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BLOOMINGTON, Minn.--(BUSINESS WIRE)--The Toro Company Elects President and Chief Operating Officer Edric C. Funk to Succeed Richard M. Olson as Chief Executive Officer.

, /PRNewswire/ -- Scholarship America and The Toro Company are celebrating a milestone in 2026: fifty years of partnership expanding access to higher education.

In 1976, The Toro Company became Scholarship America's first corporate client. The program has granted scholarships worth more than $4.7 million.

"Our partnership with Scholarship America reflects who we are as a company and what we believe in. Education changes lives — not just for individuals, but for families and communities," said Rick Olson, Chairman and CEO of The Toro Company. "By investing in our scholarship program, we are investing in the children of our employees and supporting their academic journeys, their ambitions, and their futures. This commitment honors our people and ensures opportunities continue for generations to come." 

"We are thrilled to celebrate a half-century of partnership with The Toro Company," said Mike Nylund, Scholarship America President & CEO. "While higher education has changed immensely over the past fifty years, the company's dedication to students is unwavering, and we look forward to many more decades of collaborative impact." 

Both organizations remain united by the same conviction that has defined this partnership from the start: that every student deserves the opportunity to pursue their future. 

About The Toro Company: 

The Toro Company (NYSE: TTC) is a leading global provider of solutions for the outdoor environment including turf and landscape maintenance, snow and ice management, underground utility construction, rental and specialty construction, and irrigation and outdoor lighting solutions. With net sales of $4.5 billion in fiscal 2025, The Toro Company's global presence extends to more than 125 countries through a family of brands that includes Toro, Ditch Witch, Exmark, BOSS, Ventrac, Tornado, HammerHead, American Augers, Spartan, Subsite, Radius, Hayter, Perrot, Unique Lighting Systems, Irritrol, and Lawn-Boy. Through constant innovation and caring relationships built on trust and integrity, The Toro Company and its family of brands have built a legacy of excellence by helping customers work on golf courses, sports fields, construction sites, public green spaces, commercial and residential properties and agricultural operations. For more information, visit www.thetorocompany.com.

About Scholarship America: 

Scholarship America is a non-profit organization that eliminates barriers to educational success so that students can pursue their dreams. Since 1958, Scholarship America has distributed $6 billion to 3.5 million students. Learn more at scholarshipamerica.org.

Media Contact: Iman Mohamed, [email protected]

SOURCE Scholarship America

Posted by Defense World Staff on Apr 2nd, 2026

Toro Company (The) (NYSE:TTC – Get Free Report) saw unusually large options trading on Wednesday. Traders bought 1,176 put options on the stock. This represents an increase of 1,709% compared to the average daily volume of 65 put options.

Wall Street Analyst Weigh In A number of equities research analysts have recently issued reports on TTC shares. Wall Street Zen raised shares of Toro from a “buy” rating to a “strong-buy” rating in a report on Sunday, March 15th. Zacks Research upgraded shares of Toro from a “strong sell” rating to a “hold” rating in a research report on Tuesday, January 20th. Robert W. Baird upped their price objective on shares of Toro from $100.00 to $105.00 and gave the company a “neutral” rating in a research note on Friday, March 6th. DA Davidson increased their price objective on shares of Toro from $97.00 to $117.00 and gave the company a “buy” rating in a report on Monday, March 9th. Finally, Raymond James Financial lowered shares of Toro from an “outperform” rating to a “market perform” rating in a research note on Wednesday, February 18th. Two investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Hold” and an average target price of $100.40.

Get Our Latest Analysis on Toro

Toro Trading Up 0.1% TTC opened at $93.52 on Thursday. The stock has a market capitalization of $9.07 billion, a PE ratio of 28.00 and a beta of 0.80. Toro has a one year low of $62.34 and a one year high of $105.18. The company has a debt-to-equity ratio of 0.75, a quick ratio of 0.73 and a current ratio of 1.69. The business’s 50 day moving average price is $96.22 and its 200 day moving average price is $83.36.

Toro (NYSE:TTC – Get Free Report) last posted its earnings results on Thursday, March 5th. The company reported $0.74 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.65 by $0.09. Toro had a return on equity of 29.60% and a net margin of 7.28%.The company had revenue of $1.04 billion during the quarter, compared to analysts’ expectations of $1 billion. During the same quarter last year, the firm earned $0.65 earnings per share. The firm’s quarterly revenue was up 4.2% compared to the same quarter last year. Toro has set its FY 2026 guidance at 4.400-4.600 EPS. As a group, equities research analysts expect that Toro will post 4.41 EPS for the current year.

Toro Announces Dividend The business also recently disclosed a quarterly dividend, which will be paid on Monday, April 13th. Investors of record on Monday, March 30th will be issued a $0.39 dividend. This represents a $1.56 annualized dividend and a yield of 1.7%. The ex-dividend date is Monday, March 30th. Toro’s payout ratio is 46.71%.

Insider Buying and Selling In other Toro news, CEO Richard M. Olson sold 119,400 shares of the stock in a transaction that occurred on Tuesday, March 10th. The stock was sold at an average price of $100.15, for a total transaction of $11,957,910.00. Following the completion of the transaction, the chief executive officer owned 38,186 shares of the company’s stock, valued at $3,824,327.90. This represents a 75.77% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director James Calvin O’rourke sold 4,951 shares of Toro stock in a transaction that occurred on Tuesday, March 10th. The stock was sold at an average price of $99.40, for a total value of $492,129.40. Following the completion of the sale, the director directly owned 2,704 shares in the company, valued at $268,777.60. This represents a 64.68% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 1.88% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows Large investors have recently bought and sold shares of the stock. KLP Kapitalforvaltning AS increased its position in shares of Toro by 0.6% during the third quarter. KLP Kapitalforvaltning AS now owns 32,900 shares of the company’s stock valued at $2,507,000 after acquiring an additional 200 shares during the last quarter. Rothschild Investment LLC lifted its holdings in shares of Toro by 6.0% in the 4th quarter. Rothschild Investment LLC now owns 3,609 shares of the company’s stock worth $284,000 after acquiring an additional 203 shares during the last quarter. GAMMA Investing LLC boosted its position in shares of Toro by 8.1% during the 3rd quarter. GAMMA Investing LLC now owns 3,155 shares of the company’s stock worth $240,000 after purchasing an additional 237 shares during the period. Wesbanco Bank Inc. boosted its position in shares of Toro by 4.3% during the 3rd quarter. Wesbanco Bank Inc. now owns 9,716 shares of the company’s stock worth $740,000 after purchasing an additional 400 shares during the period. Finally, Russell Investments Group Ltd. increased its holdings in Toro by 0.3% in the 4th quarter. Russell Investments Group Ltd. now owns 125,625 shares of the company’s stock valued at $9,889,000 after purchasing an additional 410 shares during the last quarter. Institutional investors and hedge funds own 87.95% of the company’s stock.

About Toro (Get Free Report)

The Toro Company (NYSE: TTC) specializes in the design, manufacture and marketing of a broad range of outdoor environment equipment for residential, commercial and professional markets. Its product portfolio includes lawn mowers, utility vehicles, snow throwers, irrigation systems and landscape maintenance equipment. Toro’s offerings span walk-behind and ride-on mowers, zero-turn radius mowers, snow blowers, sprinklers, drip irrigation products, spreaders and specialty turf maintenance machines tailored to golf courses, sports fields and municipal parks.

Founded in 1914 and headquartered in Bloomington, Minnesota, Toro has built a century-long legacy of innovation in the grounds-care industry.

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BLOOMINGTON, Minn.--(BUSINESS WIRE)--The Toro Company Declares Regular Quarterly Cash Dividend.

The Toro Company (NYSE:TTC) willreport its second quarter financial results before the opening bell on Thursday, June 4.

Analysts expect the Minneapolis, Minnesota-based company to an EPS of $1.51 on revenue of $1.39 billion. The Toro Company guided to full-year 2026 adjusted EPS of $4.40-$4.60 and net sales growth of 3%-6.5%.

The company has announced its quarterly cash dividend at $0.39 per share, payable on July 10, 2026, to shareholders of record on June 16, 2026.

The Toro Company shares rose 1.20% to close at $90.95 on Wednesday.

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BLOOMINGTON, Minn.--(BUSINESS WIRE)--The Toro Company (NYSE: TTC), a leading global provider of solutions for the outdoor environment, today reported results for its fiscal second-quarter ended May 1, 2026.

"We grew adjusted earnings per share by double-digits once again in the second quarter. This was driven by strong demand across our portfolio and continued margin expansion from operational execution,” said Richard M. Olson, chairman and chief executive officer. “The strength of our portfolio is based in the quality and performance of our products in attractive end markets which drives demand and ultimately the strong financial results delivered by the team in the second quarter. Combined with disciplined working capital management, this execution also supported another quarter of robust free cash flow and value creation for our shareholders through dividends and share repurchases.”

OUTLOOK

“The focus on our key strategic priorities to accelerate profitable growth, drive operational excellence, and empower people is driving results. Importantly, the team achieved these results despite macroeconomic and geopolitical headwinds and increasing inflationary pressures. We continue to capitalize on market opportunities in underground construction, landscape contractor and golf, while successfully executing our margin improvement initiatives. This performance gives us the confidence to raise our full-year guidance, while also reflecting the persistent and dynamic inflationary environment.”

The company is raising its full-year net sales and *adjusted EPS guidance and now expects total company net sales growth in the range of 4.0% to 6.5%, up from the previous range of 3.0% to 6.5%, and *adjusted EPS in the range of $4.50 to $4.62, up from the previous range of $4.40 to $4.60.

SECOND-QUARTER FISCAL 2026 FINANCIAL HIGHLIGHTS

Reported

Adjusted*

(dollars in millions, except per share data)

F26 Q2

F25 Q2

% Change

F26 Q2

F25 Q2

% Change

Net Sales

$

1,424.7

$

1,317.9

8.1

%

$

1,424.7

$

1,317.9

8.1

%

Net Earnings

$

145.4

$

136.8

6.3

%

$

155.4

$

141.8

9.6

%

Diluted EPS

$

1.50

$

1.37

9.5

%

$

1.60

$

1.42

12.7

%

SECOND-QUARTER FISCAL 2026 SEGMENT RESULTS

Professional Segment

Professional segment net sales for the second quarter were $1,106.6 million, up 9.1% from $1,014.1 million in the same period last year. The increase was driven primarily by net price realization, the Tornado acquisition, and higher shipments of underground construction equipment and zero-turn mowers. Professional segment earnings for the second quarter were $224.4 million, up from $202.1 million in the same period last year, and when expressed as a percentage of net sales, 20.3%, up from 19.9% in the prior-year period. The increase in profitability was primarily due to net price realization, productivity improvements, and net sales leverage, partially offset by higher material, manufacturing, and freight costs, as well as product mix. Residential Segment

Residential segment net sales for the second quarter were $310.4 million, up 4.4% from $297.40 million in the same period last year. The increase was primarily driven by net price realization and higher shipments of zero-turn mowers, partially offset by lower shipments of snow products. Residential segment earnings for the second quarter were $30.3 million, up from $16.10 million in the same period last year, and when expressed as a percentage of net sales, 9.8%, up from 5.4% in the prior-year period. The increase was largely driven by net price realization, productivity improvements, prior year inventory valuation adjustments that did not recur, cost savings measures, and net sales leverage, partially offset by higher material, manufacturing, and freight costs. OPERATING RESULTS

Gross margin and *adjusted gross margin for the second quarter were 33.9% and 34.5%, respectively, up from 33.1% and 33.4%, respectively, in the same prior-year period. The change in gross margin was primarily due to net price realization and productivity improvements, partially offset by higher material, manufacturing, and freight costs, as well as product mix.

SG&A expense as a percentage of net sales for the second quarter was 20.2%, compared with 19.8% in the prior-year period, primarily driven by higher warranty and incentive expenses, partially offset by net sales leverage and lower warehousing costs.

Operating earnings as a percentage of net sales were 13.7% for the second quarter, compared with 13.3% in the same prior-year period. *Adjusted operating earnings as a percentage of net sales for the second quarter were 14.4%, compared with 13.7% in the same prior-year period.

Interest expense was $14.8 million for the second quarter, down $1.0 million from the same prior-year period. This decrease was primarily due to lower average interest rates and lower average outstanding borrowings.

The reported effective tax rate for the second quarter was 20.7%, compared with 18.9% in the same prior-year period. The *adjusted effective tax rate for the second quarter was 21.7% compared with 18.7% in the same prior-year period. The increase in both the reported and adjusted effective tax rate was primarily due to a less favorable geographic mix of earnings

*Non-GAAP financial measure. Please refer to the “Use of Non-GAAP Financial Information” for details regarding these measures, as well as the tables provided for a reconciliation of historical non-GAAP financial measures to the most comparable GAAP measures.

LIVE CONFERENCE CALL
June 4, 2026 at 10:00a.m. CT
www.thetorocompany.com/invest

The Toro Company will conduct its earnings call and webcast for investors beginning at 10:00a.m. CT on June 4, 2026. The webcast will be available at www.thetorocompany.com/invest. Webcast participants will need to complete a brief registration form and should allocate extra time before the webcast begins to register and, if necessary, install audio software.

About The Toro Company

The Toro Company (NYSE: TTC) is a leading global provider of solutions for the outdoor environment including turf and landscape maintenance, snow and ice management, underground construction, rental and specialty construction, and irrigation and outdoor lighting solutions. With net sales of $4.5 billion in fiscal 2025, The Toro Company’s global presence extends to more than 125 countries through a family of brands that includes Toro, Ditch Witch, Exmark, BOSS, Ventrac, Tornado, HammerHead, American Augers, Spartan, Subsite, Radius, Hayter, Perrot, Unique Lighting Systems, Irritrol, and Lawn-Boy. Through constant innovation and caring relationships built on trust and integrity, The Toro Company and its family of brands have built a legacy of excellence by helping customers work on golf courses, sports fields, construction sites, public green spaces, commercial and residential properties and agricultural operations. For more information, visit www.thetorocompany.com.

Use of Non-GAAP Financial Information

This press release and the related earnings call reference certain non-GAAP financial measures, which are not calculated or presented in accordance with U.S. GAAP, as information supplemental and in addition to the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP. The non-GAAP financial measures included within this press release and the related earnings call that are utilized as measures of the company’s operating performance consist of gross profit, gross margin, operating earnings, earnings before income taxes, net earnings, diluted EPS, and the effective tax rate, each as adjusted. The non-GAAP financial measures included within this press release and the related earnings call that are utilized as measures of the company’s liquidity consist of free cash flow and free cash flow conversion percentage.

The Toro Company uses these non-GAAP financial measures in making operating decisions and assessing liquidity because it believes these non-GAAP financial measures provide meaningful supplemental information regarding core operational performance and cash flows, as a measure of the company's liquidity, and provide the company with a better understanding of how to allocate resources to both ongoing and prospective business initiatives. Additionally, these non-GAAP financial measures facilitate the company's internal comparisons for both historical operating results and competitors' operating results by factoring out potential differences caused by charges and benefits not related to its regular, ongoing business, including, without limitation, certain non-cash, large, and/or unpredictable charges and benefits; acquisitions and dispositions; legal judgments, settlements, or other matters; and tax positions. The company believes that these non-GAAP financial measures, when considered in conjunction with the financial measures prepared in accordance with U.S. GAAP, provide investors with useful supplemental financial information to better understand its core operational performance and cash flows.

Reconciliations of historical non-GAAP financial measures to the most comparable U.S. GAAP financial measures are included in the financial tables contained in this press release. These non-GAAP financial measures, however, should not be considered superior to, as a substitute for, or as an alternative to, and should be considered in conjunction with, the U.S. GAAP financial measures included within this press release and the company’s related earnings call. These non-GAAP financial measures may differ from similar measures used by other companies.

The Toro Company does not provide a quantitative reconciliation of the company’s projected range for adjusted diluted EPS for fiscal 2026 to diluted EPS, which is the most directly comparable GAAP measure, in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. The company’s adjusted diluted EPS guidance for fiscal 2026 excludes certain items that are inherently uncertain and difficult to predict, including certain non-cash, large and/or unpredictable charges and benefits; acquisitions and dispositions; legal judgments, settlements, or other matters; and tax positions. Due to the uncertainty of the amount or timing of these future excluded items, management does not forecast them for internal use and therefore cannot create a quantitative adjusted diluted EPS for fiscal 2026 to diluted EPS reconciliation without unreasonable efforts. A quantitative reconciliation of adjusted diluted EPS for fiscal 2026 to diluted EPS would imply a degree of precision and certainty as to these future items that does not exist and could be confusing to investors. From a qualitative perspective, it is anticipated that the differences between adjusted diluted EPS for fiscal 2026 to diluted EPS will consist of items similar to those described in the financial tables later in this release, including, for example and without limitation, certain non-cash, large, and/or unpredictable charges and benefits; acquisitions and dispositions; legal judgments, settlements, or other matters; and tax positions. The timing and amount of any of these excluded items could significantly impact the company’s diluted EPS for a particular period.

Forward-Looking Statements

This news release contains forward-looking statements, which are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s current assumptions and expectations of future events, and often can be identified by words such as “expect,” “strive,” “looking ahead,” “outlook,” “guidance,” “forecast,” “goal,” “optimistic,” “encourage,” “anticipate,” “continue,” “plan,” “estimate,” “project,” “target,” “improve,” “believe,” “become,” “should,” “could,” “will,” “would,” “possible,” "remain," “promise,” “may,” “likely,” “intend,” “can,” “seek,” “pursue,” “potential,” variations of such words or the negative thereof, and similar expressions or future dates. Forward-looking statements involve risks and uncertainties that could cause actual events and results to differ materially from those projected or implied. Forward-looking statements in this release include the company’s fiscal 2026 financial guidance, expectations regarding demand trends, our recent strategic acquisition, and the success of new products, supply chain stabilization and AMP, and other statements made under the "Outlook" section of this release. Particular risks and uncertainties that may affect the company’s operating results or financial position or cause actual events and results to differ materially from those projected or implied include: adverse worldwide economic conditions, including inflationary pressures and higher interest rates; the effect of abnormal weather patterns; customer, government and municipal revenue, budget spending levels and cash conservation efforts; loss of any substantial customer or strategic partnership; inventory adjustments or changes in purchasing patterns by customers; fluctuations in the cost and availability of commodities, components, parts, and accessories, including steel, engines, hydraulics, and resins; disruption at or in proximity to its facilities or in its manufacturing or other operations, or those in its distribution channel customers, mass retailers or home centers where its products are sold, or suppliers; risks associated with acquisitions and dispositions, including the company's recent acquisition of Tornado Infrastructure Equipment Ltd. and possible additional future impairment of goodwill or other intangible assets; impacts AMP and any future restructuring activities or productivity or cost savings initiatives; the effect of natural disasters, social unrest, war and global pandemics; the level of growth or contraction in its key markets; the company’s ability to develop and achieve market acceptance for new products; increased competition; the risks attendant to international relations, operations and markets; foreign currency exchange rate fluctuations; financial viability of and/or relationships with the company’s distribution channel partners; management of strategic partnerships, key customer relationships, alliances or joint ventures, including Red Iron Acceptance, LLC; impact of laws, regulations and standards, consumer product safety, accounting, taxation, trade, tariffs and/or antidumping and countervailing duties petitions, healthcare, and environmental, health and safety matters; unforeseen product quality problems; loss of or changes in executive management or key employees; the occurrence of litigation or claims, including those involving intellectual property or product liability matters; impact of increased scrutiny on its environmental, social, and governance practices; and other risks and uncertainties described in the company’s most recent annual report on Form 10-K, subsequent quarterly reports on Form 10-Q and other filings with the Securities and Exchange Commission. The company makes no commitment to revise or update any forward-looking statements in order to reflect events or circumstances occurring or existing after the date any forward-looking statement is made.

(Financial tables follow)

THE TORO COMPANY AND SUBSIDIARIES

Condensed Consolidated Statements of Earnings (Unaudited)

(Dollars and shares in millions, except per-share data)

  Three Months Ended

Six Months Ended

May 1, 2026

May 2, 2025

May 1, 2026

May 2, 2025

Net sales

$

1,424.7

$

1,317.9

$

2,461.0

$

2,312.9

Cost of sales

942.0

881.2

1,641.8

1,540.6

Gross profit

482.7

436.7

819.2

772.3

Gross margin

33.9

%

33.1

%

33.3

%

33.4

%

Selling, general and administrative expense

287.7

261.9

537.1

519.7

Operating earnings

195.0

174.8

282.1

252.6

Interest expense

(14.8

)

(15.8

)

(29.0

)

(30.8

)

Other income, net

3.2

9.7

17.2

13.0

Earnings before income taxes

183.4

168.7

270.3

234.8

Income tax provision

38.0

31.9

57.0

45.2

Net earnings

$

145.4

$

136.8

$

213.3

$

189.6

Basic net earnings per share of common stock

$

1.51

$

1.37

$

2.19

$

1.88

Diluted net earnings per share of common stock

$

1.50

$

1.37

$

2.18

$

1.88

Weighted-average number of shares of common stock outstanding — Basic

96.6

99.8

97.3

100.6

Weighted-average number of shares of common stock outstanding — Diluted

97.1

100.1

97.7

100.9

Segment Data (Unaudited)

(Dollars in millions)

  Three Months Ended

Six Months Ended

Segment net sales

May 1, 2026

May 2, 2025

May 1, 2026

May 2, 2025

Professional

$

1,106.6

$

1,014.1

$

1,930.6

$

1,782.9

Residential

310.4

297.4

516.4

518.4

Other

7.7

6.4

14.0

11.6

Total net sales*

$

1,424.7

$

1,317.9

$

2,461.0

$

2,312.9

*Includes international net sales of:

$

278.8

$

255.6

$

466.3

$

467.0

Three Months Ended

Six Months Ended

Segment earnings (loss) before interest and taxes

May 1, 2026

May 2, 2025

May 1, 2026

May 2, 2025

Professional

$

224.4

$

202.1

$

362.0

$

329.3

Residential

30.3

16.1

43.5

33.3

Other

(56.5

)

(33.7

)

(106.2

)

(97.0

)

Total segment earnings before interest and taxes

$

198.2

$

184.5

$

299.3

$

265.6

THE TORO COMPANY AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Unaudited)

(Dollars in millions)

  May 1, 2026

May 2, 2025

October 31, 2025

ASSETS

Cash and cash equivalents

$

180.4

$

176.5

$

341.0

Receivables, net

575.1

602.5

378.2

Inventories, net

923.4

1,119.8

920.8

Prepaid expenses and other current assets

81.3

80.1

65.1

Total current assets

1,760.2

1,978.9

1,705.1

Property, plant, and equipment, net

623.0

635.8

615.8

Goodwill

591.0

450.8

450.9

Other intangible assets, net

433.8

487.3

390.3

Right-of-use assets

115.7

110.9

114.7

Investment in finance affiliate

45.0

51.2

41.0

Deferred income taxes

120.7

58.6

105.8

Other assets

17.2

14.6

15.2

Total assets

$

3,706.6

$

3,788.1

$

3,438.8

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current portion of long-term debt and short-term borrowings

$

—

$

20.0

$

—

Accounts payable

551.8

516.0

367.6

Accrued liabilities

559.2

536.7

525.5

Short-term lease liabilities

20.2

18.5

19.3

Total current liabilities

1,131.2

1,091.2

912.4

Long-term debt, less current portion

1,016.8

1,077.1

921.5

Long-term lease liabilities

100.0

96.2

100.3

Deferred income taxes

19.9

0.6

0.8

Other long-term liabilities

70.6

46.4

50.5

Stockholders’ equity:

Common stock1

1.0

99.0

97.9

Retained earnings

1,386.2

1,419.6

1,390.5

Accumulated other comprehensive loss

(19.1

)

(42.0

)

(35.1

)

Total stockholders’ equity

1,368.1

1,476.6

1,453.3

Total liabilities and stockholders’ equity

$

3,706.6

$

3,788.1

$

3,438.8

  1 During the company’s second quarter ended May 1, 2026 the company amended its certificate of incorporation to change the par value of its preferred and common stock from $1.00 per share to $0.01 per share. This change has been adopted prospectively.

THE TORO COMPANY AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows (Unaudited)

(Dollars in millions)

  Six Months Ended

May 1, 2026

May 2, 2025

Cash flows from operating activities:

Net earnings

$

213.3

$

189.6

Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:

Non-cash income from finance affiliate

(7.8

)

(9.8

)

Distributions from finance affiliate, net

3.8

7.8

Depreciation of property, plant, and equipment

48.9

48.0

Amortization of other intangible assets

21.1

15.6

Stock-based compensation expense

12.5

9.8

Deferred income taxes1

(13.3

)

(11.9

)

Other

(3.4

)

0.9

Changes in operating assets and liabilities, net of the effect of acquisitions:

Receivables, net

(189.5

)

(141.6

)

Inventories, net

37.7

(78.7

)

Other assets1

6.2

63.2

Accounts payable

166.3

59.5

Other liabilities1

(2.3

)

(29.3

)

Net cash provided by operating activities

293.5

123.1

Cash flows from investing activities:

Purchases of property, plant, and equipment

(28.0

)

(38.4

)

Proceeds from sales of property, plant, and equipment

11.6

0.2

Acquisitions, net of cash received

(210.3

)

(4.2

)

Net cash used in investing activities

(226.7

)

(42.4

)

Cash flows from financing activities:

Borrowings under debt arrangements1

350.0

740.0

Repayments under debt arrangements1

(255.0

)

(565.0

)

Proceeds from exercise of stock options

37.4

1.3

Payments of withholding taxes for stock awards

(1.2

)

(1.8

)

Common stock repurchases

(285.1

)

(200.0

)

Dividends paid on common stock

(75.8

)

(76.3

)

Other

(2.7

)

(3.1

)

Net cash used in financing activities

(232.4

)

(104.9

)

Effect of exchange rates on cash and cash equivalents

5.0

1.2

Net decrease in cash and cash equivalents

(160.6

)

(23.0

)

Cash and cash equivalents as of the beginning of the fiscal period

341.0

199.5

Cash and cash equivalents as of the end of the fiscal period

$

180.4

$

176.5

  1 Presentation of prior year deferred income taxes has been conformed to the current year presentation. There was no change to net cash used in operating activities.

THE TORO COMPANY AND SUBSIDIARIES

Reconciliation of Non-GAAP Financial Measures (Unaudited)

(Dollars in millions, except per-share data)

  The following tables provide a reconciliation of the non-GAAP financial performance measures used in this press release and our related earnings call to the most directly comparable measures calculated and reported in accordance with U.S. GAAP for the three and six month periods ended May 1, 2026 and May 2, 2025:

  Adjusted Profit & Loss Statement

  Three Months Ended

Six Months Ended

May 1, 2026

May 2, 2025

May 1, 2026

May 2, 2025

Gross profit

$

482.7

$

436.7

$

819.2

$

772.3

Acquisition-related costs1

2.4

—

4.1

—

Productivity initiative2

7.0

3.7

15.4

7.5

Adjusted gross profit

$

492.1

$

440.4

$

838.7

$

779.8

Gross margin

33.9

%

33.1

%

33.3

%

33.4

%

Acquisition-related costs1

0.1

%

—

%

0.2

%

—

%

Productivity initiative2

0.5

%

0.3

%

0.6

%

0.3

%

Adjusted gross margin

34.5

%

33.4

%

34.1

%

33.7

%

Operating earnings

$

195.0

$

174.8

$

282.1

$

252.6

Acquisition-related costs1

3.5

—

5.7

—

Productivity initiative2

7.3

5.6

19.7

21.8

Adjusted operating earnings

$

205.8

$

180.4

$

307.5

$

274.4

Operating earnings margin

13.7

%

13.3

%

11.5

%

10.9

%

Acquisition-related costs1

0.2

%

—

%

0.2

%

—

%

Productivity initiative2

0.5

%

0.4

%

0.8

%

1.0

%

Adjusted operating earnings margin

14.4

%

13.7

%

12.5

%

11.9

%

Earnings before income taxes

$

183.4

$

168.7

$

270.3

$

234.8

Acquisition-related costs1

3.5

—

5.7

—

Productivity initiative2

11.5

5.7

14.9

22.2

Adjusted earnings before income taxes

$

198.4

$

174.4

$

290.9

$

257.0

Income tax provision

$

38.0

$

31.9

$

57.0

$

45.2

Acquisition-related costs1

0.7

—

1.2

—

Productivity initiative2

2.5

0.9

3.2

4.2

Tax impact of share-based compensation3

1.8

(0.2

)

1.5

(0.1

)

Adjusted income tax provision

43.0

32.6

62.9

49.3

Net earnings

$

145.4

$

136.8

$

213.3

$

189.6

Acquisition-related costs, net of tax1

2.8

—

4.5

—

Productivity initiative, net of tax2

9.0

4.8

11.7

18.0

Tax impact of share-based compensation3

(1.8

)

0.2

(1.5

)

0.1

Adjusted net earnings

$

155.4

$

141.8

$

228.0

$

207.7

Net earnings per diluted share

$

1.50

$

1.37

$

2.18

$

1.88

Acquisition-related costs, net of tax1

0.03

—

0.05

—

Productivity initiative, net of tax2

0.09

0.05

0.12

0.18

Tax impact of share-based compensation3

(0.02

)

—

(0.02

)

—

Adjusted net earnings per diluted share

$

1.60

$

1.42

$

2.33

$

2.06

Effective tax rate

20.7

%

18.9

%

21.1

%

19.3

%

Productivity initiative1

—

%

(0.1

)%

—

%

—

%

Tax impact of share-based compensation3

1.0

%

(0.1

)%

0.5

%

(0.1

)%

Adjusted effective tax rate

21.7

%

18.7

%

21.6

%

19.2

%

  1 On December 8, 2025, the company completed the acquisition of Tornado Infrastructure Equipment. Acquisition-related costs for the three and six month periods ended May 1, 2026 represent integration costs and amortization of the backlog intangible asset resulting from purchase accounting adjustments.

2 In the first quarter of fiscal 2024, the company launched the "Amplifying Maximum Productivity" or AMP initiative. The company considered the nature, frequency, and scale of this initiative compared to prior productivity initiatives when determining that the expenses associated with AMP, unlike prior productivity initiatives, are not common, normal, recurring operating expenses and are not representative of the company's ongoing business operations. Productivity initiative charges for the three and six month periods ended May 1, 2026 and May 2, 2025 primarily represent facility exit-related costs and gains, severance and termination benefits, compensation for fully-dedicated AMP personnel, third-party consulting costs, and product-line exit costs.

3 The accounting standards codification guidance governing employee stock-based compensation requires that any excess or deficient tax deduction for stock-based compensation be immediately recorded within income tax expense. Employee stock-based compensation activity, including the exercise of stock options, can be unpredictable and can significantly impact our net earnings, net earnings per diluted share, and effective tax rate. These amounts represent the discrete tax benefits recorded as excess tax deductions for stock-based compensation during the three and six month periods ended May 1, 2026 and May 2, 2025.

Organic Sales Growth

  Three Months Ended May 1, 2026

(Percentage change versus the prior year period)

Reported (GAAP) Net Sales Growth

Acquisitions & Divestitures

Foreign Exchange Impact1

Organic Sales Growth/ (Decrease) (Non-GAAP)

Professional

9.1

%

(2.4

)%

(0.7

)%

6.0

%

Residential

4.4

%

—

%

(0.3

)%

4.1

%

Other

20.3

%

—

%

—

%

20.3

%

Total

8.1

%

(1.8

)%

(0.6

)%

5.7

%

  1The foreign exchange impact to sales growth measures the change in sales between current and prior year periods using constant exchange rates.

Six Months Ended May 1, 2026

(Percentage change versus the prior year period)

Reported (GAAP) Net Sales Growth

Acquisitions & Divestitures

Foreign Exchange Impact1

Organic Sales Growth/ (Decrease) (Non-GAAP)

Professional

8.3

%

(2.3

)%

(0.6

)%

5.4

%

Residential

(0.4

)%

—

%

(0.3

)%

(0.7

)%

Other

20.7

%

—

%

—

%

20.7

%

Total

6.4

%

(1.8

)%

(0.5

)%

4.1

%

  1The foreign exchange impact to sales growth measures the change in sales between current and prior year periods using constant exchange rates.

Three Months Ended May 2, 2025

(Percentage change versus the prior year period)

Reported (GAAP) Net Sales Growth

Acquisitions & Divestitures

Foreign Exchange Impact1

Organic Sales Growth/ (Decrease) (Non-GAAP)

Professional

0.8

%

0.2

%

0.2

%

1.2

%

Residential

(11.4

)%

1.4

%

0.2

%

(9.8

)%

Other

(17.9

)%

—

%

—

%

(17.9

)%

Total

(2.3

)%

0.5

%

0.2

%

(1.6

)%

  1The foreign exchange impact to sales growth measures the change in sales between current and prior year periods using constant exchange rates.

Six Months Ended May 2, 2025

(Percentage change versus the prior year period)

Reported (GAAP) Net Sales Growth

Acquisitions & Divestitures

Foreign Exchange Impact1

Organic Sales Growth/ (Decrease) (Non-GAAP)

Professional

1.2

%

0.1

%

0.3

%

1.6

%

Residential

(10.0

)%

2.1

%

0.2

%

(7.7

)%

Other

(11.5

)%

—

%

—

%

(11.5

)%

Total

(1.6

)%

0.6

%

0.2

%

(0.8

)%

  1The foreign exchange impact to sales growth measures the change in sales between current and prior year periods using constant exchange rates.

Reconciliation of Non-GAAP Liquidity Measures

The company defines free cash flow as net cash provided by operating activities less purchases of property, plant and equipment. Free cash flow conversion percentage represents free cash flow as a percentage of net earnings. The company considers free cash flow and free cash flow conversion percentage to be non-GAAP liquidity measures that provide useful information to management and investors about the company's ability to convert net earnings into cash resources that can be used to pursue opportunities to enhance shareholder value, fund ongoing and prospective business initiatives, and strengthen the company's Consolidated Balance Sheets, after reinvesting in necessary capital expenditures required to maintain and grow the company's business. The following table provides a reconciliation of non-GAAP free cash flow and free cash flow conversion percentage to net cash provided by operating activities, which is the most directly comparable financial measure calculated and reported in accordance with U.S. GAAP, for the six month periods ended May 1, 2026 and May 2, 2025:

Six Months Ended

(Dollars in millions)

May 1, 2026

May 2, 2025

Net cash provided by (used in) operating activities

$

293.5

$

123.1

Less: Purchases of property, plant and equipment

28.0

38.4

Free cash flow

265.5

84.7

Net earnings

$

213.3

$

189.6

Free cash flow conversion percentage

124.5

%

44.7

%

Toro (TTC - Free Report) came out with quarterly earnings of $1.6 per share, beating the Zacks Consensus Estimate of $1.5 per share. This compares to earnings of $1.42 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +6.43%. A quarter ago, it was expected that this landscaping, maintenance and irrigation equipment maker would post earnings of $0.65 per share when it actually produced earnings of $0.74, delivering a surprise of +13.85%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Toro, which belongs to the Zacks Tools - Handheld industry, posted revenues of $1.42 billion for the quarter ended April 2026, surpassing the Zacks Consensus Estimate by 2.46%. This compares to year-ago revenues of $1.32 billion. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Toro shares have added about 15.5% since the beginning of the year versus the S&P 500's gain of 10.4%.

What's Next for Toro?While Toro has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Toro was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.24 on $1.17 billion in revenues for the coming quarter and $4.52 on $4.73 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Tools - Handheld is currently in the bottom 13% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the broader Zacks Consumer Discretionary sector, Trip.com (TCOM - Free Report) , has yet to report results for the quarter ended March 2026.

This travel services company is expected to post quarterly earnings of $0.85 per share in its upcoming report, which represents a year-over-year change of +3.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Trip.com's revenues are expected to be $2.33 billion, up 22% from the year-ago quarter.

The Toro Company (TTC) Q2 2026 Earnings Call Transcript

-

Announces new multi‑year sustainability goals to accelerate progress across global operations

BLOOMINGTON, Minn.--(BUSINESS WIRE)--The Toro Company (NYSE: TTC), a leading global provider of solutions for the outdoor environment, today released its fiscal 2025 Sustainability Impact Report. The annual report highlights the company’s continued focus and progress toward its strategic priorities while introducing new sustainability commitments to drive further impact. The full report can be found at www.thetorocompany.com/sustainability.

“We believe that sustainability is a shared journey—one that empowers our partners, customers and communities to thrive together,” said Richard M. Olson, chairman and chief executive officer of The Toro Company. “By advancing responsible practices and innovative solutions, we are committed to creating lasting positive impact for people and the planet, today and for generations to come.”

TTC’s strategy in corporate responsibility is grounded in a purpose of helping customers enrich the beauty, productivity and sustainability of the land, and organized around three core pillars of Product, People and Process. In 2025, TTC completed and achieved meaningful progress against its first set of multi‑year impact goals. Building on this momentum, TTC is announcing a new set of goals to guide continued action and results across its global operations. These newly adopted goals include:

By 2030, reduce absolute Scopes 1 and 2 GHG emissions by 15% compared to an FY25 baseline. By 2030, achieve a global Zero Waste to Landfill (ZWTL) target of 90% diversion of waste from landfill. Foster a safety culture that results in maintaining a Total Recordable Incident Rate (TRIR) at or below 1.0 through 2030. Deliver a more sustainable product portfolio every year through integrated New Product Development (NPD) sustainability gates. Driving Innovation

TTC’s approach to product innovation is shaped through close collaboration with customers, grounding every solution in real‑world needs with a focus on safety, resource efficiency, responsible sourcing and technological advancement. Notable achievements in fiscal 2025 include:

Created new sustainability checkpoints into the New Product Development (NPD) process to identify opportunities for delivering a more sustainable product portfolio each year. Introduced the Ditch Witch® JT21 directional drill to combine efficient drilling with reduced environmental impact, using small entry and exit pits to leave surrounding areas largely untouched. Strengthened our partnership with The Battery Network to enable battery collection and recycling at Lowe’s locations across 48 U.S. states, supporting the safe and responsible recycling of high‑energy batteries used in outdoor tools and equipment. Launched Toro® Spatial Adjust™ software for golf courses, transforming everyday turf management into powerful data-driven irrigation decisions through the collection of thousands of moisture readings during routine mowing. Expanded autonomous and battery-powered portfolio to help customers better leverage their labor resources, increase productivity and reduce engine emissions. Advancing Operational Efficiency

Across TTC’s portfolio of global brands remains an enduring commitment to operational excellence throughout the product life cycle. Guided by lean principles and continuous improvement, TTC advances sustainability, prioritizes safety and upholds a legacy of quality across the entire supply chain. Notable achievements in fiscal 2025 include:

Delivered significant productivity savings through initiatives targeting energy efficiency, reduced packaging waste, and enhanced ergonomic designs to improve workplace safety and productivity. Empowered employees at all levels to drive productivity through the Amplifying Maximum Productivity (AMP) initiative, resulting in more than 2,000 ideas submitted via the Productivity Generator tool to identify smarter ways to use time, resources and technology across operations. Launched a Zero Waste to Landfill (ZWTL) program aimed at streamlining waste processes across North American operations, diverting more than 18,000 tons of waste from landfill in 2025. The program continues to expand across locations and key waste streams, including hazardous, non-hazardous, liquid, solid, compostable, and recyclable materials. Strengthened governance and supply chain transparency by deploying a third-party platform across thousands of suppliers to modernize compliance data collection and centralize visibility on forced labor, conflict minerals, country of origin, and other emerging regulations. Empowering People

To meet the challenges of a rapidly changing world, TTC is committed to creating an environment where employees feel empowered, valued and prepared. By investing in development, encouraging engagement and advancing inclusion, TTC is building a resilient workforce that drives innovation and creates meaningful impact in the communities it serves. Notable achievements in fiscal 2025 include:

Achieved an approximate 57% reduction in Total Recordable Incident Rate (TRIR) compared to 2021 baseline, reflecting several years of focused work to emphasize near-miss reporting and proactive hazard identification. Awarded scholarships to nearly 100 students, investing in the next generation of leaders and promoting academic excellence for employees and their families. Partnered with Habitat for Humanity to support sustainable, affordable housing through employee volunteerism and in‑kind donations, including irrigation solutions and battery‑powered lawn equipment to help new homeowners care for their properties efficiently. Welcomed nearly 60 interns across U.S. locations into a variety of functions, offering hands-on experience that helps them explore career pathways and build professional networks within TTC. Expanded on-site medical services to seven key manufacturing locations to support employee health and productivity. The full sustainability report, which was prepared with reference to the Global Reporting Initiative (GRI) and Sustainability Accounting Standards Board (SASB), can be found at: www.thetorocompany.com/sustainability.

About The Toro Company

The Toro Company (NYSE: TTC) is a leading global provider of solutions for the outdoor environment including turf and landscape maintenance, snow and ice management, underground construction, rental and specialty construction, and irrigation and outdoor lighting solutions. With net sales of $4.5 billion in fiscal 2025, The Toro Company’s global presence extends to more than 125 countries through a family of brands that includes Toro, Ditch Witch, Exmark, BOSS, Ventrac, Tornado, HammerHead, American Augers, Spartan, Subsite, Radius, Hayter, Perrot, Unique Lighting Systems, Irritrol, and Lawn-Boy. Through constant innovation and caring relationships built on trust and integrity, The Toro Company and its family of brands have built a legacy of excellence by helping customers work on golf courses, sports fields, construction sites, public green spaces, commercial and residential properties and agricultural operations. For more information, visit www.thetorocompany.com.

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