TCE) earnings of USD 658.7m, compared to USD 920.1m for the same period in 2024. The net profit for the first nine months of 2025 was USD 199.2m. The company narrowed its full-year 2025 TCE guidance to a range of USD 875m - 925m as of November 6, 2025.

The following table summarizes the fleet class performance and capacity relevant to market development opportunities as of Q3 2025:

The company's integrated business model and operational platform, One TORM, supports deployment efficiency across its fleet. TORM has 10 offices globally, including locations in Singapore, the UAE, and the US.

Market development actions are supported by the following financial context:

• Interim dividend for Q3 2025 is USD 0.62 per share, totaling an expected payment of USD 60.7m.
• The Q3 2025 dividend distribution is equivalent to 78% of net profit.
• Return on Invested Capital for Q3 2025 was 13.8%.
• Basic EPS for Q3 2025 was USD 0.79.
• As of October 31, 2025, 55% of Q4 2025 earning days were covered at an average rate of USD/day 30,156.

For the full-year 2025, 89% of earning days have been fixed at an average rate of USD/day 28,281. The remaining open earning days in 2025 equate to 3,625 days. A change of USD/day 1,000 in freight rates impacts EBITDA by approximately USD 4m.

TORM's liquidity position as of September 30, 2025, was USD 652.3m, which included undrawn credit facilities of USD 432.6m. Total liabilities as of September 30, 2025, were USD 1,045.0m.

TORM plc (TRMD) - Ansoff Matrix: Product Development

You're looking at how TORM plc can move beyond simply selling more of its current product tanker capacity. Product Development means taking what TORM already knows-shipping refined products and managing complex marine equipment-and applying it to a new or enhanced offering for existing clients.

The existing fleet, with an average age of 11.3 years, presents a clear opportunity for premium product differentiation through retrofitting. To support this, TORM plc has already equipped approximately 85% of its fleet with scrubbers as of the end of 2024. The company has also set an internal goal to reduce carbon intensity by 40% by 2025 compared to the IMO baseline, having already achieved a 39.6% reduction in Annual Efficiency Ratio (AER) versus the 2008 baseline. The long-term ambition is zero CO2 emissions from the operating fleet by 2050.

For existing oil major clients, offering dual-fuel ready newbuilds directly addresses their own decarbonization needs. While specific dual-fuel newbuild orders aren't detailed, TORM plc is actively managing its fleet composition in 2025, selling older tonnage (e.g., 2008-built MRs) and acquiring newer vessels (e.g., 2014-built MRs) to reach the current fleet size of 92 vessels. The company has also noted looking at methanol and ammonia as pathway fuels.

Developing and marketing advanced, green marine equipment leverages the existing Marine Engineering segment. Activity in this segment increased during the third quarter of 2025. The company has invested in its digital platform, One TORM, to gain detailed insight into each vessel's energy consumption patterns.

Introducing specialized chemical tanker services is a slight commodity shift. The core product tanker fleet consists of MR, LR1, and LR2 classes. The financial performance in the first nine months of 2025 shows the underlying market strength TORM plc is operating within, even with rate normalization:

• TCE Earnings (9M 2025): USD 658.7m
• Adjusted EBITDA (9M 2025): USD 426.0m
• Net Profit (9M 2025): USD 199.2m
• Full-Year 2025 Expected TCE Earnings Range: USD 875m - 925m
• Q3 2025 TCE Rate Achieved: USD/day 31,012 average
• Q3 2025 Basic EPS: USD 0.79
• Q3 2025 Return on Invested Capital: 13.8%

For the remainder of 2025, as of October 31, 2025, 11% of earning days remained open, equivalent to 3,625 days. A change of USD/day 1,000 in freight rates is estimated to impact EBITDA by approximately USD 4m for the full year 2025.

TORM plc (TRMD) - Ansoff Matrix: Diversification

You're looking at how TORM plc can move beyond its core refined oil products business, which is a classic diversification play. We need to ground this in the numbers from 2025, so let's see what the current performance suggests about the runway for these new ventures.

Enter the nascent green fuel transport market (e.g., ammonia, methanol, or liquid $\text{CO}_2$) by ordering specialized small-scale carriers. TORM plc is already positioning for this shift, as evidenced by its commitment to compliance with the FuelEU Maritime Regulation, which requires reducing greenhouse gas intensity. Specifically, as of 2025, TORM will commence using some biofuel on voyages involving EU trading. This is a direct step into a new product supply chain, even if it is currently focused on compliance rather than pure new market capture via specialized vessels.

Re-enter the dry bulk carrier segment, a historical TORM business, to counterbalance the cyclicality of the product tanker market. TORM plc currently operates a fleet that, as of late 2025, will stand at 92 vessels following several transactions, primarily focused on MR and LR product tankers. The core product tanker business in Q3 2025 generated Time Charter Equivalent (TCE) earnings of $\text{USD }236.4\text{m}$. For the full year 2025, TCE earnings guidance is narrowed to a range of $\text{USD }875\text{m}$ to $\text{USD }925\text{m}$. The $\text{13.8\%}$ Return on Invested Capital for Q3 2025 shows the current segment's profitability, which any dry bulk venture would need to match or exceed to be worthwhile.

Acquire a minority stake in a port logistics or bunkering operation to vertically integrate and capture margin outside of pure vessel chartering. While TORM plc secured financing commitments of up to $\text{USD }857\text{m}$ in July 2025 to enhance capital flexibility, there are no publicly disclosed figures for a minority stake acquisition in a port logistics or bunkering operation as part of the 2025 strategy. The focus on operational efficiency is clear, though, with $\text{89\%}$ of the full-year 2025 earning days fixed at an average TCE of $\text{USD/day }28,281$.

Form a joint venture with a renewable energy company to transport biofuels, a new product in a new supply chain market. The existing move to use biofuel in 2025 for EU voyages suggests TORM plc is already engaging with the biofuel supply chain, which is the precursor to a larger JV structure. The Q3 2025 basic Earnings Per Share (EPS) was $\text{USD }0.79$, down from $\text{USD }1.38$ in Q3 2024, showing the sensitivity to freight rate normalization and highlighting the need for new, potentially more stable, revenue streams like those from long-term biofuel transport contracts.

Here are the key operational and financial snapshots from the latest reporting period:

• Q3 2025 TCE: $\text{USD }236.4\text{m}$
• Q3 2025 Net Profit: $\text{USD }77.6\text{m}$
• Q3 2025 Basic EPS: $\text{USD }0.79$
• Q3 2025 ROIC: $\text{13.8\%}$
• Interim Dividend Q3 2025: $\text{USD }0.62$ per share
• Total Expected Dividend Payment Q3 2025: $\text{USD }60.7\text{m}$
• Fleet Size Post Q4 2025 Transactions: 92 vessels

The Q3 2025 average TCE rate was $\text{USD/day }31,012$, broken down by vessel class as follows:

The forward-looking coverage for the remainder of 2025 shows where the near-term revenue is locked in:

That remaining $\text{11\%}$ of 2025 earning days, equivalent to 3,625 days, is completely open to spot market fluctuations. Finance: draft 13-week cash view by Friday.