Toro Co Q2 Revenue Rises 8% as Tornado Integration Boosts Sales
TTC•Toro Co reported fiscal Q2 revenue of $1.42 billion, up 8%, with adjusted EPS of $1.60 marking the second consecutive quarter of double-digit earnings growth. Integration of Tornado added over two percentage points to top-line sales, while the adjusted tax rate climbed 300 basis points to 21.7% and DitchWitch achieved low double-digit growth.
1. Q2 Financial Results
Toro Co posted fiscal second-quarter revenue of $1.42 billion, an 8% year-over-year increase, and delivered adjusted earnings of $1.60 per share, marking its second straight quarter of double-digit adjusted EPS growth.
2. Segment Performance
The integration of Tornado contributed over two percentage points to top-line organic sales growth, while the DitchWitch business saw low double-digit unit and parts-and-service growth driven by new drills like the GT21 and JT-120.
3. Tariffs and Tax Impact
Gross tariff assumptions rose to $120 million for the fiscal year, offset by a projected $20 million refund in late 2026, and the adjusted tax rate increased by 300 basis points to 21.7% due to a shift in geographic earnings mix.
4. Outlook and Headwinds
Inflationary pressures and updated tariff assumptions are expected to weigh on third-quarter results, with mitigation actions delayed until Q4, while residential margins should improve year-over-year but decline sequentially due to seasonality.
