TTC earnings analysis
What we found in TTC's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Toro delivered $1,225.8 million of revenue, a $34.9 million consensus beat, while reported EPS of $0.81 was substantially below the $1.31 estimate because of a $43.1 million impairment charge; adjusted EPS of $1.33 modestly exceeded consensus. Nine-month free cash flow was $425.1 million, but the supplied 10-Q extract does not provide quarterly gross margin, operating margin, segment revenue, balance-sheet totals, or quarterly free cash flow. Risk factors were unchanged from the 10-K, while the company remained exposed to $240.0 million of variable-rate debt, foreign exchange, and commodity-cost volatility.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue exceeded consensus
- Revenue was $1,225.8 million, exceeding the $1,190.9 million consensus estimate by $34.9 million, or approximately 2.9%.
- Adjusted EPS beat despite charge
- Reported EPS was $0.81, while adjusted EPS was $1.33; adjusted EPS exceeded the $1.31 consensus estimate by $0.02, whereas reported EPS was $0.50 below consensus.
- Strong nine-month cash flow
- Nine-month free cash flow was $425.1 million, supporting liquidity despite the reported $43.1 million impairment charge.
- Continued share repurchases
- The company repurchased 790,047 shares during the quarter at an average price of $92.27 per share; 6,476,489 shares remained available under the repurchase plans as of July 31, 2026.
- Debt mix is largely fixed-rate
- As of July 31, 2026, the company had $724.3 million of fixed-rate long-term debt, $200.0 million of variable-rate term-loan debt, and $40.0 million drawn on its revolving credit facility.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Impairment affected reported EPS
- The $43.1 million impairment charge reduced reported earnings and indicates exposure to facility or product-line underperformance. The supplied 10-Q does not quantify any further impairment exposure.
- Variable-rate debt exposure
- Variable-rate borrowings totaled $240.0 million as of July 31, 2026, comprising $200.0 million under term-loan agreements and $40.0 million under the revolving facility; higher rates could increase interest expense and affect cash flow.
- Input-cost and tariff pressure
- Commodity, component, tariff, and supplier-cost volatility could pressure margins. The filing identifies steel, engines, hydraulic components, transmissions, resin, aluminum, and electrification components as major spend categories, but provides no quantified sensitivity.
- Foreign-exchange volatility
- Foreign-exchange exposure remains material across multiple currencies. Outstanding hedges as of July 31, 2026 included a $197.4 million euro notional and a $59.0 million Mexican-peso notional, with fair-value gains of $1.3 million and $6.6 million, respectively.
- Capital allocation to buybacks
- The company repurchased 790,047 shares at an average price of $92.27 during the quarter, which uses capital that could otherwise support debt reduction or investment; 6,476,489 shares remained authorized for repurchase at July 31, 2026.
- No material risk-factor changes
- There were no material changes to the risk factors in the most recently filed 10-K, and the filing states that disclosure controls were effective as of July 31, 2026. Accordingly, no new material risk-factor update was identified.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.81
What they said about what is next.
The supplied 10-Q extract does not include quantitative revenue or EPS guidance. The prior 8-K reported fiscal 2026 net sales growth guidance of 6.3%-6.6% and adjusted EPS guidance of $4.60-$4.65, but those figures are not stated in the supplied 10-Q text.
The filing reads about the same as the one before it.
What came before.
- 10-Q · June 4, 2026
- The Toro Company reported Q2 2026 net sales of $1.42 billion, an increase of 8.1% year-over-year, with diluted EPS rising to $1.50 from $1.37. The company experienced growth in its Professional segment by 9.1% while the…
- 10-Q · March 5, 2026
- The Toro Company reported fiscal Q1 net sales of $1,036.3 million, up $41.3 million versus $995.0 million a year ago, with operating earnings rising to $87.1 million from $77.8 million and diluted EPS of $0.69 versus…
- 10-K · December 17, 2025
- The 10-K emphasizes Toro's strategic focus on innovation, product development (including alternative power, smart-connected, and autonomous solutions) and disciplined M&A to broaden the Professional portfolio. The…
- 10-Q · September 4, 2025
- Toro reported Q3 net sales of $1,131.3M and diluted EPS of $0.54. Revenue was modestly down versus the prior-year quarter, but profitability plunged after a $81.1M non‑cash impairment, driving operating earnings to…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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