Toro Company (the) · NYSE:TTC
Toro Company (the) — Q1 2025 Earnings Presentation
32 slides from Toro Company (the)'s earnings presentation, Mar 6, 2025
Slide 1: The Toro Company Q1 2025 Earnings Release
THE TORO COMPANY Q1 2025 EARNINGS RELEASE March 6, 2025
Slide 2: Safe Harbor
Safe Harbor This presentation 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 an
Slide 3: Overview
Overview 3 Q1 2025 EARNINGS RELEASE THE TORO COMPANY
Slide 4: The Toro Company: Built on Strong Relationships and Our Legacy of Excellence
The Toro Company: Built on Strong OUR OUR OUR Relationships and PURPOSE VISION MISSION Our Legacy of To help our customers enrich To be the most trusted leader in To deliver superior innovation and to Excellence the beauty, productivity and sustainability solutions for the outdoor environment. deliv
Slide 5: Investment Thesis
Investment Thesis Well-positioned to win with deep expertise, 1 leading market share positions, and best-in- class distribution and service networks – all of which create high barriers to entry Attractive end markets, customer-centric 2 innovation, and steady replacement cycles drive future organic
Slide 6: Q1 2025 Key Messages
Q1 2025 Key Messages Delivered first-quarter *adjusted diluted EPS that exceeded our expectations despite below-average snowfall totals in key markets, 1 driven by our disciplined execution, the continued momentum of our Amplifying Maximum Productivity (“AMP”) initiative, and improved professional s
Slide 7: Q1 2025 Financial Highlights
Q1 2025 Financial Highlights (Year-over-year comparisons below) Decrease primarily driven by lower shipments of -0.7% compact utility loaders, snow products and portable power products, and the prior year Pope NET SALES Products divestiture, partially offset by increased DECLINE shipments of golf an
Slide 8: Q1 2025 Other Notable Highlights
Q1 2025 Other Notable Highlights The Toro Company is a leading Compelling Suite of Robotic Exclusive Partnership with provider of products Solutions at GCSAA Show TerraRad Announced and solutions for the outdoor Innovation leadership was apparent, First-of-its-kind, data-driven soil environment, inc
Slide 9: Amplifying Maximum Productivity (AMP)
Amplifying Maximum Productivity (“AMP”) Significant productivity initiative expected to deliver at least $100M incremental annual cost savings by 2027, a portion of which the company intends to prudently reinvest Annualized Savings Implemented Focus Areas for Transformation $100M+ Supply Base $64M D
Slide 10: Financials
Financials 10 Q1 2025 EARNINGS RELEASE THE TORO COMPANY
Slide 11: Q1 Consolidated Results
Q1 Consolidated Results Highlighted by Professional segment growth and profitability improvement REPORTED ADJUSTED* Change from Change from Q1 25 Q1 24 Q1 25 Q1 24 Q1 24 Q1 24 Net Sales $995.0M $1,001.9M -0.7% $995.0M $1,001.9M -0.7% Gross Profit ($) $335.6M $344.5M -2.6% $339.4M $344.5M -1.5% Gross
Slide 12: Q1 Professional Segment Results
Q1 Professional Segment Results NET SALES SEGMENT EARNINGS RATE (in millions) (as a percentage of net sales) +1.6% +160 bps 16.5% $756.5 $768.8 14.9% Q1 24 Q1 25 Q1 24 Q1 25 Increase was primarily driven by higher shipments of golf and Increase was primarily due to net sales leverage, product mix, g
Slide 13: Q1 Residential Segment Results
Q1 Residential Segment Results NET SALES SEGMENT EARNINGS RATE (in millions) (as a percentage of net sales) -8.0% -200 bps $240.1 9.8% $221.0 7.8% Q1 24 Q1 25 Q1 24 Q1 25 Decrease was primarily driven by lower shipments of snow products and portable power products, the prior year Pope Decrease was l
Slide 14: Strong Balance Sheet and Resilient Free Cash Flow
Strong Balance Sheet and Resilient Free Cash Flow Free Cash Flow* Free Cash Flow Conversion* Gross Debt to EBITDA Ratio* (Three months ended) (Three months ended) In millions Goal: 100% over Target 1.6x F24 F25 time Range: Q1 24 Q1 25 1.0x- Q1 24 Q1 25 2.0x ($67.7) (128%) (172%) ($111.3) Q1 25 Free
Slide 15: Effective Capital Deployment
Effective Capital Deployment Consistent Priorities 2025 YTD Actions Invested ~$19M to fund new product investments, Capital expenditures supporting organic growth advanced manufacturing technologies, and capacity for 1 with high returns growth within existing manufacturing footprint Strategic approa
Slide 16: Q2 2025 Outlook Commentary
Q2 2025 Outlook Commentary** (All on a year-over-year basis unless noted) Total Company Similar Net Sales Professional Segment Up Low Single-Digits Growth (%) Residential Segment Down Mid Single-Digits Adjusted Operating Total Company Slightly Lower Earnings Margin* (%) Professional Segment Similar
Slide 17: Full-Year 2025 Guidance
Full-Year 2025 Guidance*** See my Maintained Guidance Initially comment – Introduced on December 18, need to have 2024 two columns (see 9 2022 Net Sales Growth (%) deck for Up 0% to 1% format – I’ve copied that Adjusted Gross Margin slide and Higher than 2024 inserted right after this for Adjusted O
Slide 18: Well Positioned to Win
Well Positioned to Win 1 Leadership in attractive end-markets Brand heritage delivering excellence and 2 brand recognition creating trust Innovation synergies leveraged across 3 product categories Deep long-term customer and channel 4 relationships 5 Disciplined execution 6 Strong balance sheet 18 Q
Slide 19: Appendix
APPENDIX
Slide 20: Order Backlog
Order backlog increased sequentially from the ~$1.2B at 1 the end of 2024, due to normal seasonal trends Remains elevated compared to historical levels, driven by 2 sustained demand in underground construction, and golf and grounds businesses Order backlog has improved from ~$2B at the end of Order
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Slide 27: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation contains certain non-GAAP financial measures, which are not calculated or presented in accordance with U.S. GAAP, as information supplemental and in addition to the most directly comparable financial measures calculated and presented in accordance with U
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Slide 32: Gross Debt to EBITDA Ratio
Gross Debt to EBITDA Ratio ($ millions) Q2 24 Q3 24 Q4 24 Q1 25 Total Gross Debt $1,016.8 $991.9 $921.8 $1,106.9 $1,106.9 Earnings Before Income Taxes $179.2 $144.2 $109.3 $66.1 $498.8 Interest Expense $16.7 $14.5 $14.5 $15.0 $60.7 Depreciation and Amortization $30.2 $30.9 $36.4 $32.1 $129.6 EBITDA