Exceeding Earnings Expectations
The Toro Company delivered fourth-quarter sales and adjusted EPS that exceeded expectations. Adjusted diluted earnings per share for the fourth quarter were $0.91, reflecting year-over-year earnings improvement in both segments.
Record Free Cash Flow
The company generated a record free cash flow of $578 million, with a conversion rate of 146%. This was a significant achievement driven by improvements in working capital.
Professional Segment Growth
Professional segment earnings margin grew to 19.2% in the fourth quarter, driven by underground construction business and snow and ice management growth. Full-year Professional segment earnings were $702.5 million, and earnings margin was 19.4%, up from 18% in fiscal 2024.
Successful AMP Program
The AMP savings target increased to $125 million by 2026, up from an original target of at least $100 million. Actions driving savings include facility closures and workforce reductions.
Strategic Acquisition
The acquisition of Tornado Infrastructure Equipment, a leading manufacturer of vacuum excavation and industrial equipment, was completed, expanding geographic presence and product portfolio.