Toro Company ( (TTC) ) has released its Q1 earnings. Here is a breakdown of the information Toro Company presented to its investors.
The Toro Company is a global leader in providing innovative solutions for outdoor environments, specializing in turf and landscape maintenance, snow and ice management, and irrigation systems. The company operates in over 125 countries and is known for its extensive portfolio of brands, including Toro, Exmark, and BOSS.
In the first quarter of fiscal 2025, The Toro Company reported net sales of $1.0 billion, a slight decrease from the previous year. Despite this, the company exceeded its bottom-line expectations with an adjusted diluted EPS of $0.65, up from $0.64 in the same period last year. The company also returned $100 million to shareholders through share repurchases, demonstrating confidence in its financial health.
Key highlights from the earnings report include a 1.6% increase in net sales for the professional segment, driven by strong demand for golf and grounds products and zero turn mowers. However, the residential segment experienced an 8.0% decline in net sales due to lower shipments of snow products and the divestiture of Pope Products. The company’s gross margin slightly decreased to 33.7%, primarily due to higher material and manufacturing costs.
Looking forward, The Toro Company maintains its guidance for fiscal 2025, expecting net sales growth between 0% to 1% and adjusted diluted EPS between $4.25 to $4.40. The company remains optimistic about its market leadership and plans to continue driving productivity through its AMP initiative, aiming for $100 million in cost savings by fiscal 2027.
Overall, The Toro Company is poised to navigate the challenges of the current economic environment, with strong demand in key markets and a focus on innovation and operational efficiency.