10-Q - The Toro Company | StockGist

AI Analysis

AI-generated analysis. Always verify with the original filing.

The Toro Company reported Q1 2026 net sales of $1.04 billion, a 4.2% increase from $995.0 million in Q1 2025. Net earnings were $67.9 million, up 28.6% from $52.8 million in the prior-year quarter. Gross profit was $336.5 million with a gross margin of 32.5%, slightly down from 33.7% in Q1 2025. Operating earnings improved to $87.1 million from $77.8 million, driven by lower selling, general and administrative expenses. The company completed the acquisition of Tornado Infrastructure Equipment Ltd. for $210.3 million, funded through borrowings under its revolving credit facility. Cash flow from operations was $26.1 million, a significant improvement from negative $48.6 million in Q1 2025. The company repurchased $94.9 million of common stock and paid $38.3 million in dividends during the quarter.

Key Takeaways

1Net sales increased 4.2% to $1.04 billion in Q1 2026 versus Q1 2025

2Net earnings grew 28.6% to $67.9 million from $52.8 million year-over-year

3Completed $210.3 million acquisition of Tornado Infrastructure Equipment Ltd.

4Operating cash flow improved to $26.1 million from negative $48.6 million

5Repurchased $94.9 million of common stock and paid $38.3 million in dividends

Key Financial Metrics

EPS

$0.69

$0.52 prior year

Revenue

$1.04B

Net Income

$67.9M

Gross Margin

32.5%

33.7% prior year

Gross Profit

$336.5M

Operating Income

$87.1M

operating margin

8.4%