Toro Q4 revenue, adjusted EPS beat estimates

Overview

• Lawn equipment maker's Q4 revenue beat analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• The Toro Company says FY adjusted EPS surpassed its expectations, driven by Professional segment strength

Outlook

• Toro expects fiscal 2026 net sales growth of 2% to 5%

• Toro forecasts fiscal 2026 adjusted EPS of $4.35 to $4.50

• Tornado acquisition to add 2% to Toro's fiscal 2026 sales

Result Drivers

• PROFESSIONAL SEGMENT - Strength in Professional segment with improved earnings margin driven by net price realization and productivity improvements

• TARIFF MITIGATION - Co maintained margins for full-year fiscal 2025 by mitigating tariff impacts

• COST SAVINGS - Productivity improvements and cost savings measures helped offset higher material costs in Residential segment

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the heavy machinery & vehicles peer group is "buy"

• Wall Street's median 12-month price target for Toro Co is $90.00, about 23.9% above its December 16 closing price of $72.65

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release: ID:nBw4htwM6a

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)