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The Toro Company (TTC)
NYSE:TTC
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The Toro Company
(NYSE:TTC)
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Rating:76Outperform
Price Target:
$112.00
▲(17.89% Upside)
Action:ReiteratedDate:03/06/26
The score is supported primarily by strong financial health (cash generation and low leverage) and a positive earnings outlook with raised guidance and ongoing productivity savings. This is tempered by a relatively high valuation and only moderately positive technical momentum.
Positive Factors
Free cash flow generation
Toro’s trailing‑twelve‑month free cash flow is a structural strength: FCF rose meaningfully versus the prior annual period and equates to ~90% of net income. Persistent cash conversion supports capex, dividend and buyback capacity and funds M&A without stressing liquidity.
Conservative balance sheet
The balance sheet is materially de‑risked with very low leverage versus prior years and strong shareholder equity. This improves refinancing flexibility, lowers interest exposure and preserves capacity for strategic investments and opportunistic M&A over a multi‑quarter horizon.
Strategic M&A and product breadth
The Tornado acquisition and recent product launches broaden Toro’s portfolio into hydrovac and specialized infrastructure equipment, adding ~2% inorganic growth and targeted synergies. This strengthens market position in growing infrastructure end markets long term.
Negative Factors
Mature revenue profile
Revenue growth is showing a mature profile with flat trailing revenues and only modest guidance uplift. Combined with compressed margins versus prior peaks, this suggests limited organic growth runway and greater reliance on efficiency, price or M&A to drive EPS.
Input cost pressure
Sustained material, manufacturing and tariff cost pressure is a structural margin risk. Management depends on AMP productivity and price realization to offset these inputs; if inflation persists or pricing power weakens, long‑term margin recovery could be constrained.
Geographic and seasonal variability
Significant geographic and seasonal demand swings—international softness and a variable residential business—create recurring revenue volatility. This limits predictability of earnings and cash flow across quarters and makes sustained top‑line expansion harder to achieve.
The Toro Company (TTC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.21B
Dividend Yield1.95%
Average Volume (3M)837.66K
Price to Earnings (P/E)33.0
Beta (1Y)1.06
Revenue Growth-1.53%
EPS Growth-21.19%
CountryUS
Employees11,108
SectorIndustrials
Sector Strength72
IndustryManufacturing - Tools & Accessories
Share Statistics
EPS (TTM)0.74
Shares Outstanding96,932,940
10 Day Avg. Volume892,017
30 Day Avg. Volume837,656
Financial Highlights & Ratios
PEG Ratio-1.11
Price to Book (P/B)5.12
Price to Sales (P/S)1.65
P/FCF Ratio12.86
Enterprise Value/Market Cap1.00
Enterprise Value/Revenue2.03
Enterprise Value/Gross Profit6.12
Enterprise Value/Ebitda15.79
Forecast
1Y Price Target
$102.50Price Target Upside7.89% Upside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)4.59
Revenue Forecast (FY)$4.72B
The Toro Company Business Overview & Revenue Model
Company DescriptionThe Toro Company engages in the designing, manufacturing, marketing, and selling professional and residential equipment worldwide. The company's Professional segment offers turf and landscape equipment products, including sports fields and grounds mowing and maintenance equipment, golf course mowing and maintenance equipment, landscape contractor mowing equipment, landscape creation and renovation equipment, and other maintenance equipment; rental, specialty, and underground construction equipment; and snow and ice management equipment, such as snowplows, brush, snow thrower attachment, salt and sand spreaders, and related parts and accessories for light and medium duty trucks, utility task vehicles, skid steers, and front-end loaders. It also provides irrigation and lighting products that consist of sprinkler heads, electric and hydraulic valves, controllers, computer irrigation central control systems, coupling systems, and ag-irrigation drip tape and hose products, as well as professionally installed landscape lighting products offered through distributors and landscape contractors. This segment sells its products primarily through a network of distributors and dealers to professional users engaged in maintaining golf courses, sports fields, municipal properties, agricultural fields, residential and commercial landscapes, and removing snow and ice, as well as directly to government customers, rental companies, and retailers. Its Residential segment provides walk power mowers, zero-turn riding mowers, snow throwers, replacement parts, and home solution products that include grass and hedge trimmers, leaf blowers, blower-vacuums, chainsaws, string trimmers, hoses, and hose-end retail irrigation products. This segment sells its products to homeowners through a network of distributors and dealers; and home centers, hardware retailers, and mass retailers, as well as online. The Toro Company was founded in 1914 and is headquartered in Bloomington, Minnesota.
How the Company Makes MoneyThe Toro Company generates revenue primarily through the sale of its wide range of outdoor equipment and services. Key revenue streams include residential and commercial equipment sales, irrigation systems, and snow removal products. The company also earns income from parts and accessories, which contribute to ongoing maintenance and support for their products. Toro has established significant partnerships with distributors, dealers, and retailers, enhancing its market reach and sales capabilities. Seasonal demand for snow removal equipment and summer lawn care products further influences revenue, with peak sales periods aligning with regional weather conditions. Additionally, Toro invests in research and development to innovate and expand its product offerings, which drives customer loyalty and repeat business.
The Toro Company Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Tracks profit after operating costs for each segment, revealing where the company is most efficient and where margins are under pressure. Helps investors see whether revenue growth is translating into real earnings and where cost or pricing issues could affect profitability.
Tracks profit after operating costs for each segment, revealing where the company is most efficient and where margins are under pressure. Helps investors see whether revenue growth is translating into real earnings and where cost or pricing issues could affect profitability.
Data provided by:
The Fly
The FlyThe Toro Company Earnings Call Summary
Earnings Call Date:Mar 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jun 04, 2026
Earnings Call Sentiment Positive
The call was broadly positive: Toro delivered revenue and EPS beats, improved margins, meaningful AMP savings ($95M toward a $125M goal), stronger free cash flow and inventory metrics, executed a strategic acquisition (Tornado), launched new products, and raised full-year sales and EPS guidance. Offsets include ongoing material/manufacturing cost pressure, some international softness, residential variability, and high M&A valuations. On balance, the operational beats, cash generation, cost-savings progress, and upgraded guidance outweigh the manageable headwinds.Q1-2026 Updates
Positive Updates
Consolidated Revenue Growth
Consolidated net sales of $1.04 billion, up 4.2% year-over-year, driven by stronger-than-expected demand across Professional and Residential segments.
Earnings Beat and EPS Improvement
Adjusted EPS of $0.74, up from $0.65 a year ago (approximately +13.8%), beating prior-year results and analyst expectations for the quarter.
Strong Professional Segment Performance
Professional segment net sales of $824 million; Pro sales were up ~7% in the quarter, with an estimated ~1–2 percentage points of that from the Tornado acquisition and the balance organic growth driven by snow/ice and underground construction.
Segment Profitability and Margin Expansion
Consolidated adjusted operating earnings margin improved to 9.8% from 9.4% a year ago (+0.4 percentage points). Professional segment earnings were $137.6 million and Residential segment earnings were $13.2 million, both above expectations.
AMP Program and Cost Savings
AMP productivity program has contributed $95 million of cost savings toward a $125 million aggregate target (≈76% of target), helping offset material/manufacturing cost pressure and tariffs.
Cash Generation, Inventory and Capital Returns
Free cash flow of $14.6 million in Q1, a year-over-year increase of more than $80 million, with a Q1 free cash flow conversion of 22%. Inventory turnover improved to 2.8x. Returned $133 million to shareholders in the quarter via dividends and share repurchases (Rick noted ~$95 million in repurchases).
Strategic M&A and Product Innovation
Acquisition of Tornado Infrastructure Equipment expanded hydrovac excavation capabilities; new and recent product launches (BOSS plows with Cold Front Technology, JT21 horizontal directional drill, Ditch Witch SK 1,000) are contributing to demand and product portfolio expansion.
Raised Full-Year Guidance
Raised fiscal 2026 net sales growth outlook to 3%–6.5% and increased adjusted EPS guidance to $4.40–$4.60. Professional full-year earnings margin now expected between 18.5%–19.5%, Residential margin outlook improved to 6.5%–8.5%. Full-year free cash flow conversion now expected at least 120%.
Healthy Balance Sheet and Capital Flexibility
Leverage ratio of 1.5x (within target range) and $90–$100 million planned capex for the year, supporting strategic optionality for investment and M&A discipline.
Negative Updates
Cost Pressure from Materials and Manufacturing
Higher material and manufacturing costs (and tariffs) remain a headwind; management is relying on AMP productivity gains and net price realization to moderate and offset these pressures.
International Softness
Noted weakness internationally across Europe and Asia in multiple categories during Q1, which partially offset domestic strength and influenced more conservative Professional guidance adjustments.
Residential Segment Relative Performance
Residential net sales of $216 million and residential operating earnings of $13.2 million remain much smaller than Professional; full-year Residential net sales guidance is still only flat to down ~3% (though Q1 outperformed), indicating ongoing variability in that end market.
M&A Valuation Environment
Management acknowledged that valuations for acquisitions remain high (though may be moderating), which could limit ability to expand via M&A at attractive prices in the near term.
Regional Weather Variability Risk
Geographic variability in snowfall (notably low snow in parts of the West) creates uneven demand patterns that could temper spring and regional performance despite strong East Coast winter demand.
Seasonality and Channel/Inventory Nuances
While overall field inventory is healthy, management highlighted normal differences by business and channel timing (spring product shipments rolling into Q2), introducing timing risk and potential quarterly volatility.
Company Guidance
Management raised its fiscal 2026 outlook to total company net sales growth of 3.0%–6.5% (Professional net sales mid‑single digits; Residential flat to down 3%), and now expects full‑year adjusted EPS of $4.40–$4.60, with Professional adjusted operating margin of 18.5%–19.5% and Residential margin of 6.5%–8.5%; assumptions include a slightly higher-than‑historic 1%–2% net realized price, higher adjusted gross and operating margins, interest expense of ~$60M, an adjusted effective tax rate of ~21%, capex of $90M–$100M, Tornado contributing about 2% inorganic growth (roughly $100M of sales annually), and an improved free cash‑flow conversion rate of at least 120%. For Q2 they expect mid‑single‑digit total company net sales growth (mid‑single digits in both segments), Professional margin similar to last year, Residential margin approaching double digits, and mid‑single‑digit adjusted EPS growth.The Toro Company Financial Statement Overview
Summary
Strong overall fundamentals driven by excellent free cash flow and a strengthened, low-leverage balance sheet. Profitability remains solid, but revenue is largely flat and margins have compressed versus prior peaks, indicating a more mature growth profile.Income Statement
TTM (Trailing-Twelve-Months) revenue is essentially flat versus the last few annual periods, and the latest annual report showed a slight revenue decline. Profitability remains solid (TTM gross margin ~33% and net margin ~7%), but margins have compressed from the stronger 2021–2022 level, with EBIT margin down notably versus prior peaks. Net income is stable-to-slightly higher in TTM versus the most recent annual period, but overall earnings power looks more mature than accelerating.72
Positive
Balance Sheet
The balance sheet looks conservative in TTM (Trailing-Twelve-Months) with very low leverage (debt-to-equity ~0.08) and a sizable equity base. While leverage was meaningfully higher in prior annual periods (roughly ~0.66–0.79 debt-to-equity), the current profile suggests materially improved financial flexibility and lower refinancing risk. Returns on shareholder capital remain strong (TTM return on equity ~23%), though down from the exceptionally high levels seen in 2021–2022.83
Very Positive
Cash Flow
Cash generation is a key strength: TTM (Trailing-Twelve-Months) operating cash flow and free cash flow are high, with free cash flow rising strongly versus the last annual period. Free cash flow is also well-supported by earnings (free cash flow is ~90% of net income in TTM), indicating good cash conversion. The main watch-out is that cash flow coverage has historically been volatile and remains below 1 in TTM, though it has improved substantially from the weaker 2022–2023 period.86
Very Positive
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.55B | 4.51B | 4.58B | 4.55B | 4.51B | 3.96B |
| Gross Profit | 1.51B | 1.50B | 1.55B | 1.58B | 1.50B | 1.34B |
| EBITDA | 584.00M | 552.80M | 702.90M | 578.40M | 697.00M | 627.80M |
| Net Income | 331.20M | 316.10M | 418.90M | 329.70M | 443.30M | 409.90M |
Balance Sheet | ||||||
| Total Assets | 3.70B | 3.44B | 3.58B | 3.64B | 3.56B | 2.94B |
| Cash, Cash Equivalents and Short-Term Investments | 189.00M | 341.00M | 199.50M | 193.10M | 188.25M | 405.61M |
| Total Debt | 112.10M | 1.02B | 1.04B | 1.16B | 1.07B | 761.28M |
| Total Liabilities | 2.28B | 1.99B | 2.03B | 2.13B | 2.20B | 1.79B |
| Stockholders Equity | 1.42B | 1.45B | 1.55B | 1.51B | 1.35B | 1.15B |
Cash Flow | ||||||
| Free Cash Flow | 660.60M | 578.30M | 466.40M | 157.30M | 153.70M | 451.50M |
| Operating Cash Flow | 736.70M | 662.00M | 569.90M | 306.80M | 297.20M | 555.50M |
| Investing Cash Flow | -268.70M | -77.40M | -59.70M | -157.70M | -548.30M | -128.50M |
| Financing Cash Flow | -465.60M | -446.10M | -505.10M | -147.50M | 42.20M | -503.70M |
The Toro Company Technical Analysis
Positive
95.00
Price Trends
94.31
Positive
83.79
Positive
79.16
Positive
Market Momentum
0.45
Positive
42.91
Neutral
6.38
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TTC, the sentiment is Positive. The current price of 95 is below the 20-day moving average (MA) of 98.99, above the 50-day MA of 94.31, and above the 200-day MA of 79.16, indicating a neutral trend. The MACD of 0.45 indicates Positive momentum. The RSI at 42.91 is Neutral, neither overbought nor oversold. The STOCH value of 6.38 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TTC.
The Toro Company Risk Analysis
The Toro Company disclosed 35 risk factors in its most recent earnings report. The Toro Company reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
The Toro Company Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $17.29B | 53.36 | 8.53% | ― | 8.27% | 19.06% | |
78 Outperform | $19.19B | 17.98 | 17.70% | 2.52% | 0.24% | -1.85% | |
76 Outperform | $9.21B | 33.02 | 23.00% | 1.95% | -1.53% | -21.19% | |
72 Outperform | $14.21B | 25.51 | 37.15% | 1.22% | 3.27% | 10.89% | |
72 Outperform | $6.87B | 20.35 | 9.35% | 1.61% | -1.01% | -12.13% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $11.02B | 28.82 | 4.47% | 4.42% | -1.40% | ― |
* Industrials Sector Average
TTC
The Toro Company
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32.47%
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The Toro Company Corporate Events
M&A Transactions
The Toro Company Acquires Tornado Infrastructure Equipment
Neutral
Dec 9, 2025
On December 8, 2025, The Toro Company completed its acquisition of Tornado Infrastructure Equipment Ltd., a manufacturer of vacuum trucks and industrial equipment solutions based in Calgary, Alberta. This strategic acquisition, valued at CAD $279 million, enhances Toro’s market reach in the underground construction and energy markets, positioning it to capture a greater share of the rapidly growing infrastructure space. The acquisition is expected to be neutral to adjusted earnings per share in the first year and increasingly accretive thereafter, with anticipated cost synergies of $3 million USD over three years.
The most recent analyst rating on (TTC) stock is a Hold with a $81.00 price target. To see the full list of analyst forecasts on The Toro Company stock, see the TTC Stock Forecast page.
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.