The Toro Company Earnings Recaps
Q2 2026
Jun 6, 2026
Toro’s shares fell 4.1% following earnings as investor optimism waned due to a cautious outlook, particularly reflected in the moderated full-year sales growth guidance and margin pressures despite solid margin expansion and strong free cash flow.
Key takeaways
- Second quarter sales grew 8.1%, with organic growth of 5.7%, driven by broad-based demand across residential (+4%) and professional (+9%) segments.
- Adjusted operating margins improved 70 basis points to 14.4%, the highest in three years, supported by the AMP productivity program and strategic cost reductions.
- Free cash flow soared to $266 million, up $181 million year-over-year, resulting in a 125% free cash flow conversion rate and enabling $361 million in shareholder returns in H1.
- Inventory reductions continue, with professional segment inventories normalized but residential and landscape contractor remain below target, indicating some supply constraints or cautious channel stocking.
- Guidance was raised for full-year sales growth to 4%–6.5%, a deceleration from recent top-line momentum, and adjusted EPS guidance was modestly increased to $4.50–$4.62, reflecting a more cautious outlook amid macro uncertainties and inflationary headwinds.
Q1 2026
Mar 5, 2026
The Toro Company reported strong first quarter results for 2026, with consolidated net sales increasing by 4.2% to $1.04 billion and adjusted earnings per share reaching $0.74, surpassing expectations.
Key takeaways
- Net sales growth driven by strong demand for snow and ice products in both Professional ($824 million) and Residential ($216 million) segments.
- Adjusted EPS increased to $0.74, up from $0.65 year-over-year, attributed to operational efficiencies and productivity improvements.
- Positive free cash flow of $14.6 million and a 22% free cash flow conversion rate, highlighting robust financial discipline and shareholder value return.
- Acquisition of Tornado Infrastructure Equipment expands growth opportunities in hydrovac excavation solutions and aligns with strategic initiatives.
- Continued implementation of AMP program contributing $95 million in cost savings, supporting profit margin preservation amidst rising costs.
Q4 2025
Dec 17, 2025
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.