The Toro pany(US:TTC)2025-12-17 19:34Cost Management and Efficiency - The company aims to achieve annualized cost savings of over $125 million by fiscal 2027 through its "Amplifying Maximum Productivity" initiative[176]. - The company utilizes Lean methods in its manufacturing processes to streamline operations and reduce waste[41]. - The company utilizes DFM/A principles throughout the product development process to optimize product quality and reduce costs[42]. - Key cost exposures include commodities like steel, aluminum, and petroleum-based resins, which are subject to market price fluctuations and can impact manufacturing costs[44]. Environmental Commitment - The company is committed to increasing battery and hybrid product sales and reducing greenhouse gas emissions over time[176]. - The company is subject to California's AB 1346, which mandates that most new sales of small off-road engines must be zero-emission starting January 1, 2024[167]. - The business is subject to numerous environmental regulations, including emissions standards and waste disposal laws[85]. Product Quality and Innovation - The company emphasizes innovation and quality in its products, investing in new product development and improvements[38]. - The company faces significant risks associated with product quality issues and product liability claims, which could adversely affect its reputation and financial condition[171]. - The production system employs methodologies such as Kanban and build-to-order to align production with customer demand, resulting in improved service levels[43]. Market and Competition - The company faces competition from both larger and smaller firms across various markets, making precise market share estimation challenging[66]. - The order backlog represents unfulfilled customer orders and is an indicator of business conditions, though it does not directly predict future net sales[65]. Distribution and Sales - The company has a diverse distribution network with over 150 distributors and operates in more than 125 countries, reducing long-term dependency on any single customer[56]. - The company has agreements with third-party financing companies to provide alternative financing options to end-customers globally[63]. - Seasonal shipment volumes are highest in the fiscal second quarter, with retail demand peaking in the fiscal third quarter, impacting accounts receivable and working capital[51]. Employee Engagement and Development - The average number of employees during fiscal 2025 was 9,791, with a total of 9,227 employees as of October 31, 2025[72]. - Approximately 9.4% of employees were represented by a union under collective bargaining agreements, with agreements set to expire between March 2026 and October 2028[73]. - The company provides mandatory safety training each month to empower employees with knowledge and tools for safe choices[74]. - Employee engagement surveys are conducted to enhance the employee experience and promote retention[75]. - The company offers a wide range of professional development opportunities, including apprenticeships, job training, and leadership development programs[76]. - Health and wellness programs include 24/7 access to licensed physicians and on-site nurses at some manufacturing sites[77]. - The company conducts regular compensation market benchmarking to provide competitive pay and benefits[79]. Community and Social Responsibility - Community involvement includes employee volunteerism and donations, enhancing outdoor spaces and supporting local organizations[80]. - The company is committed to upholding human rights and prohibits all forms of child and forced labor[83]. Legal and Regulatory Compliance - The company is subject to extensive laws and regulations, which may increase compliance costs and affect its operating results[164]. - Compliance with existing laws and regulations has not historically impacted capital expenditures or earnings materially[87]. - The company monitors patent and trademark registrations to minimize infringement risks and is involved in patent litigation from time to time[48][49]. Company Background - The Toro Company was incorporated in 1935 and reincorporated in Delaware in 1983[88]. - The company files reports and other information with the SEC, which can be accessed on their website[89].