Toro Company (TTC) Financial Results Summary
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The Toro Company (TTC) Q4 2025 Financial Results Summary
Release Date: December 17, 2025
The Toro Company (NYSE: TTC) recently reported its financial results for the fourth quarter and full year of fiscal 2025, ended October 31, 2025. The results reflected a strong performance primarily driven by the Professional segment and strategic operational improvements. Below is a summary of the key findings from the report:
Financial Highlights
- Quarterly Overview (Q4):
- Net Sales: $1.07 billion, a 1% decrease compared to $1.08 billion in Q4 2024.
- Net Earnings: $73.0 million, representing a 19% decrease from $89.9 million year-over-year.
- Diluted EPS: Reported at $0.74, a 15% decrease from $0.87 in Q4 2024.
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Adjusted Diluted EPS: $0.91, down 4% from $0.95 a year earlier.
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Full-Year Overview 2025:
- Net Sales: $4.51 billion, a 2% decrease from $4.58 billion in fiscal 2024.
- Net Earnings: $316.1 million, a 25% decrease compared to $418.9 million in the prior year.
- Diluted EPS: $3.17, down 21% from $4.01 in fiscal 2024.
- Adjusted Diluted EPS: $4.20, which was a 1% increase from $4.17 a year prior.
Key Performance Metrics
- Professional Segment Performance:
- Net Sales: $910.3 million in Q4, down 0.4% from $913.9 million year-over-year.
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Earnings Margin: 19.2%, up from 18.6%, with total fiscal earnings growing 10% to $702.5 million.
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Residential Segment Performance:
- Net Sales: $147.2 million in Q4, 5.1% decrease from $155.1 million in Q4 2024.
- Loss in Quarter: $1.2 million, significantly improved from a loss of $13.8 million in the prior year.
- Full-Year Earnings: $35.8 million, a 54.3% decrease from $78.4 million in fiscal 2024.
Operational Highlights
- Gross Margin:
- Q4 gross margin improved to 32.9%, up from 32.4% in Q4 2024. The adjusted gross margin also saw an increase to 34.5% from 32.3%.
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Full-year gross margin was 33.4%, down slightly from 33.8% in fiscal 2024.
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Selling, General & Administrative (SG&A) Expenses:
- SG&A as a percentage of net sales was 24.2% in Q4, compared to 22.3% in the prior year.
Cash Flow and Shareholder Returns
- Record Free Cash Flow: The company achieved record free cash flow of $578 million, largely due to working capital improvements.
- Shareholder Returns: Toro returned $441 million to shareholders through dividends and share repurchases.
Outlook for Fiscal 2026
- Net Sales Growth: Anticipated growth range of 2% to 5% for fiscal 2026.
- Adjusted Diluted EPS Guidance: Projected between $4.35 and $4.50.
- Key Drivers: Continued investment in technology and strategic acquisitions, particularly focusing on their Tornado Infrastructure Equipment acquisition which is expected to contribute around 2% to total sales.
Dividend and Share Repurchase
- Toro maintains a strong commitment to returning value to shareholders, with a total of $441 million returned through cash dividends and share repurchases in fiscal 2025.
- Dividends Paid: Not disclosed as a new quarterly dividend amount in the report, but previous dividends were consistently paid.
Conclusion
The Toro Company demonstrated resilience in fiscal 2025, overcoming challenges with strategic operational improvements and maintaining a robust cash position. The company continues to position itself for growth in the upcoming fiscal year through targeted investments and innovative solutions in their product segments.
| Three Months Ended | Twelve Months Ended | |||
|---|---|---|---|---|
| October 31, 2025 | October 31, 2024 | October 31, 2025 | October 31, 2024 | |
| Net sales | $1,066.2 | $1,076.0 | $4,510.4 | $4,583.8 |
| Cost of sales | $715.5 | $727.0 | $3,005.6 | $3,034.5 |
| Gross profit | $350.7 | $349.0 | $1,504.8 | $1,549.3 |
| Gross margin | 32.9% | 32.4% | 33.4% | 33.8% |
| Selling, general and administrative expense | $258.2 | $240.0 | $1,013.8 | $1,016.0 |
| Non-cash impairment charge | $— | $— | $81.1 | $— |
| Operating earnings | $92.5 | $109.0 | $409.9 | $533.3 |
| Interest expense | -$13.2 | -$14.5 | -$59.1 | -$61.9 |
| Other income, net | $5.7 | $14.8 | $26.8 | $41.4 |
| Earnings before income taxes | $85.0 | $109.3 | $377.6 | $512.8 |
| Provision for income taxes | $12.0 | $19.4 | $61.5 | $93.9 |
| Net earnings | $73.0 | $89.9 | $316.1 | $418.9 |
| Basic net earnings per share of common stock | $0.74 | $0.88 | $3.18 | $4.04 |
| Diluted net earnings per share of common stock | $0.74 | $0.87 | $3.17 | $4.01 |
| Weighted-average number of shares of common stock outstanding — Basic | 98.2 | 102.7 | 99.5 | 103.8 |
| Weighted-average number of shares of common stock outstanding — Diluted | 98.5 | 103.2 | 99.8 | 104.4 |
| October 31, 2025 | October 31, 2024 | |
|---|---|---|
| ASSETS | ||
| Cash and cash equivalents | $341.0 | $199.5 |
| Receivables, net | $378.2 | $459.7 |
| Inventories, net | $920.8 | $1,038.9 |
| Prepaid expenses and other current assets | $65.1 | $66.8 |
| Total current assets | $1,705.1 | $1,764.9 |
| Property, plant, and equipment, net | $615.8 | $644.8 |
| Goodwill | $450.9 | $450.3 |
| Other intangible assets, net | $390.3 | $498.7 |
| Right-of-use assets | $114.7 | $114.5 |
| Investment in finance affiliate | $41.0 | $49.2 |
| Deferred income taxes | $105.8 | $45.0 |
| Other assets | $15.2 | $15.4 |
| Total assets | $3,438.8 | $3,582.8 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
| Current portion of long-term debt | $— | $10.0 |
| Accounts payable | $367.6 | $452.7 |
| Accrued liabilities | $525.5 | $493.0 |
| Short-term lease liabilities | $19.3 | $20.3 |
| Total current liabilities | $912.4 | $976.0 |
| Long-term debt | $921.5 | $911.8 |
| Long-term lease liabilities | $100.3 | $99.1 |
| Deferred income taxes | $0.8 | $0.5 |
| Other long-term liabilities | $50.5 | $43.5 |
| Stockholders’ equity: | ||
| Preferred stock | $— | $— |
| Common stock | $97.9 | $101.5 |
| Retained earnings | $1,390.5 | $1,496.4 |
| Accumulated other comprehensive loss | -$35.1 | -$46.0 |
| Total stockholders’ equity | $1,453.3 | $1,551.9 |
| Total liabilities and stockholders’ equity | $3,438.8 | $3,582.8 |