TomTom beats expectations as auto sector sales rebound
Dutch navigation and digital mapping company TomTom reported quarterly earnings far exceeding expectations, driven by a recovery in automotive demand and tighter cost management. The company posted an operating profit of 8.4 million euros in the third quarter, sharply higher than analysts’ consensus of 2 million euros and a marked improvement from the 4.1 million euro loss recorded a year earlier.
Following the announcement, TomTom’s shares surged over 7% in early Amsterdam trading. CEO and co-founder Harold Goddijn attributed the strong results to a mix of growing automotive revenues and cost discipline, highlighting that process standardization across customer operating systems has increased efficiency and predictability.
In June, TomTom announced plans to cut 300 jobs as part of an AI-driven restructuring strategy aimed at streamlining operations. The firm’s automotive location technology unit, its largest division, was the only one to post revenue growth — a 2% increase — as global carmakers step up investment in navigation and self-driving technologies.
Despite lingering uncertainty in the car market, Goddijn noted a renewed appetite for automation among manufacturers in Japan, China, Europe, and the United States. While its consumer GPS products continue to see slowing demand, TomTom’s app remains profitable, supporting the development of its high-definition maps and connected driving systems.