•
May 02
Toro Q2 2025 Earnings Report
Toro reported stable Q2 results, with strong Professional segment performance mitigating Residential softness.
Key Takeaways
Toro exceeded EPS expectations in Q2 FY25, supported by improved product mix and profitability in its Professional segment despite lower Residential sales.
Professional segment revenue rose to $1.0141 billion, driven by golf and grounds equipment.
Residential segment revenue declined due to lower mower and power product shipments.
Adjusted EPS came in at $1.42, above reported EPS of $1.37.
Gross and operating margins were slightly compressed due to higher input costs.
Toro
Toro
Toro Revenue by Segment
Toro Revenue by Geographic Location
Forward Guidance
For FY25, Toro expects flat to -3% revenue growth and adjusted EPS between $4.15 and $4.30.
Positive Outlook
- Stable demand in golf and grounds equipment.
- Productivity initiatives improving margins.
- Strong Professional segment profitability.
- Favorable geographic earnings mix aiding tax rate.
- Continued supply stability in core Professional markets.
Challenges Ahead
- Residential demand softness continues.
- Higher material and manufacturing costs.
- Cautious channel behavior impacting volume.
- Weather dependency risks for second half.
- Macroeconomic uncertainty including tariffs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income