The Toro Company reported stronger-than-expected fourth quarter earnings, driven by impressive sales and improved margins, while achieving record free cash flow and reaffirming growth strategies for 2026.

Key takeaways

• Fourth quarter consolidated net sales reached $1.07 billion, reflecting solid performance in the underground construction and snow management sectors.
• Full-year adjusted EPS rose to $4.20, outperforming both the company's guidance and the previous year, despite a 1.6% decline in total sales primarily due to strategic divestitures.
• The company generated a record free cash flow of $578 million with a conversion rate of 146%, demonstrating strong operational efficiency.
• Toro is increasing its Amplifying Maximum Productivity program savings target to $125 million by 2026, up from the previous target of $100 million.
• Recent acquisition of Tornado Infrastructure Equipment is expected to enhance Toro's service capabilities in complex infrastructure projects while expanding its geographic presence.

---