Toromont Industries Reports Q2 Earnings Growth Driven by Equipment Group
Toromont Industries reported a strong second-quarter performance in fiscal year 2026, with revenue rising 16% and operating income increasing 41%, primarily driven by its Equipment Group. Despite these gains, earnings per share remained largely unchanged due to CAD 54.3 million in AVL purchase-commitment expenses. Excluding those costs, net earnings rose 42%. The Equipment Group saw significant growth across mining revenue (up 72%), power-systems equipment sales (up 43%), and operating income (up 47%). AVL's quarterly revenue tripled to CAD 171 million as Toromont increased its ownership stake in the business to 80%. A new Ontario facility is expected to begin production mid-2027, adding up to 50% more capacity. Meanwhile, CIMCO underperformed due to project timing and investment spending, with operating income down by 20%. Toromont ended Q2 with CAD 1.2 billion in cash and a net debt-to-capital ratio of -13%, reflecting strong liquidity. The company also announced a quarterly dividend increase to CAD 0.56 per share, payable on October 2, 2026.
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Topics: avl_expansion operating_income_increase revenue_growth