Finance
TomTom sees lower 2025 earnings on automotive market slowdown, shares drop
Published by Global Banking and Finance Review
Posted on February 4, 2025
2 min readLast updated: January 26, 2026
Quick Summary
TomTom forecasts lower 2025 earnings due to a slowdown in the automotive market, causing a 12.4% drop in shares. Revenue slightly exceeded expectations.
TomTom Projects Lower 2025 Earnings Amid Automotive Market Decline
By Hugo Lhomedet and Mathias de Rozario
(Reuters) -Digital mapping specialist TomTom posted a 2% drop in its annual revenue on Tuesday, slightly above estimates, and forecast lower 2025 earnings on a continued slowdown in the automotive market, sending its shares down 12.4% in early trade.
The Amsterdam-based company posted a revenue of 574.4 million euros ($591.17 million) for the year ended Dec. 31, marginally above the 573 million euros expected in a company-provided consensus.
The company, which makes 57% of its sales from automotive location technology applications, has been impacted by a slowdown in the global automotive market. New car sales in Europe grew 0.9%, compared with a 13.9% jump in 2023.
Speaking on the sector headwinds, CEO Harold Goddijn said "there are a lot of moving parts... more so than I've ever seen before in my career."
TomTom suspended its 2025 location technology revenue outlook in July 2024 and now says it has limited visibility for 2025.
The company, which counts Volkswagen, Toyota and Stellantis among its customers, expects 2025 revenue between 505 million euros and 565 million euros.
It sees location technology revenue of 440 million-490 million euros, and free cash flow at break-even.
ING analyst Marc Hesselink sees the guidance as "disappointing", adding it provides significant room for error.
The location data pioneer, which started by providing a navigational tool for turn-by-turn directions, has gone through major restructuring and is now developing self-driving maps that integrate consumer data and driver assistance systems.
Goddijn says the transition to their new platform TomTom Orbis was "painful" but underlines an endorsement from large companies such as Microsoft.
Their historical consumer business now accounts for 14.8% of the group's revenue, after falling 10% in 2024.
"It is still a bit of life... still profitable", said Goddijn, adding it is still their fastest route to volume, feedback, testing and user concepts.
($1 = 0.9716 euros)
(Reporting by Hugo Lhomedet and Mathias de Rozario; Editing by Rashmi Aich)
Key Takeaways
- •TomTom forecasts lower earnings for 2025 due to automotive market slowdown.
- •The company's shares fell by 12.4% following the announcement.
- •TomTom's revenue slightly exceeded expectations at 574.4 million euros.
- •The transition to TomTom Orbis platform was challenging but endorsed by major companies.
- •TomTom's consumer business remains profitable despite a 10% decline.
Frequently Asked Questions about TomTom sees lower 2025 earnings on automotive market slowdown, shares drop
1What revenue did TomTom report for the year ended December 31?
TomTom reported a revenue of 574.4 million euros for the year ended December 31, slightly above the expected 573 million euros.
2What is TomTom's forecast for 2025 revenue?
TomTom expects its 2025 revenue to be between 505 million euros and 565 million euros, with location technology revenue projected at 440 million-490 million euros.
3How has the automotive market affected TomTom's business?
TomTom has been impacted by a slowdown in the global automotive market, which has affected its revenue, as 57% of its sales come from automotive location technology applications.
4What did CEO Harold Goddijn say about the company's outlook?
CEO Harold Goddijn mentioned that there are many moving parts affecting the company, and he expressed disappointment over the limited visibility for 2025 earnings.
5What challenges has TomTom faced in its transition to new technology?
TomTom's transition to the new platform, TomTom Orbis, was described by Goddijn as 'painful', although it has received endorsements from large companies like Microsoft.
