Toro Powers Through Challenges with Strong Q3 Performance
The Toro Company has demonstrated its ability to thrive in a challenging market, delivering an impressive 8% growth in net sales and adjusted earnings per share of $1.33 for the third quarter of 2026. According to Rick Olson, Chairman and Chief Executive Officer, the company's strong performance was driven by both its professional and residential segments, with notable success in the redesigned Exmark Radius zero-turn mower and the GrandStand MULTI FORCE product line.
In the professional segment, landscape contractor sales increased double digits, with underground and specialty construction growing mid-single digits. The Exmark Radius, launched earlier this year, has been a major contributor to this growth, offering customers improved performance and efficiency. Meanwhile, the GrandStand MULTI FORCE has seen significant adoption due to its versatility and ability to expand services and increase profitability for contractors.
Toro's Ventrac business also continues to grow, with professional landscape contractors and homeowners with acreage benefiting from its range of attachments, including the newly introduced Fence Post Mower. This innovative solution eliminates labor-intensive trimming processes and has exceeded customer expectations in terms of demand.
The company's BOSS snow and ice management products have seen a successful Q3 load-in, with liquid de-icing technologies and the Snowrator delivering strong year-over-year growth rates. Underground construction continues its strong performance, driven by increased market adoption for HammerHead Bluelight's industrial and utility pipe relining solutions.
In the residential segment, Toro grew net sales by over 8%, supported by the continued success of its partnership with Lowe's. Importantly, this growth was accompanied by a margin improvement of 400 basis points year over year, with the company remaining on track to achieve its goal of sustainable double-digit operating margins in residential.
The company's strong cash flow has enabled it to execute $358 million of share repurchases and drive working capital improvements, contributing to $425 million in free cash flow at a conversion rate of 128%. As Rick Olson noted, 'Our AMP program and working capital initiatives are driving margin expansion for the company, and our ability to generate strong cash flow is enabling us to invest in growth opportunities.'
Overall, Toro's Q3 performance demonstrates its resilience and adaptability in a challenging market, with the company poised to continue delivering strong results in the remainder of fiscal 2026.
