The Toro Company (NYSE:TTC) reported strong fourth-quarter and full-year results for the period ended Oct. 31, 2025. The stock jumped after the company posted adjusted earnings and revenue above estimates and issued fiscal 2026 guidance.
Fourth-quarter net sales were $1.07 billion, compared with $1.08 billion a year earlier. Full-year net sales were $4.51 billion, compared with $4.58 billion in fiscal 2024, with the company attributing most of the decline to prior asset divestitures.
Fourth-quarter reported diluted earnings were 74 cents per share and adjusted diluted earnings were 91 cents per share, compared with reported diluted earnings of 87 cents per share and adjusted diluted earnings of 95 cents per share in the prior-year period.
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Adjusted earnings of 91 cents per share exceeded the 87-cent analyst estimate, while sales of $1.05 billion exceeded expectations.
For the full year, Toro reported diluted EPS of $3.17 and adjusted diluted EPS of $4.20, compared with diluted EPS of $4.01 and adjusted diluted EPS of $4.17 in fiscal 2024. The company stated that its full-year adjusted diluted EPS exceeded expectations.
Management Commentary
“We delivered fourth quarter and full-year performance that exceeded our expectations, driven by strength in our Professional segment and strategic investments in productivity improvement measures,” said Richard M. Olson, chairman and chief executive officer.
“Additionally, due to the accelerated performance of our AMP initiative, we are increasing our run-rate savings goal to $125 million by fiscal 2027, up from the original target of $100 million.”
Segment Performance
In the Professional segment, fourth-quarter net sales were $910 million, little changed from the prior year. Full-year Professional segment net sales increased 1.9% to $3.62 billion, and full-year earnings margin improved to 19.4%.
In the Residential segment, fourth-quarter net sales declined 5% to $147 million. Full-year Residential segment net sales fell 14% to $858 million, and full-year earnings margin declined to 4.2%.
Toro reported net cash provided by operating activities of $662 million for fiscal 2025 and free cash flow of $578 million. Cash and cash equivalents totaled $341 million at year-end, while long-term debt was approximately $922 million.
“We generated record free cash flow in fiscal 2025, largely due to working capital improvements. Our long-standing financial discipline is evident in our strong balance sheet position and contributed to positive momentum in our return on invested capital,” Olson said.
Outlook
For fiscal 2026, Toro expects fiscal 2026 adjusted EPS to be $4.35 to $4.50, compared with a $4.65 estimate, and sales of $4.601 billion to $4.736 billion, compared with a $4.632 billion estimate.
TTC Price Action: Toro shares were up 7.06% at $77.78 at the time of publication on Wednesday, according to Benzinga Pro data.
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