The Toro Company Reports Fiscal 2025 Third Quarter Results

The Toro Company, a leading global provider of solutions for the outdoor environment, has released its financial results for the third quarter of fiscal 2025, ending August 1, 2025. The company reported a mixed performance with notable strengths in its Professional segment, despite challenges in the Residential segment.

Financial Highlights

For the third quarter of fiscal 2025, The Toro Company reported net sales of $1.13 billion, a 2% decrease from the same period in fiscal 2024. The decline was partly due to the divestiture of non-core assets in the prior year. Reported diluted earnings per share (EPS) were $0.54, which included a non-cash impairment charge of ($0.62) per diluted share, or ($81) million pretax. Adjusted diluted EPS, however, increased by 5% year-over-year to $1.24, driven by improved profitability in the Professional segment.

Business and Operational Highlights

The Professional segment was a significant contributor to the company's performance, with net sales increasing by 5.7% to $930.8 million. This growth was primarily driven by higher shipments of underground construction and golf and grounds products. In contrast, the Residential segment saw a 27.9% decline in net sales to $192.8 million, attributed to lower demand from homeowners.

Strategic Initiatives and Corporate Developments

The company highlighted its "Amplifying Maximum Productivity" (AMP) program, which is on track to deliver run rate savings of at least $100 million by 2027. The AMP program has already achieved $75 million in annualized savings. Additionally, the company continued to drive improvement in free cash flow through favorable working capital management.

Management's Perspective

Richard M. Olson, chairman and chief executive officer, commented on the results, stating, "We delivered third quarter adjusted earnings that exceeded our expectations, with our Professional segment achieving 6 percent growth and 250 basis points of margin expansion. Strong momentum in underground construction and golf and grounds, coupled with savings from our AMP productivity program, enabled us to exceed adjusted earnings expectations despite headwinds in our Residential segment."

Future Outlook

Looking ahead, The Toro Company expects total company net sales and adjusted diluted earnings per share for fiscal 2025 to be at the lower end of prior guidance ranges. The company anticipates net sales to be flat to down 3% and adjusted diluted EPS to be around $4.15. This guidance reflects anticipated tariff impacts, reduced volume from macroeconomic factors, and continued strong demand in the Professional segment.

SEC Filing: TORO CO [ TTC ] - 8-K - Sep. 04, 2025