The Toro Company Starts Fiscal Year 2025 with Strong Momentum

The Toro Company, a leading provider of innovative products and solutions for the turf, landscape, rental and residential segments, has reported a solid start to fiscal year 2025. Despite below-average snowfall in key markets, the company delivered first quarter bottom-line results that exceeded expectations.

According to Rick Olson, Chairman and Chief Executive Officer, the company's market-leading lineup of innovative products, combined with disciplined execution by its talented team and exceptional customer service provided by its best-in-class network of channel partners, drove the strong performance. Total company net sales for the quarter reached nearly $1 billion, with growth in the professional segment offsetting lower shipments in residential.

Within the professional segment, Toro achieved significant growth through increased output for golf and grounds products. The demand for these products remains robust, coming off a record year of rounds played, and order backlog remains elevated. Additionally, the company delivered on strong channel demand for its new contractor-grade zero-turn mowers ahead of the upcoming spring season, including its 30th-anniversary Exmark Lazer Z lineup featuring exclusive Adapt technology.

In the residential segment, Toro continued to face challenges from elevated field inventories of snow products. However, the company managed to increase adjusted diluted earnings per share to $0.65 on the momentum of its Amplifying Maximum Productivity (AMP) initiative and improved profitability in the Professional segment.

The improved profitability was driven by favorable mix, positive net price, prudent expense management, and productivity gains within the Professional segment. Based on these results and current visibility, Toro is maintaining its full-year fiscal 2025 net sales and adjusted diluted earnings per share guidance.

Due to the uncertain and rapidly changing tariff environment, this guidance excludes all incremental tariffs introduced year-to-date, with the exception of the additional tariffs on China imports that came into effect in February. Angie Drake, Vice President and Chief Financial Officer, will discuss the details of Toro's guidance shortly.

Toro continues to strategically position itself for sustained profitable growth by prioritizing innovation that directly addresses its customers' most pressing needs and aligns with key market growth trends. Across all its businesses, the company is launching cutting-edge products equipped with the latest technologies, reinforcing its commitment to industry leadership and long-term success.

Examples of this innovation leadership include the recent showcase of Toro's suite of robotic solutions at the Golf Course Superintendents trade show. This included the introduction of its new Toro Turf Pro autonomous mower featuring GPS RTK technology ideal for multiple golf course applications, sports fields, and grounds. The Turf Pro helps customers improve productivity while keeping grounds consistently well-manicured by mowing up to 18.5 acres three times a week with minimal operator input.

The company's commitment to innovation was also evident in the display of its new Exmark Turf Tracer with XiQ at the same trade show, demonstrating Toro's ongoing efforts to provide customers with the latest technologies and solutions that meet their evolving needs.