Toro Co
NYSE:TTC
Toro Co
The Toro Company, established over a century ago, has grown from its modest beginnings supplying engines for farm tractors to becoming a powerhouse in the outdoor power solutions industry. Headquartered in Bloomington, Minnesota, this venerable institution has carved out a formidable niche through a diversified portfolio that caters to a broad spectrum of customers, including homeowners, professional contractors, and golf courses worldwide. Toro's prowess lies in its ability to innovate and adapt, consistently delivering reliable, efficient machinery and irrigation products. The company's commitment to environmental sustainability is also evident in its focus on developing eco-friendly technologies, ranging from water management solutions to energy-efficient tools.
Toro’s revenue is generated primarily through the sale of its products, which include lawnmowers, snow blowers, landscape equipment, and irrigation systems. What sets Toro apart in the competitive marketplace is its robust distribution network, which spans more than 90 countries. This strategic reach not only ensures constant engagement with its customer base but also provides a steady stream of income. By maintaining a strong focus on after-sales service, Toro strengthens customer loyalty, ensuring repeat business and enhancing brand credibility. This integrative approach ensures that as the seasons change, so too do the company's offerings, all while maintaining an unwavering focus on quality and innovation to drive profitability.
The Toro Company, established over a century ago, has grown from its modest beginnings supplying engines for farm tractors to becoming a powerhouse in the outdoor power solutions industry. Headquartered in Bloomington, Minnesota, this venerable institution has carved out a formidable niche through a diversified portfolio that caters to a broad spectrum of customers, including homeowners, professional contractors, and golf courses worldwide. Toro's prowess lies in its ability to innovate and adapt, consistently delivering reliable, efficient machinery and irrigation products. The company's commitment to environmental sustainability is also evident in its focus on developing eco-friendly technologies, ranging from water management solutions to energy-efficient tools.
Toro’s revenue is generated primarily through the sale of its products, which include lawnmowers, snow blowers, landscape equipment, and irrigation systems. What sets Toro apart in the competitive marketplace is its robust distribution network, which spans more than 90 countries. This strategic reach not only ensures constant engagement with its customer base but also provides a steady stream of income. By maintaining a strong focus on after-sales service, Toro strengthens customer loyalty, ensuring repeat business and enhancing brand credibility. This integrative approach ensures that as the seasons change, so too do the company's offerings, all while maintaining an unwavering focus on quality and innovation to drive profitability.
Q4 Beat: Toro reported fourth quarter sales and adjusted EPS that exceeded its expectations, with consolidated net sales of $1.07 billion and adjusted EPS of $0.91.
Full-Year Performance: Fiscal 2025 consolidated net sales reached $4.51 billion, at the high end of guidance, and adjusted EPS of $4.20 beat guidance and prior year.
AMP Program: Cost savings target for the amplifying maximum productivity (AMP) program was increased to $125 million by the end of 2026, up from $100 million.
Tornado Acquisition: Closed the acquisition of Tornado Infrastructure Equipment, adding to underground construction capabilities and expected to drive professional segment growth.
2026 Guidance: Fiscal 2026 net sales expected to rise 2% to 5%, with adjusted EPS guidance of $4.35 to $4.50; professional segment to grow mid-single digits, residential to decline low to mid-single digits.
Strong Cash Flow: Achieved record free cash flow of $578 million, with a conversion rate of 146%, and returned $441 million to shareholders.
Backlog and Inventory: Backlog improved by $400 million year-over-year, and channel inventory levels have normalized across most product lines.
Dividend & Buybacks: Quarterly dividend raised from $0.38 to $0.39; new authorization to repurchase up to 6 million additional shares.
