Q3 2026 The Toro Company Earnings Call Transcript
Key Points
- The Toro Co (TTC) delivered a strong third quarter with net sales growing 8% and adjusted EPS of $1.33, exceeding expectations.
- Both professional and residential segments saw over 8% net sales growth, with residential margins improving by 400 basis points year-over-year.
- The AMP initiative is on track to exceed its $125 million run rate savings target by year-end, driving durable margin expansion.
- Strong free cash flow of $425 million (128% conversion) enabled $358 million in share repurchases, boosting EPS.
- Innovative products like the redesigned Exmark Radius, GrandStand MULTI FORCE, and HammerHead Bluelight are driving strong demand and market adoption.
- The company raised its full-year adjusted EPS guidance to $4.60-$4.65, reflecting confidence in continued momentum.
- Professional segment adjusted operating margin declined 40 basis points year-over-year due to product mix and higher manufacturing costs.
- Golf shipments were down modestly year-over-year against a strong prior year comparison.
- The adjusted tax rate was higher than expected at 22.4%, negatively impacting EPS by $0.08.
- The company recorded a noncash impairment charge of $43 million related to AMP network optimization and product portfolio rationalization.
- Anticipated IEEPA tariff refunds were reduced by $5 million due to classification issues, creating uncertainty in timing.
- Residential segment net sales are expected to be approximately flat for the full year as the company laps strong prior-year snow-related demand.
Good day, ladies and gentlemen, and welcome to The Toro Company's third-quarter earnings conference call. My name is Marvin and I'll be your coordinator for today. (Operator Instructions) As a reminder, this conference is being recorded for replay purposes.
I'll now 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 third-quarter 2026 earnings conference call. I'm Heather Hille, Vice President of Corporate Affairs and Investor Relations. On the line with me today are Rick Olson, Chairman and Chief Executive Officer; Edric 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 third quarter results, which were released earlier this morning, and discuss our
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
