The Toro Company Reports Fiscal 2026 First-Quarter Results and Raises Full-Year Guidance

Core Insights - The Toro Company reported strong fiscal 2026 first-quarter results, exceeding expectations in both Professional and Residential segments, with net sales of $1.04 billion, a 4% year-over-year increase [1] - The company raised its full-year guidance for net sales growth to a range of 3% to 6.5% and adjusted EPS to a range of $4.40 to $4.60, reflecting positive market conditions and strategic initiatives [1][3] - The company returned $133 million to shareholders through dividends and stock repurchases, indicating a commitment to shareholder value [1] Financial Highlights - First-quarter net sales reached $1,036.3 million, up from $995.0 million in the same period last year, marking a 4% increase [1] - Adjusted EPS increased by 14% year-over-year to $0.74, while reported EPS was $0.69, a 33% increase from $0.52 [1] - Net earnings for the first quarter were $67.9 million, up 29% from $52.8 million in the prior year [1] Segment Performance - Professional segment net sales were $824.0 million, a 7.2% increase from $768.8 million, driven by higher shipments of snow and ice management products and the Tornado acquisition [1] - Residential segment net sales decreased by 6.8% to $206.0 million, primarily due to lower shipments of lawn care products, despite higher shipments of snow and ice management products [1] - Professional segment earnings increased to $137.6 million, while Residential segment earnings decreased to $13.2 million, reflecting higher material costs in the Residential segment [1] Operational Efficiency - Gross margin for the first quarter was 32.5%, down from 33.7% in the prior year, attributed to higher material and manufacturing costs [1] - Selling, general and administrative (SG&A) expenses as a percentage of net sales improved to 24.1% from 25.9% in the prior year, indicating better cost management [1] - Operating earnings as a percentage of net sales increased to 8.4%, compared to 7.8% in the same prior-year period [1] Strategic Outlook - The company is focusing on investing in technology and innovation to enhance customer productivity and capitalize on market opportunities [1] - The acquisition of Tornado Infrastructure Equipment is expected to contribute approximately 2% to total company net sales and be modestly accretive to adjusted EPS [1] - The company aims to leverage its diverse portfolio of brands for profitable growth and competitive advantage [1]