Toromont Industries (TSE:TIH)
TSX:TIH
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Toromont Industries
(TSX:TIH)
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Rating:74Outperform
Price Target:
C$236.00
▲(11.90% Upside)
Action:Reiterated
Date:04/30/26
The score is driven primarily by solid financial quality (strong margins and conservative balance sheet) and a positive technical trend (price above major moving averages). This is partially offset by weaker valuation (P/E ~27 and ~1% yield) and some earnings-call risks around expense/margin pressure and uneven segment bookings despite a strong backlog outlook.
Positive Factors
Conservative balance sheet & liquidity
Strong liquidity and low leverage provide durable financial flexibility to fund capital expenditures, support the AVL production ramp, make disciplined acquisitions, and sustain capital returns. This structural strength reduces refinancing and solvency risk across economic cycles.
Negative Factors
Variable free cash flow conversion
Inconsistent FCF conversion limits predictability of dividends, buybacks and reinvestment despite strong operating cash in the latest period. Structural variability in working capital and project timing can constrain sustained capital returns and opportunistic M&A funding.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet & liquidity
Strong liquidity and low leverage provide durable financial flexibility to fund capital expenditures, support the AVL production ramp, make disciplined acquisitions, and sustain capital returns. This structural strength reduces refinancing and solvency risk across economic cycles.
Read all positive factors
Toromont Industries (TIH) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$18.25B
Dividend Yield1.25%
Average Volume (3M)166.28K
Price to Earnings (P/E)42.8
Beta (1Y)0.68
Revenue Growth4.85%
EPS Growth4.18%
CountryCA
Employees7,300
SectorIndustrials
Sector Strength72
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)6.33
Shares Outstanding81,533,490
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$224.00Price Target Upside6.21% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)7.12
Revenue Forecast (FY)C$5.72B
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 makes money through two main operating segments with multiple recurring revenue streams.
1) Equipment Group (dealership and aftermarket):
- New equipment sales: Revenue is generated from selling heavy equipment to customers (e.g., contra...
Toromont Industries Earnings Call Summary
Earnings Call Date:Feb 10, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 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
78
Positive
Balance Sheet
82
Very Positive
Cash Flow
64
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.34B | 5.20B | 5.02B | 4.62B | 4.12B | 3.89B |
| Gross Profit | 1.39B | 1.32B | 1.26B | 1.24B | 1.12B | 969.77M |
| EBITDA | 1.06B | 1.03B | 864.02M | 876.31M | 772.03M | 627.66M |
| Net Income | 514.85M | 496.59M | 506.52M | 534.71M | 454.20M | 332.71M |
Balance Sheet | ||||||
| Total Assets | 5.44B | 5.47B | 4.87B | 4.57B | 4.18B | 3.58B |
| Cash, Cash Equivalents and Short-Term Investments | 1.16B | 1.33B | 890.82M | 1.04B | 927.78M | 916.83M |
| Total Debt | 845.28M | 851.12M | 689.72M | 682.06M | 670.92M | 665.92M |
| Total Liabilities | 2.09B | 2.18B | 1.91B | 1.89B | 1.86B | 1.63B |
| Stockholders Equity | 3.36B | 3.29B | 2.96B | 2.68B | 2.33B | 1.95B |
Cash Flow | ||||||
| Free Cash Flow | 437.25M | 513.96M | 162.19M | 180.62M | 114.19M | 420.68M |
| Operating Cash Flow | 836.68M | 742.12M | 508.10M | 526.99M | 388.17M | 610.07M |
| Investing Cash Flow | -344.80M | -258.86M | -355.78M | -249.31M | -215.55M | -136.21M |
| Financing Cash Flow | -320.89M | -47.29M | -303.44M | -164.49M | -162.16M | -148.14M |
Toromont Industries Technical Analysis
Positive
210.90
Price Trends
206.35
Positive
195.37
Positive
174.58
Positive
Market Momentum
4.59
Negative
58.42
Neutral
73.80
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 210.9 is below the 20-day moving average (MA) of 215.63, above the 50-day MA of 206.35, and above the 200-day MA of 174.58, indicating a bullish trend. The MACD of 4.59 indicates Negative momentum. The RSI at 58.42 is Neutral, neither overbought nor oversold. The STOCH value of 73.80 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | C$3.20B | 9.20 | 12.22% | 3.88% | 11.72% | 33.83% | |
74 Outperform | C$18.25B | 42.80 | 16.06% | 1.25% | 4.85% | 4.18% | |
71 Outperform | C$2.82B | 606.91 | 23.71% | 0.99% | 13.42% | 17.76% | |
68 Neutral | C$13.35B | 23.26 | 24.05% | 1.58% | -6.98% | 11.17% | |
65 Neutral | C$623.12M | 9.90 | 11.63% | 5.09% | -3.59% | 50.73% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | C$4.33B | 30.95 | 1.09% | ― | 1.80% | -79.55% |
* Industrials Sector Average
TSE:TIH
Toromont Industries
219.92
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92.70%
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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...
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.