Q2 2026 Toro Co Earnings Call Transcript
Key Points
- The Toro Co (TTC) reported an 8% top-line growth and adjusted EPS of $1.60, marking the second consecutive quarter of double-digit adjusted earnings growth.
- Professional net sales grew by 9%, with notable growth in golf and grounds, landscape contractor, and underground and specialty construction segments.
- The JT-120 horizontal directional drill and Orange Intel fleet management system received strong customer responses, contributing to a robust order pipeline.
- The integration of Tornado is progressing well, contributing over 2 percentage points to top-line sales, with a significant growth runway anticipated.
- The AMP program, launched in fiscal 2024, continues to exceed expectations, driving productivity and operational excellence across the company.
- Macroeconomic and geopolitical headwinds, along with increased inflationary pressures, pose challenges to The Toro Co (TTC)'s operations.
- Inventory levels for landscape contractor and residential segments are below desired levels, particularly for zero-turn mowers.
- The adjusted tax rate increased by 300 basis points to 21.7% due to the geographic mix of earnings, impacting overall profitability.
- Material, manufacturing, and freight costs partially offset the gains from net price realization and productivity improvements in the residential segment.
- Tariff changes and inflationary pressures are expected to impact the third quarter more acutely, with mitigation actions not fully in place until Q4.
Good day, ladies and gentlemen, and welcome to The Toro Company's second quarter earnings conference call. My name is Josh, and I will be your coordinator for today. (Operator Instructions) As a reminder, this conference is being recorded for replay purposes.
I would now like to turn the presentation over to your host for today's conference, Heather Hille, Vice President, Corporate Affairs and Investor Relations. Please proceed, Ms. Hille.
Good morning, everyone, and thank you for joining us for the Toro Company's second quarter 2026 earnings conference call. I'm Heather Hilley, Vice President of Corporate Affairs and Investor Relations. On the line with me today are Rick Olson, Chairman and Chief Executive Officer Edrick Funk, President and Chief Operating Officer and Angie Drake, Vice President and Chief Financial Officer.
Rick, Edric and Angie will provide an overview of our second quarter results, which were released earlier this morning and discuss our
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