The Toro Company exceeded full-year expectations in fiscal 2025 driven by strength in Underground Construction and Golf segments.
They reported a record free cash flow of $578 million, primarily from net working capital improvements.
The company returned $441 million to shareholders through cash dividends and stock repurchases.
Full-Year Earnings Margin Increase
Professional segment full-year earnings margin reached 19.4%, up from 18.0% in fiscal 2024.
Record Free Cash Flow
Achieved a record free cash flow of $578 million, mainly attributed to improvements in net working capital.
AMP Initiative Success
The company raised the AMP run-rate savings target to $125 million by 2027, from an initial target of at least $100 million.
Fiscal 2026 Guidance
*Adjusted diluted earnings per share guidance for fiscal 2026 ranges from $4.35 to $4.50, reflecting mid-single digit earnings growth.
- The positive results were driven by the Professional segment earning margin of 19.4%.
- The company's successful AMP initiative contributed to increased run-rate savings.
- Strong cash flow and financial discipline bolstered the balance sheet position and return on invested capital.
The Toro Company's strategic investments and operational excellence have positioned it for continued growth and value creation. With a strong financial performance in fiscal 2025 and promising guidance for 2026, investors can look forward to sustained progress from the company.