Toro Company (the) · NYSE:TTC
Toro Company (the) — Q1 2026 Earnings Presentation
43 slides from Toro Company (the)'s earnings presentation, Mar 5, 2026
Slide 1: Investor Presentation Q1 Fiscal 2026
Investor Presentation March 5, 2026 Q1 Fiscal 2026
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: Quarterly Highlights: Q1 F26
Quarterly Highlights: Q1 F26 Delivered first-quarter sales and earnings growth that beat expectations Executed on the opportunity presented by snowfall in key markets which drove strong demand for snow and ice management products, leading to the outperformance Tornado acquisition contributed to Prof
Slide 4: Raising Full-Year Guidance
Raising Full-Year Guidance (All on a year-over-year basis unless noted) Previous Guidance Current Guidance Net Sales Growth (%) Up 2% to 5% Up 3% to 6.5% Professional Segment Net Sales Growth (%) Up Mid-Single Digits Up Mid-Single Digits Residential Segment Net Sales Growth (%) Down Low to Mid-Singl
Slide 5: Q2 F26 Guidance
Q2 F26 Guidance (All on a year-over-year basis unless noted) Net Sales Growth (%) Up Mid-Single Digits Professional Segment Net Sales Growth (%) Up Mid-Single Digits Residential Segment Net Sales Growth (%) Up Mid-Single Digits Adjusted Operating Earnings Margin* (%) Slightly Higher Professional Seg
Slide 6: Tariff Impact
Tariff Impact F26 Tariffs Mitigated Dollar for Dollar 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) • Strateg
Slide 7: 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 8: 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 9: 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 stockhold
Slide 10: A Foundation of Our Enterprise
A Foundation of Our Enterprise Strategic Priorities Consistent Financial Results 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 11: 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 12: Productivity Initiative
Productivity Focus Areas for Transformation Initiative Supply Base Annualized Savings Implemented Design-to-Value F26 Goal $125M+ Increased $95M $100M Route-to-Market Original Goal Program-to-Date F26 Goal Operational Efficiency Update Quarterly Demand Drivers Segment Overview Competitive Advantage
Slide 13: Near-Term Performance Expectations
Near-Term Performance Expectations Annual Net Sales Growth (%) 3% to 5% External Considerations Weather Conditions Adjusted Operating Earnings Margin (%) 13% to 15% Seasonality Consumer Confidence Annual Adjusted Diluted EPS Growth (%) 8% to 10% Interest Rates Macro Conditions Free Cash Flow (FCF) C
Slide 14: Balanced & Complementary Portfolio
Balanced & Complementary Portfolio Balanced 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% Constru
Slide 15: 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 meowne 10% Ho r Residential segment,~ 33% of our 19% % products are sold to homeowners. s 33 19% F25 Net Sales by End Market
Slide 16: 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 17: 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 18: Golf Global Market Momentum
Golf Global Market Momentum U.S. Golf Participation At-a-Glance Golf continues its strong global rise, with 2025 setting 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 outside North America sinc
Slide 19: 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. Update Quarterly Demand Drivers Segment Overvi
Slide 20: 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 Update Quarterly Demand Drivers Segment Overview Competitive Advantage Overview Portfolio
Slide 21: 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. Update Quarterly Demand Drivers Segment Overview
Slide 22: 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 23: 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 24: 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 25: 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 26: 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 27: 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 28: 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 29: 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 free cash flow reaching a record high in F25. Free cash flow conversion on track for third consecutive year above 110% in F26. Free Cash Flow* Free Cash Flow Conversion* Leverage Ratio*
Slide 30: 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 stockholders from F21 to F25. Consistent Priorities F26 YTD Actions Invested $11.5M to fund new product investments, advanced Capi
Slide 31: Notable Acquisitions
Notable Acquisitions F97 F19 F26 Market share leader in the Ditch Witch established Growing hydrovac industry landscape contractor industry The Toro Company as complements Ditch Witch “The Underground Authority” underground construction portfolio F14 F20 Versatile machines and attachments A leading
Slide 32: Appendix
Appendix March 5, 2026 Q1 Fiscal 2026
Slide 33: Our Portfolio of Brands
Our Portfolio of Brands Quarterly Overview Portfolio Demand Segment Competitive Financial Appendix 33 Update Drivers Overview Advantage Position
Slide 34: Manufacturing Locations
Manufacturing Locations . Although the Toro Company has a global footprint, over 90% of our manufacturing hours are attributable to North America operations. Quarterly Overview Portfolio Demand Segment Competitive Financial Appendix 34 Update Drivers Overview Advantage Position
Slide 35: Accounts Receivable & Floor Plan Financing
Accounts Receivable & Floor Plan Financing TTC’s accounts receivable balance consists of sales to mass channel partners, irrigation customers, and many of our international dealers and distributors Majority of US independent dealers and distributors take advantage of inventory floor plan financing p
Slide 36: Historical Net Sales
Historical Net Sales ($ 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 $4,510.4 Quarterly Overview Portfolio Demand Segment Competitive Financial Appendix 36 Update Drivers Overview Advantage P
Slide 37: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation contains certain non-GAAP financial measures, which are not calculated or presented in accordance with U.S. GAAP, as information supplemental and in addition to the most directly comparable financial measures calculated and presented in accordance with U
Slide 38: Adjusted Operating Earnings
Adjusted Operating Earnings ($ millions) F15 F16 F17 F18 F19 F20 F21 F22 F23 F24 F25 Operating Earnings $299.1 $333.4 $355.1 $373.1 $325.0 $426.4 $518.3 $575.7 $430.7 $533.3 $409.9 Acquisition-related costs - - - - $62.4 $6.2 - $4.0 $0.4 - - Management actions/ - - - - $16.3 $0.8 - - - $27.2 $48.1 p
Slide 39: Adjusted Effective Tax Rate
Adjusted Effective Tax Rate F15 F16 F17 F18 F19 F20 F21 F22 F23 F24 F25 Effective Tax Rate 30.7% 30.1% 24.2% 27.0% 14.9% 19.0% 18.0% 19.8% 17.7% 18.3% 16.3% Acquisition-related costs - - - - (0.3%) - - - - - - Management actions/ - - - - 0.1% - - - - (0.2%) - productivity initiative (AMP) Tax impact
Slide 40: 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 $0.42 productivity initiative (AMP) Tax impact of st
Slide 41: Free Cash Flow Generation
Free Cash Flow Generation ($ millions) F15 F16 F17 F18 F19 F20 F21 F22 F23 F24 F25 Operating Cash $249.6 $384.3 $360.7 $364.8 $337.4 $539.4 $555.5 $297.2 $306.8 $569.9 $662.0 Flow Capital Expenditures1 ($56.4) ($50.7) ($58.3) ($90.1) ($92.9) ($78.1) ($104.0) ($143.5) ($142.4) ($99.2) ($83.7) FCF $19
Slide 42: Return on Average Invested Capital (%)
Return on Average Invested Capital (%)* ($ 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 $2,367.5 $2,653.
Slide 43: Leverage Ratio – Trailing Twelve Months
Leverage Ratio – Trailing Twelve Months Trailing Twelve ($ milli n ) Q2 F25 Q3 F25 Q4 F25 Q1 F26 Months Gross Debt $1,097.1 $1,032.2 $921.5 $1,071.7 $1,071.7 Earnings Before Income Taxes $168.7 $57.8 $85.0 $86.9 $398.4 Acquisition-Related Costs - - - $2.2 $2.2 Productivity Initiative $5.7 $9.2 $20.