I last covered The Toro Company (NYSE: TTC ) about 13 months ago when the stock was trading for $84 per share and appeared undervalued by quite a bit. The company did offer an excellent forwardI have a masters degree in Analytics from Northwestern University and a bachelors degree in Accounting. I have worked in the investment arena for over 10 years starting as an analyst and working my way up to a management role. Dividend investing is a personal hobby and I look forward to sharing my thoughts with the Se ...

I last covered The Toro Company (NYSE: TTC ) about 13 months ago when the stock was trading for $84 per share and appeared undervalued by quite a bit. The company did offer an excellent forwardI have a masters degree in Analytics from Northwestern University and a bachelors degree in Accounting. I have worked in the investment arena for over 10 years starting as an analyst and working my way up to a management role. Dividend investing is a personal hobby and I look forward to sharing my thoughts with the Se ...

BLOOMINGTON, Minn.--(BUSINESS WIRE)--The Toro Company Names Heather Hille Vice President of Corporate Affairs and Investor Relations. ...

BLOOMINGTON, Minn.--(BUSINESS WIRE)--The Toro Company Names Grant Young Group Vice President of Golf, Grounds and Irrigation. ...

LRT Capital Management, an investment management company, released its “LRT Global Opportunities Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The strategy leverages a systematic long/short approach to generate positive returns while effectively controlling downside risks and maintaining low net exposure to the equity markets. In September, the strategy returned -8.00% (net), and the YTD return was -0.17%.  It was a challenging month for the strategy, as the mark ...

Group 1: Fund Performance - Mairs & Power Balanced Fund returned 2.66% in the first half of 2025, underperforming benchmark composite indexes which were up 5.43% and the Morningstar Moderate Allocation peer group which rose 5.67% [1] - The quarter began with significant challenges including tariff uncertainty, conflicts in the Middle East, and rising national debt, but the dollar rebounded to rise 25% by the end of the quarter [1] Group 2: The Toro Company (NYSE:TTC) - The Toro Company reported a one-month return of -6.58% and a 52-week loss of 10.23%, with a market capitalization of $7.546 billion as of September 23, 2025 [2] - The Fund's overweight position in the Industrials sector initially aided results, but poor selection within the sector, particularly with The Toro Company, led to a negative overall impact for the Fund due to slowing revenue growth and lowered guidance [3] - The Toro Company was held by 36 hedge fund portfolios at the end of the second quarter, a slight decrease from 37 in the previous quarter, indicating a potential decline in popularity among hedge funds [4]

Core Viewpoint - The Toro Company has declared a regular quarterly cash dividend, indicating a commitment to returning value to shareholders through consistent dividend payments [1] Company Summary - The dividend amount declared is $0.10 per share, which reflects the company's ongoing financial health and stability [1] - This dividend will be payable on July 12, 2023, to shareholders of record as of June 28, 2023, demonstrating the company's adherence to a regular dividend schedule [1] Industry Context - The announcement of a cash dividend is a positive signal in the investment community, often viewed as a sign of a company's strong performance and confidence in future earnings [1]

Core Insights - Toro stock (TTC) is currently in Phase 18, the final stage of its 18-phase Adhishthana Cycle, and has been in a consolidation range for over 700 days, with this trend expected to persist through August 2026 [1][5]. Guna Triads Analysis - The Guna Triads, consisting of Phases 14, 15, and 16, are critical for determining whether Toro can achieve Nirvana in Phase 18. For Nirvana to be reached, these triads must exhibit Satoguna, indicating a sustainable bullish structure [2][4]. - Toro has shown no signs of bullishness during Phases 14 to 16, leading to structural weakness that prevents the stock from attempting to reach Nirvana in its current Phase 18 [4]. Investor Outlook - Given the weak Guna Triads, Toro is expected to remain range-bound until August 2026, when Phase 18 concludes. Traders may consider using range-bound credit spreads, although limited options liquidity may pose challenges [5]. - Long-term investors are advised to avoid Toro until the next Adhishthana cycle begins, which may present new investment opportunities [5].

Core Insights - Toro Company reported Q3 earnings with an EPS of $1.24, exceeding the estimated $1.22 and improving from $1.18 in the same quarter last year [1][5] - The company's revenue for the quarter was $1.13 billion, surpassing the estimated $1.05 billion but falling short of the previous year's $1.16 billion and the Zacks Consensus Estimate by 2.02% [2][5] - Toro has consistently exceeded consensus EPS estimates three times over the past four quarters, indicating strong earnings performance [2] Financial Metrics - Toro's price-to-earnings (P/E) ratio is approximately 20.17, reflecting market valuation of its earnings [3] - The price-to-sales ratio stands at about 1.75, indicating investor willingness to pay per dollar of sales [3] - The enterprise value to sales ratio is around 1.98, showing the company's total valuation relative to its sales [3] Financial Health - The debt-to-equity ratio is approximately 0.82, indicating a moderate level of debt compared to equity [4] - The current ratio of about 1.81 suggests Toro's ability to cover its short-term liabilities with its short-term assets [4] - An earnings yield of about 4.96% provides a comprehensive view of Toro's financial standing and investment potential [4]

[Cautionary Note Regarding Forward-Looking Statements](index=3&type=section&id=CAUTIONARY%20NOTE%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) The report contains forward-looking statements subject to risks and uncertainties that may cause actual results to differ - The report contains forward-looking statements based on current expectations, which involve risks and uncertainties that could cause actual results to differ materially. These statements are identified by words like 'expect,' 'outlook,' 'guidance,' and relate to future performance, operating results, liquidity, financial condition, and impacts of macroeconomic factors[8](index=8&type=chunk) - Key risk factors include adverse economic conditions (e.g., uncertainty, slow growth, inflation, high interest rates, reduced consumer spending), geopolitical conflicts, seasonality, weather conditions, supply chain disruptions, inventory management issues, acquisition risks, ability to innovate, changes in product/geographic mix, competition, operational disruptions, labor market challenges, changes in distribution channels, credit risks, international operation risks (e.g., foreign currency, sanctions), legal/regulatory compliance, intellectual property, information security, ability to achieve financial projections (including AMP initiative), accounting/tax changes, stock price volatility, and climate/environmental scrutiny[9](index=9&type=chunk)[12](index=12&type=chunk) [Part I. Financial Information](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents unaudited consolidated financial statements, including earnings, balance sheets, cash flows, and notes [Condensed Consolidated Statements of Earnings (Unaudited)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Earnings%20(Unaudited)) This section provides unaudited consolidated statements of earnings, detailing net sales, gross profit, and net earnings Condensed Consolidated Statements of Earnings (Unaudited) - Key Figures | Metric (Millions USD) | Three Months Ended Aug 1, 2025 | Three Months Ended Aug 2, 2024 | Nine Months Ended Aug 1, 2025 | Nine Months Ended Aug 2, 2024 | |:----------------------|:-------------------------------|:-------------------------------|:------------------------------|:------------------------------| | Net sales | $1,131.3 | $1,156.9 | $3,444.2 | $3,507.8 | | Cost of sales | $749.5 | $754.1 | $2,290.1 | $2,307.5 | | Gross profit | $381.8 | $402.8 | $1,154.1 | $1,200.3 | | Operating earnings | $64.8 | $148.1 | $317.4 | $424.3 | | Net earnings | $53.5 | $119.3 | $243.1 | $329.0 | | Basic EPS | $0.54 | $1.15 | $2.43 | $3.16 | | Diluted EPS | $0.54 | $1.14 | $2.42 | $3.14 | - Net sales decreased by **2.2%** for the three months ended August 1, 2025, and by **1.8%** for the nine months ended August 1, 2025, compared to the prior year periods[14](index=14&type=chunk) - Net earnings significantly decreased by **55.1%** for the three months ended August 1, 2025, and by **26.1%** for the nine months ended August 1, 2025, primarily due to an **$81.1 million** non-cash impairment charge[14](index=14&type=chunk) [Condensed Consolidated Statements of Comprehensive Income (Unaudited)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Unaudited)) This section presents unaudited consolidated statements of comprehensive income, including net earnings and other components Condensed Consolidated Statements of Comprehensive Income (Unaudited) - Key Figures | Metric (Millions USD) | Three Months Ended Aug 1, 2025 | Three Months Ended Aug 2, 2024 | Nine Months Ended Aug 1, 2025 | Nine Months Ended Aug 2, 2024 | |:----------------------|:-------------------------------|:-------------------------------|:------------------------------|:------------------------------| | Net earnings | $53.5 | $119.3 | $243.1 | $329.0 | | Other comprehensive income (loss), net of tax | | | | | | Foreign currency translation adjustments | $1.0 | $1.6 | $5.9 | $6.9 | | Derivative instruments, net of tax | $3.5 | $(8.7) | $2.6 | $(12.8) | | Total other comprehensive income (loss), net of tax | $4.5 | $(7.1) | $8.5 | $(5.9) | | Comprehensive income | $58.0 | $112.2 | $251.6 | $323.1 | - Comprehensive income decreased by **48.3%** for the three months ended August 1, 2025, and by **22.1%** for the nine months ended August 1, 2025, compared to the prior year periods[15](index=15&type=chunk) - Derivative instruments contributed positively to other comprehensive income in the current periods, reversing a loss from the prior year, indicating favorable hedging outcomes[15](index=15&type=chunk) [Condensed Consolidated Balance Sheets (Unaudited)](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20(Unaudited)) This section details unaudited consolidated balance sheets, outlining assets, liabilities, and stockholders' equity Condensed Consolidated Balance Sheets (Unaudited) - Key Figures | Metric (Millions USD) | Aug 1, 2025 | Aug 2, 2024 | Oct 31, 2024 | |:----------------------|:------------|:------------|:-------------| | Total current assets | $1,794.1 | $1,913.9 | $1,764.9 | | Total assets | $3,519.8 | $3,731.4 | $3,582.8 | | Total current liabilities | $955.9 | $984.4 | $976.0 | | Long-term debt, less current portion | $1,012.2 | $966.6 | $911.8 | | Total stockholders' equity | $1,411.1 | $1,636.4 | $1,551.9 | | Total liabilities and stockholders' equity | $3,519.8 | $3,731.4 | $3,582.8 | - Total assets decreased by **5.7%** from August 2, 2024, to August 1, 2025, primarily driven by reductions in current assets and other intangible assets[16](index=16&type=chunk) - Total stockholders' equity decreased by **13.8%** from August 2, 2024, to August 1, 2025, mainly due to lower retained earnings and common stock outstanding[16](index=16&type=chunk) [Condensed Consolidated Statements of Cash Flows (Unaudited)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) This section presents unaudited consolidated statements of cash flows, categorizing operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows (Unaudited) - Key Figures (Nine Months Ended) | Metric (Millions USD) | Aug 1, 2025 | Aug 2, 2024 | |:----------------------|:------------|:------------| | Net cash provided by operating activities | $348.9 | $329.8 | | Net cash used in investing activities | $(50.7) | $(43.4) | | Net cash used in financing activities | $(298.1) | $(260.5) | | Net increase in cash and cash equivalents | $1.5 | $28.0 | - Net cash provided by operating activities increased by **5.8%** for the nine months ended August 1, 2025, compared to the prior year, primarily due to favorable working capital variations[18](index=18&type=chunk) - Net cash used in financing activities increased by **14.4%** for the nine months ended August 1, 2025, driven by higher common stock repurchases, partially offset by increased borrowings[18](index=18&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity (Unaudited)](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity%20(Unaudited)) This section provides unaudited consolidated statements of stockholders' equity, detailing changes in common stock, retained earnings, and comprehensive loss Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - Key Figures (Nine Months Ended) | Metric (Millions USD) | Oct 31, 2024 | Aug 1, 2025 | |:----------------------|:-------------|:------------| | Common Stock | $101.5 | $97.9 | | Retained Earnings | $1,496.4 | $1,350.7 | | Accumulated Other Comprehensive Loss | $(46.0) | $(37.5) | | Total Stockholders' Equity | $1,551.9 | $1,411.1 | - Total stockholders' equity decreased from **$1,551.9 million** as of October 31, 2024, to **$1,411.1 million** as of August 1, 2025, primarily due to cash dividends paid (**$113.8 million**) and common stock repurchases (**$295.7 million**), partially offset by net earnings (**$243.1 million**)[20](index=20&type=chunk) [Notes to Condensed Consolidated Financial Statements (Unaudited)](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This section provides detailed notes explaining the basis of presentation, accounting policies, and specific financial line items [Note 1. Basis of Presentation](index=9&type=section&id=1%20Basis%20of%20Presentation) This note outlines the preparation basis for unaudited financial statements, including GAAP compliance and seasonality - The unaudited Condensed Consolidated Financial Statements are prepared in accordance with Form 10-Q instructions and U.S. GAAP, with all intercompany accounts and transactions eliminated[22](index=22&type=chunk) - Due to seasonality, operating results for the nine months ended August 1, 2025, cannot be annualized to predict full fiscal year 2025 results[23](index=23&type=chunk) - The company is evaluating the impact of several new FASB ASUs, including those related to credit losses (ASU 2025-05), expense disaggregation (ASU 2024-03), income tax disclosures (ASU 2023-09), and segment reporting (ASU 2023-07), which will become effective in fiscal years 2026, 2028, and 2025 respectively[27](index=27&type=chunk)[28](index=28&type=chunk)[29](index=29&type=chunk)[30](index=30&type=chunk) [Note 2. Acquisitions and Divestitures](index=10&type=section&id=2%20Acquisitions%20and%20Divestitures) This note details the company's immaterial acquisitions and divestitures, including technology assets and product lines - In Q2 fiscal 2025, the company acquired certain technology assets and a U.S. underground construction equipment distributor. The acquisition was immaterial, with no goodwill or indefinite-lived intangible assets recorded[33](index=33&type=chunk) - In Q3 fiscal 2025, the company divested assets related to the auger boring product line (American Augers brand) and the Trencor brand, both previously part of the Professional segment. Both divestitures were immaterial[35](index=35&type=chunk)[36](index=36&type=chunk) [Note 3. Segment Data](index=11&type=section&id=3%20Segment%20Data) This note provides financial data by reportable segment, Professional and Residential, and 'Other' activities - The company operates in two reportable segments: Professional and Residential, with 'Other' activities including a domestic distribution company and corporate functions[37](index=37&type=chunk) Segment Net Sales and Earnings Before Income Taxes (Millions USD) | Segment | Three Months Ended Aug 1, 2025 (Net Sales) | Three Months Ended Aug 2, 2024 (Net Sales) | Nine Months Ended Aug 1, 2025 (Net Sales) | Nine Months Ended Aug 2, 2024 (Net Sales) | |:--------------|:-------------------------------------------|:-------------------------------------------|:------------------------------------------|:------------------------------------------| | Professional | $930.8 | $880.9 | $2,713.7 | $2,643.0 | | Residential | $192.8 | $267.5 | $711.2 | $843.2 | | Other | $7.7 | $8.5 | $19.3 | $21.6 | | Total | $1,131.3 | $1,156.9 | $3,444.2 | $3,507.8 | | | Three Months Ended Aug 1, 2025 (Earnings) | Three Months Ended Aug 2, 2024 (Earnings) | Nine Months Ended Aug 1, 2025 (Earnings) | Nine Months Ended Aug 2, 2024 (Earnings) | | Professional | $198.5 | $165.7 | $527.8 | $469.2 | | Residential | $3.7 | $32.6 | $37.0 | $92.2 | | Other | $(144.4) | $(54.1) | $(272.2) | $(157.9) | | Total | $57.8 | $144.2 | $292.6 | $403.5 | - The 'Other' activities operating loss for the three and nine months ended August 1, 2025, includes an **$81.1 million** non-cash impairment charge related to the Spartan trade name[38](index=38&type=chunk)[39](index=39&type=chunk) [Note 4. Revenue](index=12&type=section&id=4%20Revenue) This note details net sales by product type and geographic market, and contract liabilities for deferred revenue Net Sales by Product Type and Geographic Market (Millions USD) | Category (3 Months Ended Aug 1, 2025) | Professional | Residential | Other | Total | |:--------------------------------------|:-------------|:------------|:------|:------| | Equipment | $815.7 | $192.6 | $6.3 | $1,014.6 | | Irrigation | $115.1 | $0.2 | $1.4 | $116.7 | | **Total Net Sales** | **$930.8** | **$192.8** | **$7.7** | **$1,131.3** | | United States | $755.2 | $169.2 | $7.7 | $932.1 | | International countries | $175.6 | $23.6 | — | $199.2 | | **Total Net Sales** | **$930.8** | **$192.8** | **$7.7** | **$1,131.3** | | Category (9 Months Ended Aug 1, 2025) | Professional | Residential | Other | Total | |:--------------------------------------|:-------------|:------------|:------|:------| | Equipment | $2,369.9 | $709.6 | $15.4 | $3,094.9 | | Irrigation | $343.8 | $1.6 | $3.9 | $349.3 | | **Total Net Sales** | **$2,713.7** | **$711.2** | **$19.3** | **$3,444.2** | | United States | $2,135.8 | $622.9 | $19.3 | $2,778.0 | | International countries | $577.9 | $88.3 | — | $666.2 | | **Total Net Sales** | **$2,713.7** | **$711.2** | **$19.3** | **$3,444.2** | - Contract liabilities for deferred revenue, primarily from extended warranty and service contracts, totaled **$31.9 million** as of August 1, 2025, up from **$29.6 million** as of October 31, 2024. The company expects to recognize **$2.7 million** of the October 31, 2024 balance in the remainder of fiscal 2025[42](index=42&type=chunk) [Note 5. Goodwill and Other Intangible Assets, Net](index=13&type=section&id=5%20Goodwill%20and%20Other%20Intangible%20Assets,%20Net) This note discusses goodwill and other intangible assets, including a trade name impairment charge and amortization estimates - During Q3 fiscal 2025, the company recorded an **$81.1 million** non-cash impairment charge for the indefinite-lived Spartan trade name intangible asset, fully impairing it, due to a decline in customer demand. This resulted in a **$19.7 million** income tax benefit[43](index=43&type=chunk)[44](index=44&type=chunk)[45](index=45&type=chunk)[46](index=46&type=chunk) Goodwill by Reportable Segment (Millions USD) | Segment | Oct 31, 2024 | Aug 1, 2025 | |:-------------|:-------------|:------------| | Professional | $440.4 | $440.8 | | Residential | $9.9 | $10.0 | | Other | — | — | | Total | $450.3 | $450.8 | Other Intangible Assets, Net (Millions USD) | Category | Aug 1, 2025 | Aug 2, 2024 | Oct 31, 2024 | |:--------------------------|:------------|:------------|:-------------| | Total finite-lived | $208.1 | $240.8 | $227.1 | | Indefinite-lived - trade names | $190.5 | $271.6 | $271.6 | | **Total other intangible assets, net** | **$398.6** | **$512.4** | **$498.7** | - Estimated amortization expense for finite-lived intangible assets for the remainder of fiscal 2025 is **$7.5 million**, with **$29.7 million** projected for fiscal 2026[48](index=48&type=chunk) [Note 6. Indebtedness](index=15&type=section&id=6%20Indebtedness) This note summarizes the company's indebtedness, including revolving credit, term loans, senior notes, and payment schedules Summary of Indebtedness (Millions USD) | Debt Type | Aug 1, 2025 | Aug 2, 2024 | Oct 31, 2024 | |:------------------------------|:------------|:------------|:-------------| | Revolving credit facility | $115.0 | — | — | | Term loans | $395.0 | $470.0 | $400.0 | | Senior notes/debentures | $424.3 | $424.2 | $424.2 | | Total long-term debt | $1,032.2 | $991.9 | $921.8 | | Less: current portion | $20.0 | $25.3 | $10.0 | | Long-term debt, less current portion | $1,012.2 | $966.6 | $911.8 | - Total long-term debt increased to **$1,032.2 million** as of August 1, 2025, from **$921.8 million** as of October 31, 2024[49](index=49&type=chunk) - Significant principal payments are due in fiscal 2027 (**$270.0 million**) and fiscal 2029 (**$395.0 million**)[49](index=49&type=chunk) [Note 7. Inventories, Net](index=15&type=section&id=7%20Inventories,%20Net) This note details inventory composition and valuation methods, including raw materials, finished goods, and LIFO adjustments Inventories, Net (Millions USD) | Category | Aug 1, 2025 | Aug 2, 2024 | Oct 31, 2024 | |:------------------------------|:------------|:------------|:-------------| | Raw materials and work in process | $377.4 | $395.2 | $384.8 | | Finished goods and service parts | $832.2 | $843.5 | $827.5 | | Total FIFO and average cost value | $1,209.6 | $1,238.7 | $1,212.3 | | Less: adjustment to LIFO value | $173.4 | $156.7 | $173.4 | | **Total inventories, net** | **$1,036.2**| **$1,082.0**| **$1,038.9** | - Total inventories, net decreased by **4.2%** from August 2, 2024, to August 1, 2025, primarily due to lower raw materials and work in process balances[51](index=51&type=chunk) - The company uses FIFO, average cost, and LIFO methods for inventory valuation and records adjustments for excess, slow-moving, and obsolete inventory[50](index=50&type=chunk) [Note 8. Property, Plant, and Equipment, Net](index=16&type=section&id=8%20Property,%20Plant,%20and%20Equipment,%20Net) This note outlines gross and net property, plant, and equipment values, accumulated depreciation, and depreciation methods Property, Plant, and Equipment, Net (Millions USD) | Category | Aug 1, 2025 | Aug 2, 2024 | Oct 31, 2024 | |:------------------------------|:------------|:------------|:-------------| | Property, plant, and equipment, gross | $1,621.6 | $1,598.8 | $1,577.0 | | Less: accumulated depreciation | $992.5 | $963.1 | $932.2 | | **Property, plant, and equipment, net** | **$629.1** | **$635.7** | **$644.8** | - Net property, plant, and equipment decreased by **1.0%** from August 2, 2024, to August 1, 2025, primarily due to increased accumulated depreciation[53](index=53&type=chunk) - Depreciation is generally accounted for using the straight-line method over estimated useful lives ranging from **2 to 40 years**[52](index=52&type=chunk) [Note 9. Product Warranty Guarantees](index=16&type=section&id=9%20Product%20Warranty%20Guarantees) This note details changes in accrued product warranties, including balances, new accruals, payments, and adjustments Changes in Accrued Warranties (Millions USD) | Metric | Three Months Ended Aug 1, 2025 | Three Months Ended Aug 2, 2024 | Nine Months Ended Aug 1, 2025 | Nine Months Ended Aug 2, 2024 | |:------------------------------|:-------------------------------|:-------------------------------|:------------------------------|:------------------------------| | Beginning balance | $155.8 | $151.4 | $150.2 | $143.9 | | Changes in accrual related to warranties issued during the period | $22.4 | $20.0 | $67.3 | $60.4 | | Payments made during the period | $(28.0) | $(23.9) | $(68.9) | $(64.0) | | Changes in accrual related to pre-existing warranties | $(0.4) | $0.2 | $1.2 | $7.4 | | **Ending balance** | **$149.8** | **$147.7** | **$149.8** | **$147.7** | - The ending balance of accrued warranties increased by **1.4%** from August 2, 2024, to August 1, 2025, for the nine-month period[56](index=56&type=chunk) - Warranty expense is recognized at the time of sale based on estimated future claims, historical costs, and sales trends, with periodic adjustments[55](index=55&type=chunk) [Note 10. Investment in Joint Venture](index=17&type=section&id=10%20Investment%20in%20Joint%20Venture) This note describes the company's equity investment in Red Iron Acceptance, LLC, a joint venture for customer inventory financing - The company holds a **45%** equity interest in Red Iron Acceptance, LLC, a joint venture with Huntington Distribution Finance, Inc., which provides customer inventory financing to distributors and dealers in the U.S[57](index=57&type=chunk)[58](index=58&type=chunk) Investment in Red Iron Joint Venture (Millions USD) | Metric | Aug 1, 2025 | Aug 2, 2024 | Oct 31, 2024 | |:----------------------------|:------------|:------------|:-------------| | Total investment in Red Iron | $41.3 | $46.4 | $49.2 | - The company's investment in Red Iron decreased by **11.0%** from August 2, 2024, to August 1, 2025[58](index=58&type=chunk) [Note 11. Stock-Based Compensation](index=17&type=section&id=11%20Stock-Based%20Compensation) This note details stock-based compensation costs for various award types and valuation assumptions for stock options Stock-Based Compensation Costs (Millions USD) | Award Type | Three Months Ended Aug 1, 2025 | Three Months Ended Aug 2, 2024 | Nine Months Ended Aug 1, 2025 | Nine Months Ended Aug 2, 2024 | |:----------------------------|:-------------------------------|:-------------------------------|:------------------------------|:------------------------------| | Stock option awards | $2.6 | $3.2 | $6.9 | $11.3 | | Performance share awards | $1.3 | $(1.0) | $3.0 | $1.6 | | Restricted stock unit awards | $1.6 | $2.0 | $4.7 | $6.0 | | Unrestricted common stock awards | — | — | $0.7 | $0.6 | | **Total compensation cost** | **$5.5** | **$4.2** | **$15.3** | **$19.5** | - Total stock-based compensation cost increased by **31.0%** for the three months ended August 1, 2025, but decreased by **21.6%** for the nine months ended August 1, 2025, compared to the prior year periods[59](index=59&type=chunk) Weighted-Average Valuation Assumptions for Stock Options | Metric | Fiscal 2025 (9 Months) | Fiscal 2024 (9 Months) | |:----------------------------|:-----------------------|:-----------------------| | Expected life of option (years) | 6.42 | 6.37 | | Expected stock price volatility | 28.08% | 26.76% | | Risk-free interest rate | 4.47% | 3.95% | | Expected dividend yield | 1.43% | 1.15% | | Per share weighted-average fair value at grant date | $25.52 | $30.39 | [Note 12. Stockholders' Equity](index=19&type=section&id=12%20Stockholders'%20Equity) This note details accumulated other comprehensive loss (AOCL) components, including foreign currency and derivative adjustments Components of Accumulated Other Comprehensive Loss (AOCL) (Millions USD) | Component | Aug 1, 2025 | Aug 2, 2024 | Oct 31, 2024 | |:------------------------------|:------------|:------------|:-------------| | Foreign currency translation adjustments | $28.0 | $34.8 | $33.9 | | Pension benefits | $4.3 | $4.3 | $4.3 | | Cash flow derivative instruments | $5.2 | $3.8 | $7.8 | | **Total accumulated other comprehensive loss** | **$37.5** | **$42.9** | **$46.0** | - Total accumulated other comprehensive loss decreased by **12.5%** from August 2, 2024, to August 1, 2025, primarily due to favorable changes in cash flow derivative instruments and foreign currency translation adjustments[66](index=66&type=chunk) [Note 13. Per Share Data](index=20&type=section&id=13%20Per%20Share%20Data) This note presents weighted-average shares outstanding for basic and diluted EPS, including anti-dilutive stock option exclusions Weighted-Average Number of Shares of Common Stock Outstanding (Millions) | Share Type (Millions) | Three Months Ended Aug 1, 2025 | Three Months Ended Aug 2, 2024 | Nine Months Ended Aug 1, 2025 | Nine Months Ended Aug 2, 2024 | |:----------------------|:-------------------------------|:-------------------------------|:------------------------------|:------------------------------| | Basic | 98.8 | 104.0 | 100.0 | 104.2 | | Diluted | 99.0 | 104.5 | 100.3 | 104.8 | - Diluted weighted-average shares outstanding decreased by **5.3%** for the three months and **4.3%** for the nine months ended August 1, 2025, compared to the prior year periods[67](index=67&type=chunk) - Stock option awards to purchase **2.5 million** shares (Q3 2025) and **2.1 million** shares (YTD 2025) were excluded from diluted EPS computation as they were anti-dilutive[67](index=67&type=chunk) [Note 14. Commitments and Contingencies](index=20&type=section&id=14%20Commitments%20and%20Contingencies) This note outlines inventory financing, contingent liabilities, supply chain finance, and ongoing litigation matters - The company has inventory financing arrangements with Red Iron, HCFC, and other third-party financial institutions for dealers and distributors[68](index=68&type=chunk) Receivables Financed and Outstanding (Millions USD) | Metric | Nine Months Ended Aug 1, 2025 | Nine Months Ended Aug 2, 2024 | |:--------------------------------------|:------------------------------|:------------------------------| | Net receivables financed (Red Iron) | $2,019.9 | $1,882.3 | | Net receivables financed (HCFC & others) | $505.7 | $442.0 | | Metric | Aug 1, 2025 | Aug 2, 2024 | Oct 31, 2024 | |:--------------------------------------|:------------|:------------|:-------------| | Net receivables outstanding (Red Iron) | $821.1 | $927.8 | $979.6 | | Net receivables outstanding (HCFC & others) | $272.1 | $228.5 | $272.2 | - The company is contingently liable to repurchase up to **$30.7 million** of inventory as of August 1, 2025, under inventory repurchase agreements with financing institutions, with immaterial amounts repurchased in the current nine-month period[72](index=72&type=chunk) - Outstanding payment obligations financed by participating suppliers through a third-party supply chain finance program were **$73.9 million** as of August 1, 2025, a significant decrease from **$315.3 million** on August 2, 2024[73](index=73&type=chunk) - The company is involved in various litigation matters in the ordinary course of business, including product liability, environmental, commercial, employment, and patent claims. Management believes the outcome of these matters will not materially affect the company's financial position or results[74](index=74&type=chunk)[75](index=75&type=chunk) [Note 15. Leases](index=22&type=section&id=15%20Leases) This note details lease expenses for operating, short-term, and variable leases, including terms and discount rates Lease Expense (Millions USD) | Lease Type | Three Months Ended Aug 1, 2025 | Three Months Ended Aug 2, 2024 | Nine Months Ended Aug 1, 2025 | Nine Months Ended Aug 2, 2024 | |:----------------------------|:-------------------------------|:-------------------------------|:------------------------------|:------------------------------| | Operating lease expense | $9.5 | $8.9 | $27.0 | $27.5 | | Short-term lease expense | $1.1 | $1.3 | $3.6 | $3.4 | | Variable lease expense | $0.7 | $0.1 | $1.4 | $0.2 | | **Total lease expense** | **$11.3** | **$10.3** | **$32.0** | **$31.1** | - Total lease expense increased by **9.7%** for the three months and **2.9%** for the nine months ended August 1, 2025, compared to the prior year periods, driven by higher variable lease expenses[80](index=80&type=chunk) - The weighted-average remaining lease term for operating leases is **8.7 years**, with a weighted-average discount rate of **5.09%** as of August 1, 2025[80](index=80&type=chunk) Present Value of Operating Lease Liabilities (Millions USD) | Metric | Aug 1, 2025 | |:--------------------------------------|:------------| | Total future minimum operating lease payments | $133.9 | | Less: imputed interest | $24.5 | | **Present value of operating lease liabilities** | **$109.4** | [Note 16. Derivative Instruments and Hedging Activities](index=23&type=section&id=16%20Derivative%20Instruments%20and%20Hedging%20Activities) This note describes the company's use of forward currency contracts to hedge foreign exchange risk and their fair value - The company uses forward currency contracts to hedge foreign currency exchange rate risk, primarily for the Euro, Australian dollar, Canadian dollar, British pound, Mexican peso, Japanese yen, Chinese renminbi, and Romanian new leu[82](index=82&type=chunk)[84](index=84&type=chunk) Fair Value of Derivative Instruments (Millions USD) | Category | Aug 1, 2025 | Aug 2, 2024 | Oct 31, 2024 | |:------------------------------|:------------|:------------|:-------------| | Total derivative assets | $3.5 | $2.1 | $2.2 | | Total derivative liabilities | $7.1 | $1.3 | $5.5 | - As of August 1, 2025, the notional amount of outstanding forward currency contracts designated as cash flow hedging instruments was **$356.8 million**[89](index=89&type=chunk) - The company expects to reclassify approximately **$5.4 million** of losses from Accumulated Other Comprehensive Loss (AOCL) to earnings within the next twelve months[93](index=93&type=chunk) [Note 17. Fair Value Measurements](index=27&type=section&id=17%20Fair%20Value%20Measurements) This note categorizes financial assets and liabilities by fair value levels, focusing on derivatives and long-term debt - The company categorizes financial assets and liabilities into Level 1, 2, or 3 based on valuation inputs. Derivative instruments (forward currency contracts) are measured at fair value on a recurring basis using Level 2 observable market data[98](index=98&type=chunk)[99](index=99&type=chunk)[100](index=100&type=chunk)[101](index=101&type=chunk) Fair Value Measurements of Financial Assets and Liabilities (Millions USD) | Category (Aug 1, 2025) | Fair Value | Level 1 | Level 2 | Level 3 | |:-----------------------|:-----------|:--------|:--------|:--------| | Assets: Forward currency contracts | $3.5 | — | $3.5 | — | | Liabilities: Forward currency contracts | $7.1 | — | $7.1 | — | - The carrying values of short-term financial instruments approximate their fair values. For fixed-rate long-term debt, the estimated gross fair value was **$527.9 million** compared to a gross carrying amount of **$524.3 million** as of August 1, 2025[104](index=104&type=chunk) [Note 18. Subsequent Events](index=29&type=section&id=18%20Subsequent%20Events) This note confirms no subsequent events require recognition or disclosure in the condensed consolidated financial statements - The company has evaluated all subsequent events and concluded that no events require recognition or disclosure in the Condensed Consolidated Financial Statements[105](index=105&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on financial condition, results of operations, liquidity, and future factors [Company Overview](index=30&type=section&id=Company%20Overview) This section provides an overview of the company's business, strategic priorities, and key initiatives, including AMP and impairment - The Toro Company designs, manufactures, markets, and sells professional turf maintenance, irrigation, landscaping, snow/ice management, agricultural irrigation, construction, and residential yard products globally through various channels[108](index=108&type=chunk)[109](index=109&type=chunk) - The company's strategic priorities include accelerating profitable growth, driving productivity and operational excellence, and empowering its people, with a focus on alternative power, smart connected, and autonomous solutions[108](index=108&type=chunk) - The AMP (Amplifying Maximum Productivity) initiative, launched in Q1 fiscal 2024, aims for over **$100 million** in annualized cost savings by fiscal 2027, with cumulative savings of **$50.6 million** and anticipated annualized savings of **$74.5 million** as of Q3 fiscal 2025[112](index=112&type=chunk) - An **$81.1 million** non-cash impairment charge was recorded in Q3 fiscal 2025 for the Spartan trade name, fully impairing the asset, due to lower customer demand[113](index=113&type=chunk) [Results of Operations](index=31&type=section&id=Results%20of%20Operations) This section analyzes consolidated financial performance, including net sales, gross margin, SG&A, tax rate, and inventory Consolidated Financial Performance (Millions USD, except EPS) | Metric | Three Months Ended Aug 1, 2025 | Three Months Ended Aug 2, 2024 | Nine Months Ended Aug 1, 2025 | Nine Months Ended Aug 2, 2024 | |:----------------------------|:-------------------------------|:-------------------------------|:------------------------------|:------------------------------| | Net sales | $1,131.3 | $1,156.9 | $3,444.2 | $3,507.8 | | Net earnings | $53.5 | $119.3 | $243.1 | $329.0 | | Diluted EPS | $0.54 | $1.14 | $2.42 | $3.14 | | Adjusted net earnings | $122.5 | $123.7 | $330.2 | $337.5 | | Adjusted diluted EPS | $1.24 | $1.18 | $3.29 | $3.22 | - Consolidated net sales decreased by **2.2%** for Q3 fiscal 2025 and **1.8%** for the nine months, primarily due to lower Residential segment shipments and prior year divestitures, partially offset by Professional segment growth and net price realization[115](index=115&type=chunk)[123](index=123&type=chunk) - Gross margin decreased by **110 basis points** to **33.7%** for Q3 fiscal 2025 and **70 basis points** to **33.5%** for the nine months, mainly due to lower net sales volume, higher material/manufacturing costs, and inventory valuation adjustments, partially offset by productivity and pricing[126](index=126&type=chunk)[127](index=127&type=chunk) - SG&A expense decreased by **7.4%** for Q3 fiscal 2025 and **2.6%** for the nine months, primarily due to cost savings measures and lower marketing costs[128](index=128&type=chunk) - The effective tax rate for Q3 fiscal 2025 was **7.4%**, down from **17.3%** in the prior year, mainly due to the non-cash impairment charge and a more favorable geographic mix of earnings[132](index=132&type=chunk) - Field inventory levels were higher at the end of Q3 fiscal 2025 compared to Q3 fiscal 2024, driven by increased underground construction products, partially offset by turf product destocking[121](index=121&type=chunk) - Order backlog decreased at the end of Q3 fiscal 2025 compared to Q4 fiscal 2024 due to improved manufacturing output and normalized order patterns, though demand for underground construction and golf/grounds products keeps backlog elevated[122](index=122&type=chunk) [Business Segments](index=34&type=section&id=Business%20Segments) This section details the financial performance of Professional and Residential segments, including net sales and earnings Segment Net Sales and Earnings (Millions USD) | Segment | Three Months Ended Aug 1, 2025 (Net Sales) | Three Months Ended Aug 2, 2024 (Net Sales) | Nine Months Ended Aug 1, 2025 (Net Sales) | Nine Months Ended Aug 2, 2024 (Net Sales) | |:--------------|:-------------------------------------------|:-------------------------------------------|:------------------------------------------|:------------------------------------------| | Professional | $930.8 (Up 5.7%) | $880.9 | $2,713.7 (Up 2.7%) | $2,643.0 | | Residential | $192.8 (Down 27.9%) | $267.5 | $711.2 (Down 15.7%) | $843.2 | | Other | $7.7 (Down 9.4%) | $8.5 | $19.3 (Down 10.6%) | $21.6 | | | Three Months Ended Aug 1, 2025 (Earnings) | Three Months Ended Aug 2, 2024 (Earnings) | Nine Months Ended Aug 1, 2025 (Earnings) | Nine Months Ended Aug 2, 2024 (Earnings) | | Professional | $198.5 (Up 19.8%) | $165.7 | $527.8 (Up 12.5%) | $469.2 | | Residential | $3.7 (Down 88.7%) | $32.6 | $37.0 (Down 59.9%) | $92.2 | | Other | $(144.4) (Down 166.9%) | $(54.1) | $(272.2) (Down 72.4%) | $(157.9) | - Professional segment net sales increased due to higher shipments of underground construction and golf and grounds products, and net price realization. Segment earnings margin increased to **21.3%** (Q3) and **19.4%** (YTD) due to productivity, pricing, and sales leverage[135](index=135&type=chunk)[136](index=136&type=chunk) - Residential segment net sales decreased significantly due to lower shipments broadly across the segment. Segment earnings margin decreased to **1.9%** (Q3) and **5.2%** (YTD) due to lower sales volume, higher costs, inventory adjustments, and increased sales promotions[137](index=137&type=chunk)[138](index=138&type=chunk) - Other activities' operating loss increased substantially due to the non-cash impairment charge and higher productivity initiative charges[140](index=140&type=chunk) [Financial Position](index=35&type=section&id=Financial%20Position) This section reviews working capital, cash flow, liquidity, indebtedness, cash dividends, and common stock repurchases - Working capital: Accounts receivable decreased by **11.2%**, inventory levels decreased by **4.2%**, and accounts payable decreased by **12.1%** as of Q3 fiscal 2025 compared to Q3 fiscal 2024[141](index=141&type=chunk) Cash Flow Summary (Nine Months Ended, Millions USD) | Cash Flow Activity | Aug 1, 2025 | Aug 2, 2024 | |:------------------------------|:------------|:------------| | Operating activities | $348.9 | $329.8 | | Investing activities | $(50.7) | $(43.4) | | Financing activities | $(298.1) | $(260.5) | - Liquidity: As of August 1, 2025, available liquidity was **$983.9 million**, comprising **$201.0 million** in cash and cash equivalents and **$782.9 million** available under the revolving credit facility[145](index=145&type=chunk) - Indebtedness: Total long-term debt (less current portion) increased to **$1,012.2 million** as of August 1, 2025, from **$966.6 million** in the prior year. The company is in compliance with debt covenants[146](index=146&type=chunk)[147](index=147&type=chunk) - Cash Dividends: The quarterly cash dividend increased by **5.6%** to **$0.38 per share** for Q3 fiscal 2025[148](index=148&type=chunk) - Common Stock Repurchases: The company repurchased **3,780,167 shares** for the first nine months of fiscal 2025, returning **$403.8 million** to shareholders (dividends + repurchases). **4,391,790 shares** remained available for repurchase[120](index=120&type=chunk)[149](index=149&type=chunk) [Non-GAAP Financial Measures](index=37&type=section&id=Non-GAAP%20Financial%20Measures) This section provides reconciliations of non-GAAP financial measures to GAAP, offering supplemental insights into core performance - Non-GAAP financial measures are provided to offer supplemental information on core operational performance and cash flows, excluding non-recurring or unpredictable charges like productivity initiatives and impairment charges[157](index=157&type=chunk) Reconciliation of Non-GAAP Financial Measures (Millions USD, except EPS) | Metric | Three Months Ended Aug 1, 2025 | Three Months Ended Aug 2, 2024 | Nine Months Ended Aug 1, 2025 | Nine Months Ended Aug 2, 2024 | |:----------------------------|:-------------------------------|:-------------------------------|:------------------------------|:------------------------------| | Adjusted gross profit | $389.0 | $409.7 | $1,168.8 | $1,207.2 | | Adjusted gross margin | 34.4% | 35.4% | 33.9% | 34.4% | | Adjusted operating earnings | $154.0 | $159.0 | $428.4 | $443.5 | | Adjusted operating earnings margin | 13.6% | 13.7% | 12.4% | 12.6% | | Adjusted net earnings | $122.5 | $123.7 | $330.2 | $337.5 | | Adjusted diluted EPS | $1.24 | $1.18 | $3.29 | $3.22 | | Adjusted effective tax rate | 17.3% | 18.0% | 18.5% | 19.3% | Reconciliation of Non-GAAP Liquidity Measures (Nine Months Ended, Millions USD) | Metric | Aug 1, 2025 | Aug 2, 2024 | |:----------------------------|:------------|:------------| | Net cash provided by operating activities | $348.9 | $329.8 | | Less: Purchases of property, plant, and equipment, net of proceeds from insurance claim | $57.0 | $59.3 | | **Free cash flow** | **$291.9** | **$270.5** | | Net earnings, excluding non-cash impairment charge | $324.2 | $329.0 | | **Free cash flow conversion percentage** | **90.0%** | **82.2%** | - Free cash flow increased by **7.9%** for the nine months ended August 1, 2025, to **$291.9 million**, with a conversion percentage of **90.0%**, up from **82.2%** in the prior year[160](index=160&type=chunk) [Critical Accounting Policies and Estimates](index=39&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section confirms no material changes to critical accounting policies and estimates since the last annual report - There have been no material changes to the company's critical accounting policies and estimates since the Annual Report on Form 10-K for fiscal year ended October 31, 2024[161](index=161&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section details market risk exposure, including foreign currency, interest rates, and commodity costs, and mitigation strategies [Foreign Currency Exchange Rate Risk](index=39&type=section&id=Foreign%20Currency%20Exchange%20Rate%20Risk) This section discusses foreign currency exchange rate exposure and the use of forward currency contracts for hedging - The company is exposed to foreign currency exchange rate risk from transactions in Euro, Australian dollar, Canadian dollar, British pound, Mexican peso, Japanese yen, Chinese renminbi, and Romanian new leu against the U.S. dollar, and Romanian new leu against the Euro[163](index=163&type=chunk) - A stronger U.S. dollar and Mexican peso generally have a negative impact on operating results, while weaker currencies have a positive effect[163](index=163&type=chunk) - The company uses forward currency contracts to hedge foreign currency risk, with a policy that prohibits speculative use. These derivatives offset changes in the values of underlying exposures[165](index=165&type=chunk) Outstanding Derivative Instruments (Millions USD) | Currency Pair | Notional Amount | Fair Value | Gain (Loss) at Fair Value | |:------------------------------|:----------------|:-----------|:--------------------------| | Buy U.S. dollar/Sell Australian dollar | $83.1 | $84.0 | $0.9 | | Buy U.S. dollar/Sell Canadian dollar | $48.4 | $48.5 | $0.1 | | Buy U.S. dollar/Sell Euro | $201.3 | $195.0 | $(6.3) | | Buy U.S. dollar/Sell British pound | $60.5 | $58.9 | $(1.6) | | Buy Mexican peso/Sell U.S. dollar | $64.1 | $67.4 | $3.3 | [Interest Rate Risk](index=40&type=section&id=Interest%20Rate%20Risk) This section addresses interest rate risk from variable rates on credit facilities and term loans, and hedging practices - Interest rate risk primarily stems from fluctuations in variable interest rates on the revolving credit facility and term loan credit agreements[167](index=167&type=chunk) - As of August 1, 2025, indebtedness included **$524.3 million** of gross fixed-rate long-term debt and **$510.0 million** of gross variable rate debt (**$395.0 million** term loans, **$115.0 million** revolving credit facility)[167](index=167&type=chunk) - The company generally does not use interest rate swaps to mitigate interest rate fluctuations[167](index=167&type=chunk) [Commodity Cost Risk](index=40&type=section&id=Commodity%20Cost%20Risk) This section outlines commodity cost exposure for various materials and strategies to mitigate these risks - The company is exposed to commodity cost changes for materials like steel, aluminum, petroleum, natural gas-based resins, linerboard, copper, lead, rubber, engines, transmissions, transaxles, hydraulics, and electrification components[168](index=168&type=chunk)[169](index=169&type=chunk) - Mitigation strategies include productivity initiatives (e.g., supplier collaboration, alternative sourcing, material substitution, Lean methods), internal cost reduction, and product price increases[170](index=170&type=chunk) - Failure of mitigation strategies to fully offset cost increases could lead to a decline in gross margins[170](index=170&type=chunk) [Item 4. Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms effective disclosure controls and procedures and no material changes in internal control over financial reporting [Evaluation of Disclosure Controls and Procedures](index=41&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) This section confirms management's conclusion on the effectiveness of disclosure controls and procedures as of the reporting date - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of August 1, 2025, providing reasonable assurance that required information is recorded, processed, summarized, and reported timely[171](index=171&type=chunk)[172](index=172&type=chunk) [Changes in Internal Control Over Financial Reporting](index=41&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) This section reports no material changes in internal control over financial reporting during the three months ended August 1, 2025 - There were no changes in internal control over financial reporting during the three months ended August 1, 2025, that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[173](index=173&type=chunk) [Part II. Other Information](index=42&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=42&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 14 for a description of the company's material legal proceedings in the ordinary course of business - The company is involved in various legal proceedings, including product liability, environmental, commercial, employment, and patent litigation, as detailed in Note 14, Commitments and Contingencies[175](index=175&type=chunk) [Item 1A. Risk Factors](index=42&type=section&id=Item%201A.%20Risk%20Factors) This section states no material changes to risk factors previously disclosed in the company's most recent Annual Report on Form 10-K - No material changes have occurred to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended October 31, 2024[176](index=176&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details common stock repurchases made under the Board-authorized stock repurchase program during the third fiscal quarter Common Stock Repurchases (Third Quarter Ended August 1, 2025) | Period | Total Number of Shares Repurchased | Average Price Paid per Share | Repurchased Under Publicly Announced Plans | Maximum Shares Remaining Under Plans | |:------------------------------|:-----------------------------------|:-----------------------------|:-------------------------------------------|:-------------------------------------| | May 3, 2025 through May 30, 2025 | 340,400 | $73.44 | 340,400 | 5,281,264 | | May 31, 2025 through July 4, 2025 | 350,806 | $71.26 | 350,806 | 4,930,458 | | July 5, 2025 through August 1, 2025 | 540,278 | $74.26 | 538,668 | 4,391,790 | | **Total** | **1,231,484** | **$73.18** | **1,229,874** | | - The company repurchased **1,229,874 shares** under its stock repurchase program during the third fiscal quarter, with **4,391,790 shares** remaining available for repurchase as of August 1, 2025[177](index=177&type=chunk) [Item 5. Other Information](index=42&type=section&id=Item%205.%20Other%20Information) This section reports on Rule 10b5-1 and non-Rule 10b5-1 trading arrangements by directors and officers - No directors or officers adopted, terminated, or modified Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the third quarter ended August 1, 2025[178](index=178&type=chunk) [Item 6. Exhibits](index=43&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of the Form 10-Q, including organizational documents, indentures, and certifications - Exhibits include the Restated Certificate of Incorporation, Amended and Restated Bylaws, various Indentures, an Offer Letter for Edric J. Funk, CEO/CFO certifications (Sarbanes-Oxley Act), and Inline XBRL financial data[180](index=180&type=chunk) [Signatures](index=44&type=section&id=Signatures) This section contains the required signatures for the Form 10-Q filing - The report was signed on September 4, 2025, by Angela C. Drake, Vice President, Chief Financial Officer, who is also the principal financial and accounting officer[182](index=182&type=chunk)