Toro Continues its Strong Run: Q2 2026 Earnings Exceed Expectations
The Toro Company has once again demonstrated its ability to exceed expectations, delivering an impressive 8% top-line growth in the second quarter of fiscal year 2026. This marks the company's second consecutive quarter of double-digit adjusted earnings growth, driven by strong demand and improving margins.
According to Rick Olson, Chairman and Chief Executive Officer, "The Toro Company continued its strong start to the year, exceeding expectations with second-quarter top-line growth of 8% and adjusted EPS of $1.60." This success is a direct result of the company's focus on key strategic priorities: accelerating profitable growth, driving productivity and operational excellence, and empowering people.
The company's performance was broad-based across its portfolio, with residential net sales growing 4% and professional net sales increasing by 9%. Within the professional segment, Toro achieved mid-single-digit sales growth in golf and grounds, high single-digit sales growth in landscape contractor, and low double-digit organic sales growth in underground and specialty construction.
One notable highlight was the performance of the JT120 horizontal directional drill in underground construction. This product has seen a strong response from customers, with a robust and growing order pipeline. The drill's advanced capabilities increase operator efficiency and job site safety, making it an ideal solution for long bores and difficult terrain.
Toro also highlighted another example of customer-driven innovation at CONEXPO in March: Orange Intel, a customizable fleet management and job site intelligence system. This system provides Ditch Witch customers with the ability to optimize productivity, manage maintenance and uptime, enhance security, and integrate all this information across the full job lifecycle.
The integration of Tornado is also progressing well, contributing over 2 percentage points to top-line sales. Toro expects a long runway of growth for this business as the need for soft excavation is significant and growing. An increasing number of states and countries have requirements around safely uncovering underground utilities.
In the landscape contractor segment, Toro saw strength across its Toro, Exmark, and Ventrac brands after a more normal snow season helped drive sales in Q2. Spring conditions were more typical this year, providing a favorable year-over-year comparison to last year's late spring, where some second-quarter sales fell into the third quarter due to delayed timing.
Despite macroeconomic and geopolitical headwinds and increased inflationary pressures, Toro achieved its strong performance across its portfolio. The company continues to strengthen its capabilities with a specific focus on productivity and operational excellence.
