The Toro pany(US:TTC)2025-12-17 13:52Financial 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].