Toro's Growth Continues
Toro Reports Strong Q2 Revenue and Beats Estimates, Raises Full-Year EPS Guidance
Anonymous
The Toro Company reported fiscal second-quarter results for the period ended May 1, 2026, with net sales of $1.4247 billion, up 8.1% year over year, and diluted EPS of $1.50, alongside adjusted diluted EPS of $1.60. The company attributed the profit growth to broad-based demand and continued margin expansion from operational execution, while also emphasizing disciplined working capital management that supported robust free cash flow and shareholder returns. Segment results showed stronger Professional sales (up 9.1%) and improving Residential performance (up 4.4% and margin improvement), with initiatives offsetting higher material, manufacturing, and freight costs amid a dynamic inflationary environment. Toro also pointed to ongoing integration activity related to its Tornado acquisition as contributing to results and said it raised full-year adjusted EPS guidance to $4.50–$4.62 and expects net sales growth of 4.0% to 6.5%. A related filing on Form 8-K furnished the earnings release, and separate market coverage noted the quarter also beat consensus estimates for both EPS and revenue. Toro reported returning $228 million to shareholders during the quarter via dividends and share repurchases.
Key Points
1
CEO Richard M. Olson said the quarter’s adjusted EPS growth was driven by “strong demand across our portfolio and continued margin expansion from operational execution,” adding that Toro’s portfolio strength is rooted in “the quality and performance of our products in attractive end markets,” and that “disciplined working capital management” supported “another quarter of robust free cash flow.”
2
Toro provided additional balance-sheet and cash-flow detail: six-month free cash flow was $265.5 million with a 124.5% free-cash-flow conversion, inventories totaled $923.4 million at period end, and international sales were $278.8 million of total net sales for the quarter.
3
Segment profitability was quantified: the Professional segment margin expanded to 20.3% of net sales, and the Residential segment margin improved to 9.8% of net sales (both alongside the sales growth discussed in the earnings materials).
4
Market-coverage figures (beyond headline results) reported Toro beat consensus and delivered profitability ratios: FiscalAI cited EPS of $1.60 versus a $1.50 consensus and revenue of $1.42 billion versus $1.39 billion expectations, with a net margin of 7.28% and return on equity of 29.60%. The same coverage also noted a quarterly dividend of $0.39 per share (paid July 10; record June 16).
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