December 17, 2025
Q4 Fiscal 2025
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 current assumptions and expectations of future events and often can be identified by words such as "believe," "expect," "intend," "forward," "future," "goal," "guidance," "improve," "may," "outlook," "should," "target" and "would," variations of such words or the negative thereof, and similar expressions or future dates. Forward-looking statements in this presentation include our fiscal 2026 financial guidance and expectations regarding demand trends, our ability to mitigate tariff headwinds, timing of operating cash flow generation, and AMP. Forward-looking statements involve risks and uncertainties that could cause actual events and results to differ materially from those projected or implied. Such risks and uncertainties include: adverse worldwide economic conditions; the effect of abnormal weather patterns; customer, government and municipal revenue, budget spending levels and cash conservation efforts; loss of any substantial customer; inventory adjustments or changes in purchasing patterns by customers; fluctuations in the cost and availability of commodities, components, parts, and accessories; disruption at or in proximity to our facilities or certain third parties; risks associated with acquisitions and dispositions; impacts of our AMP initiative and any future restructuring activities or productivity or cost savings initiatives; geopolitical factors and government policies and actions with respect to global trade, tariffs, U.S. trade policy and trade agreements; and other risks and uncertainties described in our most recent annual report on Form 10-K, subsequent quarterly reports on Form 10-Q or current reports on Form 8-K, and other filings with the Securities and Exchange Commission. We make no commitment to revise or update any forward-looking statements
in order to reflect events or circumstances occurring or existing after the date of this presentation.
This presentation also contains non-GAAP financial measures and more information about our use of such non-GAAP financial measures, as well as a reconciliation of the most directly comparable historical U.S. GAAP financial measures to the corresponding historical non-GAAP financial measures, which can be found in our related financial filings in the section titled "Non-GAAP Financial Measures."
All financial results contained within this presentation are based on most recent fiscal quarter and fiscal year-end figures.
Investor Presentation • December 17, 2025 • 2
The Toro CompanyBuilt 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, lighting, AI-powered software
Homeowners: Turf maintenance for homeowners with urban, suburban
& large acreage properties, battery-powered equipment, snow removal, irrigation
Underground Construction: Infrastructure construction, trenchless rehab & replacement, locating & guiding
Specialty Construction: Versatile equipment for contractors, rental equipment, electric indoor construction
Agriculture: Micro irrigation systems, irrigation automation
PURPOSE
To help our customers enrich the beauty, productivity and sustainability of the land.
VISION
To be the most trusted leader in solutions for the outdoor environment. Every day. Everywhere.
MISSION
To deliver superior innovation and to deliver superior customer care.
Overview Portfolio Demand
Drivers
Segment Overview
Competitive Advantage
Financial Position
Quarterly Update
Appendix 3
Brand Leadership
#1 or #2 in Our Key MarketsInnovative Solutions & Brand Portfolio
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-connected, and autonomous solutions.
Robust balance sheet enables continued investments
Overview
Portfolio
Demand
Drivers
Segment
Overview
Competitive
Advantage
Financial
Position
Quarterly
Update
Appendix
4
Investment Thesis Attractive end markets and customer-driven innovation.
We have a proven track record of executing on targets and are well positioned to create meaningful shareholder value over the next five years.
Deep expertise, leading market share, and best-in-class distribution & service networks create high barriers to entry.
Steady replacement cycles drive future organic growth. Consistent financial performance and cash flow generation. Strategic investments and disciplined capital allocation.
Expanded portfolio and reach in fast-growing industries, providing significant runway for future growth.
Overview Portfolio Demand
Drivers
Segment Overview
Competitive Advantage
Financial Position
Quarterly Update
Appendix 5
A Foundation of
Consistent Financial Results
Our Enterprise Strategic Priorities
ACCELERATING PROFITABLE GROWTH
+22.8%AVERAGE
ROIC*,**
+7.8%NET SALES CAGR*
+10.7%DRIVING PRODUCTIVITY AND OPERATIONAL EXCELLENCE
ADJUSTED EPS CAGR*,**
EMPOWERING PEOPLE
*Calculation and statements refer to TTC results from F15 to F25; CAGR = Compound Annual Growth Rate
**Non-GAAP Measures: refer to the Appendix of this presentation for additional information and reconciliation
Overview
Portfolio
Demand
Drivers
Segment
Overview
Competitive
Advantage
Financial
Position
Quarterly
Update
Appendix
6
F25 Financial Highlights
Professional Strength
Free Cash Flow
Capital Allocation
Return on Invested Capital
Continued strength in the professional segment, driven by underground construction and golf
Professional segment net sales of $3,624M, up 1.9% from $3,557M in F24
Professional segment earnings margin of 19.4% up from 18.0% in F24
Record *free cash flow of
$578M, up from $471M in F24
*Free cash flow conversion of 146%, up from 112%
Dividends per share increased 6% year-over-year
Share repurchases of $290M, up from $246M in F24
Total of $441M returned to shareholders in F25
ROIC* of 17.0%, up from 16.6% in F24
* Non-GAAP Measures: refer to the Appendix of this presentation for additional information and reconciliation
Overview
Portfolio
Demand
Drivers
Segment
Overview
Competitive
Advantage
Financial
Position
Quarterly
Update
Appendix
7
Focus Areas for Transformation
Design-to-Value
Operational Efficiency
Route-to-Market
Supply Base
Productivity Initiatives
$125M+
F26 Goal
Increased
$100M
Original Goal
Program-to-Date
F26 Goal
$86M
Annualized Savings Implemented
Overview
Portfolio
Demand
Drivers
Segment
Overview
Competitive
Advantage
Financial
Position
Quarterly
Update
Appendix
8
Factors that Could Affect Business Performance
Weather Conditions Seasonality Consumer Confidence Interest Rates
Macro Conditions Infrastructure Spend Housing Market
Diverse portfolio reduces reliance on weather conditions.
Long-Term
Performance Expectations
Annual Net Sales Growth (%) 3% to 5% Adjusted Operating Earnings Margin* (%) 13% to 15% Annual Adjusted Diluted EPS* Growth (%) 8% to 10% Free Cash Flow (FCF) Conversion* (%) Over 100%
* Non-GAAP Measures: refer to the Appendix of this presentation for additional information and reconciliation
Overview
Portfolio
Demand
Drivers
Segment
Overview
Competitive
Advantage
Financial
Position
Quarterly
Update
Appendix
9
Diversified & Complementary Portfolio
Diverse portfolio reduces reliance on weather conditions.
By Segment
By End Market
Residential
Professional
Professional work runs nearly twice the operating margin of residential - a clear reason our focus remains on the professional market.
Based on 10-year average F15 - F25
10%
18.5%
Operating Margins & Professional Growth
30%
30%
36%
70%
6%
24%
4%
F15
Net Sales
$2.39B
Agricultural Micro Irrigation
Construction
19%
4%
19%
29%
81%
22%
26%
F25
Net Sales
$4.51B
Overview
Portfolio
Demand
Drivers
Segment
Overview
Competitive
Advantage
Financial
Position
Quarterly
Update
Appendix
10