Toro Company (the) · NYSE:TTC
Toro Company (the) — Q2 2025 Earnings Presentation
20 slides from Toro Company (the)'s earnings presentation, Jun 5, 2025
Slide 1: The Toro Company Q2 2025 Earnings Release
THE TORO COMPANY Q2 2025 EARNINGS RELEASE June 5, 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: Q2 2025 Key Messages
Q2 2025 Key Messages Delivered second-quarter *adjusted diluted EPS that exceeded our 1 expectations despite tariff headwinds, macroeconomic conditions, and a delayed start to spring Drove increased output and shipments in our golf and grounds 2 businesses where demand for our innovative products re
Slide 4: Tariff Takeaways
Tariff Takeaways Positioned well as a U.S. based manufacturer. Estimate tariff headwinds to be approximately 3 percent of our 2025 cost of goods sold. Competitive Advantages Mitigating Actions Manufacturing and Portfolio USMCA Qualification Optimization Primarily U.S. Supply Base Strategic Sourcing
Slide 5: Q2 2025 Other Notable Highlights
Q2 2025 Other Notable Highlights New BOSS Products Released at Work Truck Week® 2025 Including a Stainless-Steel Trip Edge V- Blade, new Cold Front Technology electrical system, and Smartlight4 headlights Expanded Electric Construction Portfolio Quiet with no exhaust emissions produced, each new pro
Slide 6: 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 7: Q2 Consolidated Results
Q2 Consolidated Results Highlighted by Professional segment growth and profitability improvement REPORTED ADJUSTED* Change from Change from Q2 25 Q2 24 Q2 25 Q2 24 Q2 24 Q2 24 Net Sales $1,317.9M $1,349.0M -2.3% $1,317.9M $1,349.0M -2.3% Gross Profit ($) $436.7M $453.0M -3.6% $440.4M $453.0M -2.8% G
Slide 8: Q2 Professional Segment Results
Q2 Professional Segment Results NET SALES SEGMENT EARNINGS MARGIN (in millions) +0.8% +90 bps $1,005.6 $1,014.1 19.9% 19.0% Q2 24 Q2 25 Q2 24 Q2 25 Increase was primarily driven by higher shipments of golf and Increase was primarily due to product mix, and productivity grounds products, partially of
Slide 9: Q2 Residential Segment Results
Q2 Residential Segment Results NET SALES SEGMENT EARNINGS MARGIN (in millions) -11.4% -540 bps 10.8% $335.6 $297.4 5.4% Q2 24 Q2 25 Q2 24 Q2 25 Decrease was primarily driven by lower shipments of walk power Decrease was largely driven by higher material, manufacturing, mowers, zero-turn mowers, and
Slide 10: Strong Balance Sheet and Resilient Free Cash Flow
Strong Balance Sheet and Resilient Free Cash Flow Free Cash Flow* Free Cash Flow Conversion* Leverage Ratio* (Six months ended) (Six months ended) (Trailing twelve months) In millions F24 F25 Goal: 100% over Target 1.6x time $95.6 Range: $84.7 1.0x- 45.6% 44.7% 2.0x Q2 24 Q2 25 Q2 24 Q2 25 Q2 25 Fre
Slide 11: Effective Capital Deployment
Effective Capital Deployment Consistent Priorities 2025 YTD Actions Invested ~$38M to fund new product investments, Capital expenditures supporting organic growth advanced manufacturing technologies, and capacity for 1 with high returns growth within existing manufacturing footprint Strategic approa
Slide 12: Q3 2025 Outlook Commentary
Q3 2025 Outlook Commentary (All on a year-over-year basis unless noted) Total Company Flat to Slightly Up Net Sales Professional Segment Up Mid Single-Digits Growth (%) Residential Segment Down High-Teens Adjusted Operating Total Company Similar Earnings Margin* (%) Professional Segment Slightly Hig
Slide 13: Updated Full-Year 2025 Guidance
Updated Full-Year 2025 Guidance See my comment – Guidance as of Updated Guidance as of need to have March 6, 2025 June 5, 2025 two columns (see 9 2022 Net Sales Growth (%) deck for Up 0% to 1% Flat to down 3% format – I’ve copied that Adjusted Gross Margin slide and Higher than 2024 Higher than 2024
Slide 14: Appendix
APPENDIX
Slide 15: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation contains certain non-GAAP financial measures, which are not calculated or presented in accordance with U.S. GAAP, as information supplemental and in addition to the most directly comparable financial measures calculated and presented in accordance with U
Slide 16: 16 Q2 2025 EARNINGS RELEASE THE TORO COMPANY
16 Q2 2025 EARNINGS RELEASE THE TORO COMPANY
Slide 17: 17 Q2 2025 EARNINGS RELEASE THE TORO COMPANY
17 Q2 2025 EARNINGS RELEASE THE TORO COMPANY
Slide 18: 18 Q2 2025 EARNINGS RELEASE THE TORO COMPANY
18 Q2 2025 EARNINGS RELEASE THE TORO COMPANY
Slide 19: 19 Q2 2025 EARNINGS RELEASE THE TORO COMPANY
19 Q2 2025 EARNINGS RELEASE THE TORO COMPANY
Slide 20: Leverage Ratio
Leverage Ratio ($ millions) Q3 24 Q4 24 Q1 25 Q2 25 Total Gross Debt $991.9 $921.8 $1,106.9 $1,097.1 $1,097.1 Earnings Before Income Taxes $144.2 $109.3 $66.1 $168.7 $488.3 Interest Expense $14.5 $14.5 $15.0 $15.8 $59.8 Depreciation and Amortization $30.9 $36.4 $32.1 $31.5 $130.9 EBITDA $189.6 $160.