Toro Reports Q3 Earnings with Strong Sales Growth and Raised Full-Year Guidance
The Toro Company (NYSE: TTC) reported third-quarter net sales of $1.23 billion, an 8.4% increase year over year driven by higher volume and pricing in both professional and residential markets. Adjusted earnings per share rose to $1.33, up 7.3%. The Professional segment saw the strongest growth at 8.8%, while Residential sales increased by 8.6%, aided by a partnership with Lowe's. Toro raised its full-year adjusted EPS guidance from $4.50–$4.62 to $4.60–$4.65 and net sales guidance from 4%–6.5% growth to 6.3%–6.6%. The company also reported strong free cash flow of $425.1 million year-to-date, with a conversion rate of 127.5%, and returned over $358 million in shareholder value through share repurchases. The firm highlighted productivity gains from its AMP initiative, which contributed to an adjusted operating margin increase of 30 basis points to 13.9%. However, the Residential segment’s margin improvement was largely due to a favorable comparison with prior-year inventory adjustments.
Tickers: $TTC
Topics: Adjusted EPS Earnings Free Cash Flow Guidance Update Inventory Management Margin Analysis Sales Growth Segment Performance Share Repurchases