Toro Company Reports Strong Q2 Results, Raises Full-Year Guidance Amid AI Growth
Toro Taps Into The AI Buildout Boom, Raises Outlook
Image: Benzinga
The Toro Company (NYSE:TTC) reported second-quarter sales of $1.43 billion, surpassing estimates, and raised its fiscal 2026 earnings outlook to $4.50-$4.62 per share. Strong demand in both Professional and Residential segments drove an 8.1% revenue increase year-over-year.
- 01Toro's adjusted earnings rose 13% year-over-year to $1.60 per share, exceeding estimates of $1.50.
- 02Free cash flow increased to $266 million, up $181 million from the previous year, with a conversion rate of 125%.
- 03Sales in the Professional segment grew 9.1%, while the Residential segment saw a 4.1% organic increase.
- 04The company returned $361 million to shareholders through dividends and share repurchases in the first half of fiscal 2026.
- 05Toro expects mid-single-digit sales growth for Q3, with Professional segment sales projected to increase by a mid-single-digit percentage.
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The Toro Company (NYSE:TTC) reported a strong second quarter, with sales reaching $1.43 billion, surpassing Wall Street's expectations of $1.39 billion. This represents an 8.1% increase from the previous year, driven by robust demand across key markets. Adjusted earnings rose 13% to $1.60 per share, beating the consensus estimate of $1.50. The company also reported an adjusted operating margin expansion of 70 basis points to 14.4%, supported by cost-saving measures and productivity improvements. Free cash flow surged to $266 million, reflecting effective inventory management and working capital improvements. Toro raised its full-year earnings forecast to $4.50 to $4.62 per share and increased its sales outlook to $4.69 billion to $4.80 billion. The Professional segment saw a 9.1% increase in sales, while the Residential segment grew 4.1% organically. Looking ahead, Toro anticipates continued growth in both segments, with a focus on high-single-digit earnings growth for fiscal 2026.
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Toro's strong performance indicates a healthy demand in the lawn care and outdoor equipment market, which may lead to job stability and growth in related sectors.
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