Toromont Industries Ltd
TSX:TIH
Toromont Industries Ltd
Toromont Industries Ltd., a name synonymous with robust growth and strategic expansion in the industrial sector, has engineered its success through a sharp focus on two main business segments: Equipment Group and CIMCO. In the heart of their operations lies the Equipment Group, a leading force in distributing industrial and construction equipment. Toromont stands as a formidable presence in Canada and beyond by leveraging partnerships with global giants like Caterpillar. Here, their income streams flourish through the seamless orchestration of sales, rentals, and committed after-market support. Their prowess in this arena extends to delivering machinery solutions tailored to industries ranging from mining to agriculture, creating a reliable revenue foundation built on comprehensive service offerings and enduring customer relationships.
Parallelly, the heartbeat of innovation resonates within CIMCO, a leader in industrial and recreational refrigeration systems. This division not only designs and manufactures but also installs and services state-of-the-art refrigeration systems, catering to needs as varied as food processing plants and sports facilities. By capitalizing on trends towards energy-efficient and sustainable solutions, CIMCO propels Toromont into markets eager for forward-thinking refrigeration technology. Through these synergistic segments, Toromont Industries crafts a business narrative rich with resilient revenue flows, underpinned by a reputation for excellence and a strategic alignment with market demands, ensuring its stable footprint in the industrial landscape.
Toromont Industries Ltd., a name synonymous with robust growth and strategic expansion in the industrial sector, has engineered its success through a sharp focus on two main business segments: Equipment Group and CIMCO. In the heart of their operations lies the Equipment Group, a leading force in distributing industrial and construction equipment. Toromont stands as a formidable presence in Canada and beyond by leveraging partnerships with global giants like Caterpillar. Here, their income streams flourish through the seamless orchestration of sales, rentals, and committed after-market support. Their prowess in this arena extends to delivering machinery solutions tailored to industries ranging from mining to agriculture, creating a reliable revenue foundation built on comprehensive service offerings and enduring customer relationships.
Parallelly, the heartbeat of innovation resonates within CIMCO, a leader in industrial and recreational refrigeration systems. This division not only designs and manufactures but also installs and services state-of-the-art refrigeration systems, catering to needs as varied as food processing plants and sports facilities. By capitalizing on trends towards energy-efficient and sustainable solutions, CIMCO propels Toromont into markets eager for forward-thinking refrigeration technology. Through these synergistic segments, Toromont Industries crafts a business narrative rich with resilient revenue flows, underpinned by a reputation for excellence and a strategic alignment with market demands, ensuring its stable footprint in the industrial landscape.
Revenue Growth: Toromont reported a 9% increase in Q4 revenue and 4% for the year, with strong contributions from both the Equipment Group and CIMCO, as well as the newly acquired AVL business.
Bookings & Backlog: Equipment Group bookings jumped 71% in Q4, led by mining and power systems, driving total backlog up 46% year-over-year to $1.5 billion.
Profitability: Operating income rose 3% in Q4 and 2% for the year, supported by higher revenue and improved gross margins despite higher expenses.
AVL Acquisition Impact: AVL ramped production but near-term earnings were modest due to noncash acquisition expenses; key amortization charges from AVL will wind down after Q1 2026.
Dividend Increase: Quarterly dividend was raised 7.7% to $0.56 per share, marking the 37th consecutive annual increase.
Macro & Outlook: Management remains cautious about economic uncertainty, but sees strong demand in mining and infrastructure and is optimistic about future growth.
Balance Sheet: Liquidity remains strong with $1.3 billion in cash and a negative 19% net debt to capitalization ratio.
