Toro Company (the) · NYSE:TTC
Toro Company (the) — The Toro Company — Q3 2025 Earnings Presentation
20 slides from Toro Company (the)'s earnings presentation, Sep 4, 2025
Slide 1: The Toro Company Q3 2025 Earnings Release
THE TORO COMPANY Q3 2025 EARNINGS RELEASE September 4, 2025
Slide 2: Cautionary Note
Cautionary Note 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 event
Slide 3: Q3 2025 Key Messages
Q3 2025 Key Messages Delivered third-quarter *adjusted diluted EPS that exceeded our 1 expectations despite persistent homeowner caution due to high interest rates and tariffs Continued innovation and increased output drove higher shipments 2 in our underground construction and golf and grounds busi
Slide 4: Tariff Takeaways
Tariff Takeaways Estimate fiscal 2025 tariff headwinds to be approximately **$70 million ($45 million incremental in 2025), down from prior estimate of approximately **$90 million ($65 million incremental in 2025). Competitive Advantages Mitigating Actions Manufacturing and Portfolio USMCA Qualifica
Slide 5: Automation Lineup
Automation Lineup Toro GeoLink Mow Autonomous Fairway Mower that addresses golf course labor shortages and budget constraints by increasing productivity and providing more consistent results Exmark Turf Tracer with XiQ Autonomous commercial mower that combats labor challenges faced by landscape cont
Slide 6: Q3 2025 Other Notable Highlights
Q3 2025 Other Notable Highlights Toro Spatial Adjust Ventrac 45RC Tractor Irrigation Control Software Offers dual operation modes to meet the Paired with turfRad moisture sensing technology operator's needs on steep terrain – whether has the potential to transform golf course seated on the mower or
Slide 7: Amplifying Maximum Productivity ("AMP")
Amplifying Maximum Productivity (“AMP”) Significant productivity initiative expected to deliver at least $100M incremental annualized cost savings by fiscal 2027, a portion of which the company intends to prudently reinvest Annualized Savings Implemented Focus Areas for Transformation $100M+ Supply
Slide 8: Q3 Consolidated Results
Q3 Consolidated Results Operating Performance Driven By Strength in Underground Construction and Golf & Grounds REPORTED ADJUSTED* Change from Change from Q3 25 Q3 24 Q3 25 Q3 24 Q3 24 Q3 24 Net Sales $1,131.3M $1,156.9M -2.2% $1,131.3M $1,156.9M -2.2% Gross Profit ($) $381.8M $402.8M -5.2% $389.0M
Slide 9: Q3 Professional Segment Results
Q3 Professional Segment Results NET SALES SEGMENT EARNINGS MARGIN (in millions) +5.7% +250 bps $930.8 21.3% $880.9 18.8% Q3 24 Q3 25 Q3 24 Q3 25 Increase was primarily driven by higher shipments of Increase was primarily due to productivity improvements, net underground construction and golf and gro
Slide 10: Q3 Residential Segment Results
Q3 Residential Segment Results NET SALES SEGMENT EARNINGS MARGIN (in millions) -27.9% -1030 bps 12.2% $267.5 $192.8 1.9% Q3 24 Q3 25 Q3 24 Q3 25 Decrease was largely driven by lower net sales volume, higher material and manufacturing costs, inventory valuation Decrease was primarily driven by lower
Slide 11: Strong Balance Sheet and Free Cash Flow
Strong Balance Sheet and Free Cash Flow Free Cash Flow* Free Cash Flow Conversion* Leverage Ratio* (Nine months ended) (Nine months ended) (Trailing twelve months) In millions F24 F25 90.0% 1.7x $291.9 82.2% Target $270.5 Range: 1.0x- 2.0x Q3 24 Q3 25 Q3 24 Q3 25 Q3 25 Free cash flow conversion incr
Slide 12: Effective Capital Deployment
Effective Capital Deployment Consistent Priorities 2025 YTD Actions Invested $57.0M to fund new product investments, Capital expenditures supporting organic growth advanced manufacturing technologies, and capacity for 1 with high returns growth within existing manufacturing footprint Strategic appro
Slide 13: Updated Full-Year 2025 Guidance
Updated Full-Year 2025 Guidance See my comment – Guidance as of Updated Guidance as of need to have June 5, 2025 September 4, 2025 two columns (see 9 2022 At lower end of flat to Net Sales Growth (%) deck for Flat to down 3% down 3% format – I’ve copied that Adjusted Gross Margin slide and Higher th
Slide 14: Appendix
APPENDIX
Slide 15: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation contains certain non-GAAP financial measures, which are not calculated or presented in accordance with U.S. GAAP, as information supplemental and in addition to the most directly comparable financial measures calculated and presented in accordance with U
Slide 16: 16 Q3 2025 EARNINGS RELEASE THE TORO COMPANY
16 Q3 2025 EARNINGS RELEASE THE TORO COMPANY
Slide 17: 17 Q3 2025 EARNINGS RELEASE THE TORO COMPANY
17 Q3 2025 EARNINGS RELEASE THE TORO COMPANY
Slide 18: 18 Q3 2025 EARNINGS RELEASE THE TORO COMPANY
18 Q3 2025 EARNINGS RELEASE THE TORO COMPANY
Slide 19: 19 Q3 2025 EARNINGS RELEASE THE TORO COMPANY
19 Q3 2025 EARNINGS RELEASE THE TORO COMPANY
Slide 20: Leverage Ratio
Leverage Ratio ($ millions) Q4 24 Q1 25 Q2 25 Q3 25 Total Gross Debt $921.8 $1,106.9 $1,097.1 $1,032.2 $1,032.2 Earnings Before Income Taxes $109.3 $66.1 $168.7 $57.8 $401.9 Interest Expense $14.5 $15.0 $15.8 $15.1 $60.4 Depreciation and Amortization $36.4 $32.1 $31.5 $32.2 $132.2 EBITDA $160.2 $113