Toro Company (the) · NYSE:TTC
Toro Company (the) — Q4 2025 Earnings Presentation
46 slides from Toro Company (the)'s earnings presentation, Dec 17, 2025
Slide 1: Investor Presentation Q4 Fiscal 2025
Investor Presentation December 17, 2025 Q4 Fiscal 2025
Slide 2: Note on Forward-looking Statements and Non-GAAP Financial Measures
Note on Forward-looking Statements and Non-GAAP Financial Measures 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 cu
Slide 3: The Toro Company
The Toro Company Built on Strong Relationships and Our Legacy of Excellence Industries We Serve Golf, Sports Fields & Grounds: Specialized/precision equipment, large-area turf maintenance, smart irrigation systems, lighting Landscape Contractors: Turf maintenance, snow and ice management, irrigation
Slide 4: Innovative Solutions & Brand Portfolio
Innovative Solutions & Brand Portfolio Brand Leadership #1 or #2 in Our Key Markets • Over 110 years of innovation and deep customer relationships in 125+ countries. • Wide range of innovative solutions for professional and residential markets. • Innovations in gas, battery, electric, hybrid, smart-
Slide 5: Investment Thesis
Investment Thesis Attractive end markets and customer-driven innovation. We have a proven track record of executing Deep expertise, leading market share, and best-in-class on targets and are well positioned to create distribution & service networks create high barriers to entry. meaningful sharehold
Slide 6: A Foundation of Consistent Financial Results
A Foundation of Our Enterprise Consistent Financial Results Strategic Priorities ACCELERATING PROFITABLE GROWTH +22.8% +7.8% +10.7% AVERAGE NET SALES ADJUSTED DRIVING ROIC*,** CAGR* EPS CAGR*,** PRODUCTIVITY AND OPERATIONAL EXCELLENCE EMPOWERING PEOPLE *Calculation and statements refer to TTC result
Slide 7: F25 Financial Highlights
F25 Financial Highlights Return on Invested Professional Strength Free Cash Flow Capital Allocation Capital • Continued strength in the • Record *free cash flow of • Dividends per share • ROIC* of 17.0%, up professional segment, driven $578M, up from $471M in F24 increased 6% year-over-year from 16.
Slide 8: Productivity Initiatives
Productivity Focus Areas for Transformation Initiatives Supply Base Annualized Savings Implemented Design-to-Value F26 Goal $125M+ Increased $86M $100M Route-to-Market Original Goal Program-to-Date F26 Goal Operational Efficiency Demand Segment Competitive Financial Quarterly Overview Portfolio Appe
Slide 9: Long-Term Performance Expectations
Long-Term Performance Expectations Factors that Could Affect Annual Net Sales Growth (%) 3% to 5% Business Performance Weather Conditions Adjusted Operating Earnings Margin* (%) 13% to 15% Seasonality Consumer Confidence Annual Adjusted Diluted EPS* Growth (%) 8% to 10% Interest Rates Macro Conditio
Slide 10: Diversified & Complementary Portfolio
Diversified & Complementary Portfolio Diverse portfolio reduces reliance on weather conditions. By Segment By End Market Operating Margins & Professional Professional Growth Residential F15 30% 30% 36% Golf 18.5% Net Sales Agricultural Micro Irrigation $2.39B 70% Underground & Specialty 6% 24% Const
Slide 11: Global Customer Base
Global Customer Base F25 Net Sales By Geographic Market By Product Type By Customer Approximately half the landscape & grounds end market is sold to homeowners. Including the 10% Residential segment,~ 33% of our 19% products are sold to homeowners. 19% 29% F25 Net Sales by End Market 81% 90% Residen
Slide 12: Infrastructure Investments & Strategic Expansion
Infrastructure Investments Recent Strategic Acquisition & Strategic Expansion Tornado Infrastructure Equipment A leader in vacuum excavation trucks designed to safely excavate around critical infrastructure using a combination of high-pressure water or air, and a powerful vacuum system to minimize t
Slide 13: Golf Global Market Momentum
Golf Global Market Momentum Golf Participation At-a-Glance Golf continues its strong global rise, with 2024 U.S. rounds played, projected to set the record for the most U.S. rounds played in a single year. International momentum is equally impressive, marked by a 44% increase in on-course golfers ou
Slide 14: Professional Segment Overview
Professional Segment Overview 2025 Geographic Net Sales Profile F15 F25 70% 81% 21% OF TOTAL COMPANY NET SALES OF TOTAL COMPANY NET SALES $1.64B $3.62B 79% NET SALES NET SALES 18.8% 19.4% SEGMENT EARNINGS MARGIN SEGMENT EARNINGS MARGIN U.S. Outside U.S. Demand Segment Competitive Financial Quarterly
Slide 15: Continuous Pipeline of New Product Introductions
Continuous Pipeline of New Product Introductions Investing in strategic technology to fuel customer-valued innovations Help customers increase productivity Address labor challenges Achieve sustainability goals Demand Segment Competitive Financial Quarterly Overview Portfolio Appendix 15 Drivers Over
Slide 16: Residential Segment Overview
Residential Segment Overview 2025 Geographic Net Sales Profile F15 F25 14% 30% 19% OF TOTAL COMPANY NET SALES OF TOTAL COMPANY NET SALES $0.73B $0.86B 86% NET SALES NET SALES 11.7% 4.2% SEGMENT EARNINGS MARGIN SEGMENT EARNINGS MARGIN U.S. Outside U.S. Demand Segment Competitive Financial Quarterly O
Slide 17: Residential Segment Strengths
Residential Segment Strengths Strong Brands Expansive Channel Innovative Solutions America’s #1 Walk Mower 8,000+ Mass Retailer Battery Power and Snow Blower Brand Partnership Locations Professional Features Powerful Brand Recognition 4,000+ Independent Dealers Globally Robotics Market Share Leader
Slide 18: Residential Products
Residential Products Well-Positioned for Future Growth With a Full Suite of Offerings for Homeowners Designed for Urban, Suburban and Large Acreage Homeowners Zero Emission Solutions: 75+ Tools for Homeowners Fully Interchangeable Flex Force Battery System Zero Turn Mowers with Pro DNA Extensive Qua
Slide 19: Synergies Across Professional & Residential Segments
Synergies Across Professional & Residential Segments Regular equipment replacement cycles drive predictable sales • Typical turf equipment cycle is ~3 to 5 years for contractors • Typical lease duration for golf equipment is ~3 to 4 years • Typical residential equipment replacement is ~7 to 10 years
Slide 20: Innovation Across the Portfolio
Innovation Across the Portfolio We don't just make products, we solve problems All of our solutions are engineered, field tested and refined to ensure the highest standards of performance, reliability and safety Alternative Power Smart Connected Autonomous & Electrification Products Solutions • Zero
Slide 21: Leadership Through Innovation
Leadership Through Innovation R&D Investment and % of Net Sales* Vitality Index** $180 $174 $173 5.0% $162 $160 $156 $141 $140 4.0% $124 35% $120 $109 3.0% $100 $80 $84 $74 $77 $80 2.0% $60 $40 1.0% $20 $0 0.0% F15 F16 F17 F18 F19 F20 F21 F22 F23 F24 F25 F15 F16 F17 F18 F19 F20 F21 F22 F23 F24 F25 O
Slide 22: AI-Driven Productivity & Innovation
AI-Driven Productivity & Innovation TTC’s AI TerrAIn strategy responsibly integrates AI Our internal AI and large language models automate manual into our process. work, help predict outcomes, and boost productivity. Product development & testing Quality improvement & warranty automation Customer re
Slide 23: Sustainability Initiatives
Sustainability Initiatives Reduced Total Recordable Injury Rate by over 50% Surpassing our F25 Sustainability People Goal Focus Areas 18% Total Recordable 32% Lost Working Days Rate Product People Process Injury Rate • Design & innovation • Safety • Energy & emissions 0.92 • Raw material extraction
Slide 24: Strong Balance Sheet and Resilient Free Cash Flow
Strong Balance Sheet and Resilient Free Cash Flow Cash flow generation continues to be a source of strength, with F25 free cash flow conversion* significantly exceeding our previous guidance of 110%. Free Cash Flow* Free Cash Flow Conversion* Leverage Ratio* (Twelve months ended) (Twelve months ende
Slide 25: Capital Allocation Strategy
Capital Allocation Strategy Balanced approach to capital allocation has resulted in strategic investments driving significant growth and the return of more than $1.3B to shareholders over the last 5 years. Consistent Priorities F25 YTD Actions Invested $83.7M to fund new product investments, advance
Slide 26: Notable Acquisitions
Notable Acquisitions F97 F19 F26 Market share leader in the Ditch Witch established Growing hydrovac industry landscape contractor industry The Toro Company as complements Ditch Witch “The Underground Authority” underground construction portfolio F14 F20 Versatile machines and attachments A leading
Slide 27: Tariff Impact Mitigated 100%
Tariff Impact Mitigated 100% F25 Margins Maintained Competitive Advantages Mitigating Actions Estimate F26 Tariff Headwinds to be Approximately $100 Million* • U.S. Based Manufacturer • Manufacturing & Portfolio Optimization • Primarily U.S. Supply Base Tariff Costs by Year ($, millions) • Strategic
Slide 28: Major Components of Cost of Sales
Major Components Sourcing Actions of Cost of Sales Enhanced supply chain transparency F25 Cost of Sales Diversifying sourcing strategies and supplier relationships Labor, Depreciation and Drive/Power Other Materials Systems Strengthening compliance and trade programs Enhancing site/plant flexibility
Slide 29: Quarterly Highlights: Q4 F25
Quarterly Highlights: Q4 F25 Delivered fourth-quarter net sales and adjusted diluted EPS that beat expectations* Continued innovation and increased output drove higher shipments in our underground construction business where demand remains robust Promising start to the winter season drove strong dem
Slide 30: Full-Year F26 Guidance
Full-Year F26 Guidance (All on a year-over-year basis unless noted) Net Sales Growth (%) Up 2% to 5% Professional Segment Net Sales Growth (%) Up Mid-Single Digits Residential Segment Net Sales Growth (%) Down Low to Mid-Single Digits Adjusted Gross Margin* (%) Higher Adjusted Operating Earnings Mar
Slide 31: Q1 F26 Guidance
Q1 F26 Guidance (All on a year-over-year basis unless noted) Net Sales Growth (%) Up Slightly Professional Segment Net Sales Growth (%) Up Mid-Single Digits Residential Segment Net Sales Growth (%) Down High-Teens Adjusted Operating Earnings Margin* (%) Lower Professional Segment Earnings Margin (%)
Slide 32: Appendix
Appendix December 17, 2025 Q4 Fiscal 2025
Slide 33: Our Portfolio of Brands
Our Portfolio of Brands Demand Segment Competitive Financial Quarterly Overview Portfolio Appendix 33 Drivers Overview Advantage Position Update
Slide 34: Manufacturing Locations
Manufacturing Locations . Although the Toro Company has a global footprint, over 90% of our manufacturing hours are attributable to North America operations. Demand Segment Competitive Financial Quarterly Overview Portfolio Appendix 34 Drivers Overview Advantage Position Update
Slide 35: Accounts Receivable & Floor Plan Financing
Accounts Receivable & Floor Plan Financing TTC’s accounts receivable balance consists of sales to mass channel partners, irrigation customers, and many of our international dealers and distributors Majority of US independent dealers and distributors take advantage of inventory floor plan financing p
Slide 36: Historical Net Sales
Historical Net Sales ($ millions) F15 F16 F17 F18 F19 F20 F21 F22 F23 F24 F25 Net Sales $2,390.9 $2,392.2 $2,505.2 $2,618.7 $3,138.1 $3,378.8 $3,959.6 $4,514.7 $4,553.2 $4,583.8 $4,510.4 Demand Segment Competitive Financial Quarterly Overview Portfolio Appendix 36 Drivers Overview Advantage Position
Slide 37: 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
Slide 38: Adjusted EPS
Adjusted EPS F15 F16 F17 F18 F19 F20 F21 F22 F23 F24 F25 GAAP EPS $1.78 $2.06 $2.41 $2.50 $2.53 $3.03 $3.78 $4.20 $3.13 $4.01 $3.17 Acquisition-related costs - - - - $0.47 $0.05 - $0.03 - - - Management actions/ - - - - $0.13 $0.01 - - $0.04 $0.19 $0.42 productivity initiative (AMP) Tax impact of st
Slide 39: Leverage Ratio – Trailing Twelve Months
Leverage Ratio – Trailing Twelve Months ($ millions) Q1 F25 Q2 F25 Q3 F25 Q4 F25 F25 Total Gross Debt $1,106.9 $1,097.1 $1,032.2 $921.5 $921.5 Adjusted Earnings Before Income Taxes* $82.6 $174.4 $148.1 $105.3 $510.4 Interest Expense $15.0 $15.8 $15.1 $13.2 $59.1 Depreciation and Amortization $32.1
Slide 40: Leverage Ratio – Last Five Years
Leverage Ratio – Last Five Years ($ millions) F21 F22 F23 F24 F25 Gross Debt $691.2 $990.8 $1,031.5 $921.8 $921.5 Adjusted Earnings Before Income Taxes* $488.5 $556.5 $557.2 $535.9 $510.4 Interest Expense $28.7 $35.7 $58.7 $61.9 $59.1 Depreciation and Amortization $99.3 $108.8 $119.2 $128.2 $142.9
Slide 41: Return on Average Invested Capital (%)
Return on Average Invested Capital (%)* ($ in millions) F15 F16 F17* F18* F19* F20* F21* F22* F23* F24* F25* Adj. Op. Earnings* $207.2 $233.7 $249.3 $290.6 $325.8 $343.3 $407.6 $462.6 $467.5 $455.0 $443.1 (1-Adj. Tax Rate) Average Quarterly $852.7 $910.1 $935.4 $944.0 $1,437.0 $1,910.3 $1,962.6 $2,3
Slide 42: Free Cash Flow Generation
Free Cash Flow Generation ($ in millions) F15 F16 F17 F18 F19 F20 F21 F22 F23 F24 F25 Operating Cash Flow $249.6 $384.3 $360.7 $364.8 $337.4 $539.4 $555.5 $297.2 $306.8 $569.9 $662.0 Capital Expenditures ($56.4) ($50.7) ($58.3) ($90.1) ($92.9) ($78.1) ($104.0) ($143.5) ($142.4) ($99.2) ($83.7) FCF $
Slide 43: Reconciliation of Non-GAAP Financial Measures
The Toro Company & Subsidiaries Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in millions, except per-share data) The following table provides a reconciliation of the non-GAAP financial performance measures used in this press release and the related earnings call to the most dir
Slide 44: Reconciliation of Non-GAAP Financial Measures
The Toro Company & Subsidiaries Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in millions, except per-share data) The following table provides a reconciliation of the non-GAAP financial performance measures used in this press release and the related earnings call to the most dir
Slide 45: Reconciliation of Non-GAAP Financial Measures
The Toro Company & Subsidiaries Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in millions, except per-share data) The following table provides a reconciliation of the non-GAAP financial performance measures used in this press release and the related earnings call to the most dir
Slide 46: Reconciliation of Non-GAAP Liquidity Measures
The Toro Company & Subsidiaries 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, net of proceeds from insurance claim. Free cash flow conversion percentage represents free c