Exceeded Full-Year Expectations Driven by Strength in Underground Construction and Golf
- Professional segment full-year earnings margin of 19.4%, up from 18.0%
- Record free cash flow of $578 million, primarily driven by net working capital improvements
- Returned $441 million to shareholders via cash dividends and common stock repurchases
- Mitigated tariff headwinds and maintained margins for full-year fiscal 2025
- AMP run-rate savings target increased to $125 million by 2027, up from the initial expectation of at least $100 million
- Full-year fiscal 2026 adjusted diluted earnings per share guidance of $4.35 to $4.50
The Toro Company (NYSE: TTC), a leading global provider of solutions for the outdoor environment, today reported results for its fiscal fourth quarter and full-year ended October 31, 2025.
Fourth quarter net sales were $1.07 billion, compared to $1.08 billion in the same period of fiscal 2024. Full-year net sales were $4.51 billion, compared to $4.58 billion in fiscal 2024, with most of the difference due to prior year divestitures of non-core assets.
Fourth quarter reported diluted earnings per share (“EPS”) were $0.74 and adjusted diluted EPS were $0.91, compared to $0.87 reported diluted EPS and $0.95 adjusted diluted EPS in the same period of fiscal 2024.
Full-year reported diluted EPS were $3.17 and adjusted diluted EPS were $4.20, beating expectations, compared to $4.01 reported diluted EPS and $4.17 adjusted diluted EPS in fiscal 2024.
“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.
“Our Professional segment, which represents about eighty percent of our portfolio, achieved full-year earnings margin of 19.4%, demonstrating the resilience and quality of our core businesses. 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.”
“We generated record free cash flow in fiscal 2025, largely due to working capital improvements. Our longstanding financial discipline is evident in our strong balance sheet position and contributed to positive momentum in our return on invested capital,” added Olson.
OUTLOOK
“Looking ahead, our positive momentum is reinforced by our continued investment in technology leadership, as well as strategic acquisitions like Tornado. Our innovation and business development pipeline remains robust, and our focus on operational excellence and structural improvements is delivering meaningful cost savings in both the Professional and Residential segments. We are confident in our proven ability to generate cash and remain committed to creating value for all our stakeholders,” Olson said.
For fiscal 2026, management expects total company net sales growth in the range of 2% to 5% and adjusted diluted earnings per share in the range of $4.35 to $4.50.
- Continued strong demand and stable supply for our underground construction, golf and grounds, and professional landscape contractor businesses
- Conservative assumptions for homeowner markets reflecting current consumer dynamics
- Continued progress towards normalizing field inventories of turf products and snow and ice management solutions
- The Tornado Infrastructure Equipment acquisition which is expected to add approximately 2% to total company net sales and have a modestly accretive impact to adjusted diluted earnings per share
- Weather patterns aligned with historical averages
FOURTH-QUARTER FISCAL 2025 FINANCIAL HIGHLIGHTS
Reported Adjusted*
(dollars in millions, except per share data)
FULL-YEAR FISCAL 2025 FINANCIAL HIGHLIGHTS
Reported Adjusted*
(dollars in millions, except per share data)
SEGMENT RESULTS
Professional Segment
- Professional segment net sales for the fourth quarter were $910.3 million, down 0.4% from $913.9 million in the same period last year. The decrease was primarily driven by lower shipments of golf and grounds products and zero-turn mowers coming off strong fiscal 2024 comparables, as well as prior year divestitures, mostly offset by net price realization and higher shipments of underground construction and snow and ice management products.
- Full-year fiscal 2025 professional segment net sales were $3.62 billion, up 1.9% from $3.56 billion last year. The increase was primarily due to higher shipments of golf, grounds, and underground construction products, as well as net price realization, partially offset by prior year divestitures and lower shipments of specialty construction products.
- Professional segment earnings for the fourth quarter were $174.7 million, up 2.9% from $169.7 million in the same period last year. Professional segment earnings margin was 19.2%, up from 18.6% in the prior-year period. The increase was primarily due to net price realization and productivity improvements, partially offset by higher material and manufacturing costs and lower net sales volume.
- Full-year fiscal 2025 professional segment earnings were $702.5 million, up 10.0% compared with $638.9 million in the prior fiscal year. Professional segment earnings margin was 19.4%, up from 18.0% last year. The increase was primarily driven by net price realization, productivity improvements, and cost savings measures, partially offset by higher material and manufacturing costs and inventory valuation adjustments.
Residential Segment
- Residential segment net sales for the fourth quarter were $147.2 million, down 5.1% from $155.1 million in the same period last year. The decrease was primarily driven by lower shipments of walk power mowers, partially offset by higher shipments of snow products and net price realization.
- Full-year fiscal 2025 residential segment net sales were $858.4 million, down 14.0% from $998.3 million last year. The decrease was primarily due to lower shipments broadly across the segment, as well as the prior year Pope divestiture.
- Residential segment loss for the fourth quarter was $1.2 million, compared to a loss of $13.8 million in the same period last year. The change was primarily driven by cost savings measures, productivity improvements, and net price realization, partially offset by inventory valuation adjustments, higher material costs, and lower net sales volume.
- Full-year fiscal 2025 residential segment earnings were $35.8 million, down 54.3% from $78.4 million in the prior fiscal year. Residential segment earnings margin was 4.2%, compared to 7.9% last year. The decrease was primarily driven by lower net sales volume, higher material and manufacturing costs, and inventory valuation adjustments, partially offset by productivity improvements and cost savings measures.
View Full Fiscal 2025 Financial Report
