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…
Earnings analysis · 10-Q
TTC earnings analysis
Filed September 3, 2026 · Our reading of the company's report
The latest report
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…
Read full summary
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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.81
What stood out
-
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.
What to watch
-
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.
Management's outlook
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.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.