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Aug 01
Toro Q3 2025 Earnings Report
Toro reported mixed results with strong professional segment performance offset by residential weakness.
Key Takeaways
Toro posted solid adjusted EPS and Professional segment growth in Q3 FY25, but reported earnings were impacted by a non-cash impairment tied to weak residential demand.
Net sales were $1.1313 billion, down 2% year-over-year due to divestitures.
Adjusted EPS rose to $1.24, exceeding expectations despite Residential segment softness.
Professional segment revenue grew 5.7% to $930.8 million, driven by underground construction and golf & grounds.
Residential segment sales fell nearly 28% due to lower homeowner demand.
Toro
Toro
Toro Revenue by Segment
Toro Revenue by Geographic Location
Revenue by Segment
Professional Revenue
CapyFin.comResidential Revenue
CapyFin.comOther Revenue
CapyFin.comRevenue by Geographic Location
International Revenue
CapyFin.com Forward Guidance
Toro expects FY25 results to be at the lower end of prior guidance ranges due to residential weakness, but continues to drive earnings growth through cost savings and strength in professional products.
Positive Outlook
- AMP productivity program delivering $75M in annualized savings.
- Professional segment growth and margin expansion.
- Strong demand in underground construction and golf & grounds.
- Improving free cash flow performance.
- Stable supply conditions in core segments.
Challenges Ahead
- Residential demand remains weak.
- Impairment tied to Spartan brand due to slow recovery.
- Inventory and manufacturing cost pressures.
- Tariff impacts factored into guidance.
- Lower homeowner and channel confidence.
Revenue & Expenses
Visualization of income flow from segment revenue to net income