Toro (NYSE:TTC) Issues Quarterly Earnings Results

Toro (NYSE:TTC) posted its earnings results on Wednesday. The company reported $0.91 EPS for the quarter, topping analysts’ consensus estimates of $0.86 by $0.05, Zacks reports. The business had revenue of $1.07 billion during the quarter, compared to analyst estimates of $1.05 billion. Toro had a return on equity of 28.90% and a net margin of 7.01%.The company’s quarterly revenue was down .9% compared to the same quarter last year. During the same quarter last year, the company earned $0.95 EPS. Toro updated its FY 2026 guidance to 4.350-4.50 EPS.

Here are the key takeaways from Toro’s conference call:

• Beat expectations and generated strong cash — consolidated Q4 net sales of $1.07 billion, full-year adjusted EPS of $4.20, and a record free cash flow of $578 million (146% conversion) while returning $441 million to shareholders.
• Raised its AMP productivity target to $125 million run-rate by end of 2026 after realizing roughly $75–80 million to date, driven by facility consolidations, ~15% reduction in salaried workforce, and divestitures, with up to 50% of savings planned for reinvestment.
• Acquired Tornado Infrastructure Technologies to expand in vacuum excavation and underground construction (adds a few hundred basis points to growth and is EBITDA-accretive) but will not be fully accretive to operating margin in year one due to transaction-related costs.
• 2026 guidance targets revenue growth of 2%–5%, adjusted EPS of $4.35–$4.50, expected gross-margin and operating-margin improvement, a higher dividend and authorization to repurchase up to six million shares, and a projected free cash flow conversion >110%.
• Tariff exposure is a notable headwind — management estimates roughly $100 million of tariff impact in fiscal 2026 (up from ~$65 million in 2025), with steel/aluminum (232) and China-related tariffs the largest components, and some uncertainty remains despite mitigation efforts.

Toro Trading Down 2.7%

Toro stock opened at $78.24 on Friday. The company has a current ratio of 1.87, a quick ratio of 0.79 and a debt-to-equity ratio of 0.63. Toro has a 12-month low of $62.34 and a 12-month high of $87.46. The firm has a market capitalization of $7.66 billion, a price-to-earnings ratio of 24.68 and a beta of 0.84. The firm has a 50 day moving average of $72.74 and a 200 day moving average of $74.47.

Toro Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, January 12th. Investors of record on Monday, December 22nd will be paid a dividend of $0.39 per share. This is a boost from Toro’s previous quarterly dividend of $0.38. The ex-dividend date is Monday, December 22nd. This represents a $1.56 dividend on an annualized basis and a dividend yield of 2.0%. Toro’s dividend payout ratio is presently 47.95%.

Analyst Ratings Changes

A number of equities analysts have weighed in on TTC shares. Weiss Ratings reissued a “hold (c-)” rating on shares of Toro in a research report on Wednesday, October 8th. Robert W. Baird set a $84.00 price objective on shares of Toro in a research report on Tuesday. DA Davidson lifted their target price on shares of Toro from $93.00 to $97.00 and gave the stock a “buy” rating in a research report on Friday, September 5th. Longbow Research raised Toro from a “neutral” rating to a “buy” rating and set a $100.00 price target on the stock in a report on Monday, August 25th. Finally, Northland Securities raised their price target on Toro from $80.00 to $90.00 and gave the stock a “market perform” rating in a research note on Tuesday, September 9th. Three research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat, Toro presently has a consensus rating of “Hold” and an average price target of $92.20.

Institutional Investors Weigh In On Toro

Institutional investors have recently bought and sold shares of the business. Captrust Financial Advisors lifted its position in shares of Toro by 16.6% in the third quarter. Captrust Financial Advisors now owns 52,879 shares of the company’s stock valued at $4,029,000 after acquiring an additional 7,511 shares in the last quarter. Horizon Investments LLC grew its position in shares of Toro by 88.4% during the third quarter. Horizon Investments LLC now owns 29,392 shares of the company’s stock worth $2,229,000 after purchasing an additional 13,789 shares in the last quarter. Russell Investments Group Ltd. raised its stake in Toro by 11.0% during the 3rd quarter. Russell Investments Group Ltd. now owns 125,215 shares of the company’s stock valued at $9,541,000 after purchasing an additional 12,380 shares during the period. Empowered Funds LLC raised its stake in Toro by 9.8% during the 1st quarter. Empowered Funds LLC now owns 38,840 shares of the company’s stock valued at $2,826,000 after purchasing an additional 3,464 shares during the period. Finally, Goldman Sachs Group Inc. lifted its holdings in Toro by 37.4% in the 1st quarter. Goldman Sachs Group Inc. now owns 456,861 shares of the company’s stock worth $33,237,000 after purchasing an additional 124,373 shares in the last quarter. Hedge funds and other institutional investors own 87.95% of the company’s stock.

Toro Company Profile

The Toro Company designs, manufactures, markets, and sells professional turf maintenance equipment and services. It operates through two segments: Professional and Residential. The Professional segment offers turf and landscape equipment products, including sports fields and grounds mowing and maintenance equipment, golf course mowing and maintenance equipment, landscape contractor mowing equipment, landscape creation and renovation equipment, and other maintenance equipment; rental, specialty, and underground construction equipment, such as horizontal directional drills, walk and ride trenchers, stand-on skid steers, vacuum excavators, stump grinders, turf renovation products, asset locators, pipe rehabilitation solutions, materials handling equipment, and other after-market tools; and snow and ice management equipment, such as snowplows, as well as stand-on snow and ice removal equipment, such as snowplow, snow brush, and snow thrower attachments, salt and sand spreaders, and related parts and accessories for light and medium duty trucks, utility task vehicles, skid steers, and front-end loaders.