Toromont Industries (TSE:TIH)
TSX:TIH
Top Page
Toromont Industries
(TSX:TIH)
Select Model
Select Model
Rating:73Outperform
Price Target:
C$228.00
▲(16.76% Upside)
Action:UpgradedDate:02/18/26
The score is led by strong fundamentals (growth, solid margins, conservative leverage) and a constructive earnings update (backlog/bookings strength, liquidity, and capital returns). This is tempered by premium valuation and overbought technical signals, plus cash-flow variability and some recent cost/margin pressure.
Positive Factors
Large, growing backlog/order intake
A materially larger backlog and sharply higher bookings provide durable near‑term revenue visibility and support equipment production and service cadence. With ~90% of Equipment Group backlog expected to ship within 12 months, the backlog underpins organic revenue growth and capacity planning into the next 12 months.
Negative Factors
Margin pressure and rising operating expenses
Operating cost growth and compression in rental and product support margins suggest pressure on core profitability. Margins peaked in 2022–2023; persistent SG&A and margin erosion would reduce operating leverage, slow ROE improvement toward targets, and constrain the free cash flow available for returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Large, growing backlog/order intake
A materially larger backlog and sharply higher bookings provide durable near‑term revenue visibility and support equipment production and service cadence. With ~90% of Equipment Group backlog expected to ship within 12 months, the backlog underpins organic revenue growth and capacity planning into the next 12 months.
Read all positive factors
Toromont Industries (TIH) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$16.36B
Dividend Yield1.25%
Average Volume (3M)166.28K
Price to Earnings (P/E)27.2
Beta (1Y)0.71
Revenue Growth2.97%
EPS Growth-0.80%
CountryCA
Employees7,300
SectorIndustrials
Sector Strength72
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)1.93
Shares Outstanding81,504,910
10 Day Avg. Volume127,018
30 Day Avg. Volume166,275
Financial Highlights & Ratios
PEG Ratio-23.99
Price to Book (P/B)4.10
Price to Sales (P/S)2.59
P/FCF Ratio26.26
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$209.67Price Target Upside7.37% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)7.08
Revenue Forecast (FY)C$5.61B
Toromont Industries Business Overview & Revenue Model
Company Description
Toromont Industries Ltd. provides specialized capital equipment in Canada, the United States, and internationally. It operates in two segments, Equipment Group and CIMCO. The Equipment Group segment engages in the sale, rental, and service of mobi...
How the Company Makes Money
Toromont Industries generates revenue through multiple key streams. The primary source of income comes from the sale of heavy equipment, particularly Caterpillar products, which are crucial for construction and mining activities. The company also ...
Toromont Industries Earnings Call Summary
Earnings Call Date:Feb 10, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Positive
The call presented a predominately positive operational and strategic picture: revenue growth, a markedly larger backlog, strong bookings, CIMCO outperformance, ample liquidity, share buybacks and a dividend increase. Headwinds include sizeable noncash AVL acquisition charges that depressed reported earnings, higher financing and operating expenses, some margin pressure (rental and product support), and notable Q4 booking weakness at CIMCO and volatility in mining revenue. On balance the positives (organic growth, backlog, liquidity, AVL production ramp and capital returns) outweigh the near-term accounting and expense-related negatives.Positive Updates
Consolidated Revenue Growth (Q4 & FY 2025)
Revenue of $97.7 million in Q4 2025 and $254.7 million for the full year 2025; consolidated revenue increased 9% in Q4 and 4% for the year versus 2024.
Negative Updates
Significant Noncash Charges from AVL Acquisition
Noncash acquisition-related expenses recognized were $33.4 million pretax in Q4 and $90.4 million pretax for the full year 2025 (largely amortization of acquired backlog and intangibles), reducing near-term reported earnings.
Read all updates
Q4-2025 Updates
Positive
Negative
Consolidated Revenue Growth (Q4 & FY 2025)
Revenue of $97.7 million in Q4 2025 and $254.7 million for the full year 2025; consolidated revenue increased 9% in Q4 and 4% for the year versus 2024.
Read all positive updates
Company Guidance
Management guided that AVL production will continue to ramp through 2026 (Charlotte phase 1 began in Q3 2025) with most purchase‑price amortization related to acquired backlog completing in H1 2026 and AVL dividends expected to begin in 2026 (sized from 2025 earnings before amortization and AVL cash needs); consolidated Q4 bookings rose 47% (Equipment Group +71%, Power Systems +195%, mining +324%, CIMCO -45%), consolidated backlog is $1.5B (Equipment Group $1.2B incl. ~$428M AVL, CIMCO $343M) with ~90% of Equipment and ~75% of CIMCO backlog expected to ship in the next 12 months, consolidated revenue was +9% in Q4 and +4% for the year (Equipment +9% Q / +3% Y, CIMCO +10% Q / +14% Y; AVL revenue $97.7M Q4 / $254.7M FY), AVL non‑cash acquisition charges were $33.4M Q4 / $90.4M FY (pretax) with EPS impact ≈ -$0.01 Q4 / +$0.01 FY, and the company reiterated strong liquidity ($1.3B cash + $453M credit, net debt-to-capitalization -19%), improved working capital (noncash working capital down 11% YoY, DSO 39 days), rental trends (rental revenue +5% Q / +9% YTD, RPO fleet $92.5M), margin/earnings metrics (operating income ~13.1% YTD, ROE target 18% vs actual 16.9%, ROCE 23.4%), a $40.1M share buyback (337,500 shares) and a 7.7% dividend increase to $0.56 quarterly ($2.24 annual).Toromont Industries Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
86
Very Positive
Cash Flow
72
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.20B | 5.02B | 4.62B | 4.12B | 3.89B |
| Gross Profit | 1.32B | 1.26B | 1.24B | 1.12B | 969.77M |
| EBITDA | 1.03B | 864.02M | 876.31M | 772.03M | 627.66M |
| Net Income | 496.59M | 506.52M | 534.71M | 454.20M | 332.71M |
Balance Sheet | |||||
| Total Assets | 5.47B | 4.87B | 4.57B | 4.18B | 3.58B |
| Cash, Cash Equivalents and Short-Term Investments | 1.33B | 890.82M | 1.04B | 927.78M | 916.83M |
| Total Debt | 851.12M | 689.72M | 682.06M | 670.92M | 665.92M |
| Total Liabilities | 2.18B | 1.91B | 1.89B | 1.86B | 1.63B |
| Stockholders Equity | 3.29B | 2.96B | 2.68B | 2.33B | 1.95B |
Cash Flow | |||||
| Free Cash Flow | 513.96M | 162.19M | 180.62M | 114.19M | 420.68M |
| Operating Cash Flow | 742.12M | 508.10M | 526.99M | 388.17M | 610.07M |
| Investing Cash Flow | -258.86M | -355.78M | -249.31M | -215.55M | -136.21M |
| Financing Cash Flow | -47.29M | -303.44M | -164.49M | -162.16M | -148.14M |
Toromont Industries Technical Analysis
Positive
195.27
Price Trends
194.80
Positive
180.31
Positive
161.79
Positive
Market Momentum
-0.05
Negative
57.61
Neutral
70.39
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TIH, the sentiment is Positive. The current price of 195.27 is below the 20-day moving average (MA) of 195.75, above the 50-day MA of 194.80, and above the 200-day MA of 161.79, indicating a bullish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 57.61 is Neutral, neither overbought nor oversold. The STOCH value of 70.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:TIH.
Toromont Industries Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | C$16.36B | 27.18 | 15.97% | 1.25% | 2.97% | -0.80% | |
68 Neutral | C$11.20B | 19.57 | 24.05% | 1.58% | 1.32% | 24.27% | |
66 Neutral | C$691.94M | 10.32 | 10.91% | 5.09% | 3.71% | -12.70% | |
66 Neutral | C$2.65B | 14.57 | 10.04% | 3.88% | 8.15% | -3.57% | |
65 Neutral | C$2.04B | 41.05 | 25.34% | 0.99% | 13.02% | 52.88% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | C$3.86B | 30.95 | 1.09% | ― | -5.59% | -104.09% |
* Industrials Sector Average
TSE:TIH
Toromont Industries
200.73
92.55
85.55%
TSE:BDGI
Badger Infrastructure Solutions
60.35
25.98
75.56%
TSE:ATS
ATS Corporation
39.35
9.25
30.73%
TSE:FTT
Finning International
85.58
49.85
139.53%
TSE:WJX
Wajax Corporation
31.67
16.73
112.00%
TSE:RUS
Russel Metals
48.20
13.98
40.86%
Toromont Industries Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Toromont posts higher 2025 revenue, lifts dividend as margins hold firm
Positive
Feb 10, 2026
Toromont Industries reported fourth-quarter 2025 revenue of $1.42 billion, up 9% year over year, and full-year revenue of $5.2 billion, a 4% increase, driven by growth in both the Equipment Group and CIMCO. Earnings were relatively flat, with quar...
Financial Disclosures
Toromont Sets February 10 Date to Release 2025 Full-Year Results
Neutral
Jan 28, 2026
Toromont Industries will release its 2025 fourth-quarter and full-year financial results after markets close on February 10, 2026, and will hold an analyst and media call and webcast the following morning to review the numbers and discuss operatin...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.