Financial Data and Key Metrics Changes - The company reported fourth-quarter consolidated net sales of $1.07 billion, a decrease of 0.9% from the previous year, primarily due to lower shipments and prior-year divestitures, partially offset by net price realization [14] - For the full year, total consolidated net sales were $4.51 billion, essentially in line with fiscal 2024 net sales, adjusting for the impact of divestitures [14] - Adjusted diluted earnings per share for the fourth quarter were $0.91, compared to $0.95 in the prior year, reflecting higher expenses related to restored employee incentives [15][16] - Full-year adjusted earnings per diluted share were $4.20, slightly up from $4.17 in fiscal 2024 [16] Business Line Data and Key Metrics Changes - Professional segment net sales in the fourth quarter were $910 million, virtually equal to last year's performance, with earnings margin at 19.2%, up 60 basis points year-over-year [11][12] - Residential segment fourth-quarter net sales were $147 million, down 5.1% from the prior year, but exceeded expectations due to net price realization and higher shipments of snow products [12][13] - For the full year, residential segment net sales were $858.4 million, down 14% from the prior year, with earnings margin at 4.2% [14] Market Data and Key Metrics Changes - The company experienced sustained momentum in the underground construction business and better-than-anticipated growth in snow and ice management [5] - The acquisition of Tornado Infrastructure Technologies is expected to enhance the company's position in the underground construction market, driven by new infrastructure installation projects [6][25] Company Strategy and Development Direction - The company is focused on leveraging its diverse portfolio, driving operational excellence, and investing in technology and innovation to enhance customer productivity [4][10] - The AMP program aims to achieve $125 million in annualized run-rate cost savings by the end of 2026, up from the original target of at least $100 million [8][19] - The company is strategically investing in growth markets such as golf, grounds, and underground construction, while maintaining a disciplined approach to capital deployment [17][28] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the macroeconomic environment, including inflation and interest rates, which may pressure consumer confidence [18] - For fiscal 2026, the company expects total net sales to rise by 2%-5%, with professional segment sales expected to grow mid-single digits and residential segment sales expected to decline low to mid-single digits [18][19] - The company anticipates an improvement in total adjusted gross margin in 2026, reflecting its ability to navigate cost pressures while investing in innovation [19] Other Important Information - The company returned $441 million to shareholders through dividends and share repurchases in fiscal 2025, demonstrating confidence in its cash generation capabilities [16][21] - The leverage ratio remains healthy at 1.3 times, providing financial flexibility for strategic investments [17] Q&A Session Summary Question: Guidance on sales growth and volume expectations - Management indicated that a portion of the sales growth is attributed to the Tornado acquisition, with continued strength expected in the professional segment, particularly in underground construction and golf [30][31] Question: Residential segment outlook - The residential segment is expected to see a decline in the first quarter but may improve in subsequent quarters due to factors like snow and channel restocking [32][33] Question: AMP program and savings targets - The company raised its AMP savings target to $125 million, with savings expected to come from operational efficiency and supply chain improvements [34][35] Question: Raw material costs for 2026 - Management expects some inflation in raw material costs early in the year, settling mid-year [37] Question: Channel inventories and backlog status - The company reported a $400 million improvement in backlog year-over-year, indicating strong demand across various segments [38][39]

Financial Performance - The company's net sales reached $451 billion in F25[39], with a CAGR of +78% from F15 to F25[26] - Adjusted EPS CAGR was +107% from F15 to F25[26] - Average ROIC was +228% from F15 to F25[26] - Record free cash flow of $578 million in F25, up from $471 million in F24[30], representing a free cash flow conversion of 146%, up from 112%[30] - The company returned a total of $441 million to shareholders in F25, including $1511 million in dividends and $290 million in share repurchases[30, 110] - ROIC increased to 170% in F25, up from 166% in F24[30] Segment Performance - Professional segment net sales reached $3624 billion in F25, up 19% from $3557 billion in F24[30, 32] - Professional segment earnings margin increased to 194% in F25, up from 180% in F24[31] - Residential segment net sales reached $086 billion in F25[64] Strategic Initiatives and Outlook - The company expects annualized savings of $125 million+ from productivity initiatives, with $86 million already implemented[33] - The company estimates F26 tariff headwinds to be approximately $100 million[116] - The company provides F26 full-year guidance, expecting net sales growth of 2% to 5% and adjusted diluted EPS of $435 to $450[130]

分组1 - Toro reported quarterly earnings of $0.91 per share, exceeding the Zacks Consensus Estimate of $0.86 per share, but down from $0.95 per share a year ago, representing an earnings surprise of +5.81% [1] - The company achieved revenues of $1.07 billion for the quarter ended October 2025, surpassing the Zacks Consensus Estimate by 2.09%, although this is a slight decrease from year-ago revenues of $1.08 billion [2] - Toro has surpassed consensus EPS estimates in all four of the last quarters, but has only topped consensus revenue estimates once during the same period [2] 分组2 - The stock has underperformed, losing about 9.3% since the beginning of the year, compared to the S&P 500's gain of 15.6% [3] - The current consensus EPS estimate for the upcoming quarter is $0.81 on revenues of $990.01 million, and for the current fiscal year, it is $4.67 on revenues of $4.59 billion [7] - The Tools - Handheld industry, to which Toro belongs, is currently ranked in the top 41% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Group 1: Toro Co Performance - Toro Co reported quarterly earnings of 91 cents per share, exceeding the analyst consensus estimate of 87 cents per share [1] - The company achieved quarterly sales of $1.066 billion, surpassing the analyst consensus estimate of $1.048 billion [1] - Following the earnings report, Toro's shares rose by 7% to $77.82 [1] Group 2: Other Notable Stock Movements - DBV Technologies SA shares increased by 35.5% to $24.36 after meeting primary endpoints in the Phase 3 VITESSE trial [3] - Udemy Inc gained 26.5% to $6.79 due to an all-stock merger agreement with Coursera [3] - Kodiak Sciences Inc jumped 16.7% to $28.16 after announcing a public offering of common stock [3] - Hut 8 Corp rose 16.3% to $42.88 following a partnership to accelerate AI infrastructure deployment and a $7.0 billion lease agreement [3] - Canopy Growth Corp increased by 16.2% to $2.13 amid reports of potential reclassification of marijuana [3] - Recursion Pharmaceuticals Inc gained 13.2% to $4.76 after an upgrade from JP Morgan [3] - Two Harbors Investment Corp surged 13.2% to $11.21 due to an acquisition announcement [3] - Quantumscape Corp gained 7.7% to $11.66 after signing a joint development agreement with a top-10 global automaker [3] - Jabil Inc reported better-than-expected earnings, leading to a 7% increase in shares to $227.50 [3]

Financial Performance - Fourth-quarter net sales were $1.07 billion, a decrease of 1% compared to $1.08 billion in the same period of fiscal 2024[2]. - Full-year net sales were $4.51 billion, down 2% from $4.58 billion in fiscal 2024, primarily due to prior year divestitures of non-core assets[2][10]. - Fourth-quarter reported diluted EPS was $0.74, a decrease of 15% from $0.87 in the same period of fiscal 2024; adjusted diluted EPS was $0.91, down 4% from $0.95[3][9]. - Full-year reported diluted EPS was $3.17, down 21% from $4.01 in fiscal 2024; adjusted diluted EPS was $4.20, an increase of 1% from $4.17[3][10]. - Net earnings for the twelve months ended October 31, 2025, were $316.1 million, down from $418.9 million in 2024, representing a decrease of 24.5%[33]. - The company reported a diluted net earnings per share of $3.17 for the twelve months ended October 31, 2025, compared to $4.01 in 2024, a decline of 21.0%[33]. Cash Flow and Shareholder Returns - Record free cash flow of $578 million was generated in fiscal 2025, largely due to working capital improvements[5]. - The company returned $441 million to shareholders through cash dividends and common stock repurchases[5]. - Net cash provided by operating activities increased to $662.0 million for the twelve months ended October 31, 2025, up from $569.9 million in 2024, representing a growth of 16.2%[39]. - Free cash flow for the twelve months ended October 31, 2025, was $578.3 million, an increase of 22.9% from $470.7 million in 2024[43]. Operational Efficiency - Professional segment full-year earnings margin improved to 19.4%, up from 18.0% in the prior year, driven by productivity improvements and net price realization[4][10]. - SG&A expense as a percentage of net sales for fiscal 2025 was 22.5%, compared to 22.2% in fiscal 2024, primarily driven by lower net sales volume and higher incentive expenses[17]. - Gross profit for the twelve months ended October 31, 2025, was $1,504.8 million, resulting in a gross margin of 33.4%, down from 33.8% in 2024[33]. - Adjusted gross profit for the twelve months ended October 31, 2025, was $1,536.4 million, slightly down from $1,555.0 million in 2024, reflecting a decrease of 1.2%[42]. - The adjusted gross margin improved to 34.1% for the twelve months ended October 31, 2025, compared to 33.9% in 2024[42]. - Operating earnings for the twelve months ended October 31, 2025, were $409.9 million, down 23.2% from $533.3 million in 2024[42]. Strategic Initiatives and Future Outlook - Fiscal 2026 adjusted diluted EPS guidance is set between $4.35 and $4.50, reflecting mid-single digit earnings growth expectations[5][7]. - The Tornado Infrastructure Equipment acquisition is expected to contribute approximately 2% to total company net sales and have a modestly accretive impact on adjusted diluted EPS[8]. - The company anticipates that the differences between adjusted diluted EPS for fiscal 2026 and diluted EPS will include non-cash, large, and/or unpredictable charges and benefits[29]. - The company launched the "Amplifying Maximum Productivity" (AMP) initiative in the first quarter of fiscal 2024, which is expected to impact future productivity and operational efficiency[42]. Balance Sheet Highlights - Total current assets decreased to $1,705.1 million as of October 31, 2025, from $1,764.9 million in 2024[37]. - Cash and cash equivalents increased to $341.0 million as of October 31, 2025, compared to $199.5 million in 2024[37]. - The company’s total liabilities decreased to $1,985.5 million as of October 31, 2025, from $2,030.4 million in 2024[37]. - The effective tax rate for the twelve months ended October 31, 2025, was 16.3%, down from 18.3% in 2024[42]. - The company recorded a non-cash impairment charge of $81.1 million during the twelve months ended October 31, 2025[42].

Core Insights - The Toro Company reported fourth-quarter net sales of $1.07 billion, slightly down from $1.08 billion in the same period of fiscal 2024 [1] - Full-year net sales for the company were $4.51 billion, a decrease from $4.58 billion in fiscal 2024, primarily attributed to divestitures of non-core assets [1] Financial Performance - Fourth-quarter net sales decreased by approximately 0.9% year-over-year [1] - Full-year net sales decreased by about 1.5% compared to the previous fiscal year [1]

Core Insights - Toro Company is set to release its fourth-quarter earnings results on December 17, with expected earnings of 88 cents per share, a decrease from 95 cents per share in the same quarter last year [1] - The anticipated quarterly revenue for Toro is $1.05 billion, down from $1.08 billion year-over-year [1] Group 1: Earnings and Financial Performance - Analysts predict Toro's quarterly earnings will be 88 cents per share, a decline from 95 cents per share in the previous year [1] - The consensus estimate for Toro's quarterly revenue is $1.05 billion, compared to $1.08 billion a year earlier [1] Group 2: Share Repurchase and Dividend - On December 9, Toro authorized the repurchase of up to an additional 6 million shares and increased its quarterly dividend from 38 cents to 39 cents per share [2] - Toro shares experienced a slight decline of 0.1%, closing at $73.99 [2] Group 3: Analyst Ratings and Price Targets - Northland Capital Markets maintained a Market Perform rating and raised the price target from $80 to $90 [3] - DA Davidson maintained a Buy rating and increased the price target from $93 to $97 [3] - Baird maintained a Neutral rating and raised the price target from $82 to $86 [3] - Raymond James maintained an Outperform rating but reduced the price target from $95 to $90 [3] - BTIG initiated coverage with a Buy rating and set a price target of $1,115 [3]

Earnings Report - The Toro Company is set to release its fourth-quarter earnings results on December 17, with analysts expecting earnings of 88 cents per share, a decrease from 95 cents per share in the same period last year [1] - The consensus estimate for quarterly revenue is $1.05 billion, down from $1.08 billion a year earlier [1] Share Repurchase and Dividend Increase - On December 9, Toro Company authorized the repurchase of up to an additional 6 million shares and increased its quarterly dividend from 38 cents to 39 cents per share [2] - Toro shares experienced a slight decline of 0.1%, closing at $73.99 [2] Analyst Ratings and Price Targets - Northland Capital Markets maintained a Market Perform rating and raised the price target from $80 to $90 [3] - DA Davidson maintained a Buy rating and increased the price target from $93 to $97 [3] - Baird maintained a Neutral rating and raised the price target from $82 to $86 [3] - Raymond James maintained an Outperform rating but reduced the price target from $95 to $90 [3] - BTIG initiated coverage with a Buy rating and set a price target of $1,115 [3]

Core Insights - The Toro Company is set to release its quarterly earnings on December 17, 2025, with anticipated earnings per share (EPS) of $0.86 and revenue projections of approximately $1.05 billion, which are critical for assessing the company's financial health and operational efficiency [1][5] Financial Performance - The company has declared a regular quarterly cash dividend and authorized the repurchase of up to an additional six million shares, reflecting its strategy to enhance shareholder value [2][5] - The price-to-earnings (P/E) ratio stands at 21.76, indicating that investors are willing to pay $21.76 for every dollar of earnings, suggesting confidence in future growth prospects [2][5] - The price-to-sales ratio is 1.59, meaning the market values the company's sales at 1.59 times its revenue [3] - The enterprise value to sales ratio is 1.80, and the enterprise value to operating cash flow ratio is 13.78, providing insights into the company's valuation and cash flow efficiency [3] Financial Ratios - The earnings yield is 4.60%, indicating the earnings generated per dollar invested, which offers a perspective on the return on investment for shareholders [4] - The debt-to-equity ratio is 0.81, suggesting a moderate level of debt compared to equity, which is a positive sign for financial stability [4] - The current ratio is 1.88, demonstrating the company's ability to cover its short-term liabilities with its short-term assets, ensuring liquidity and operational flexibility [4][5]

Core Insights - Synchrony Financial (SYF) and The Toro Company have launched a co-branded credit card to enhance dealer networks and facilitate financing for lawn equipment, responding to the growing demand in both residential and commercial markets [1][5] Financing Features - The Toro Company credit card offers flexible promotional financing options, easy digital applications, and tools to help dealers close sales more effectively, reducing friction at the point of sale [2][4] - SYF's PRISM underwriting engine utilizes over 9,000 data attributes for nuanced credit approvals, potentially expanding the pool of qualified buyers and improving sales conversions for dealers [3][8] Dealer Support - Synchrony provides comprehensive support to dealers, including 24/7 merchant assistance, tailored marketing materials, digital account management, and training resources, aimed at enhancing sales momentum and customer experience [4][8] Market Positioning - The collaboration between Synchrony and The Toro Company may set a new standard for financing systems in specialized equipment industries, integrating credit access into the dealer experience and fostering stronger merchant relationships [5] Stock Performance - Year-to-date, Synchrony shares have increased by 11.2%, contrasting with a 9.8% decline in the industry [6]