Toro Q1 EPS Up 14% to $0.74 on $1.04B Sales
Toro reported Q1 adjusted EPS of $0.74, up from $0.65, on consolidated net sales of $1.04 billion, a 4.2% increase driven by snow and ice product shipments in professional and residential segments. Professional earnings reached $137.6 million as operating margin expanded to 9.8%, supported by a $100 million Tornado acquisition contribution.
1. Q1 Financial Results
Toro posted adjusted earnings per share of $0.74 for the first quarter, up from $0.65 a year earlier, on consolidated net sales of $1.04 billion, representing a 4.2% increase. Adjusted operating margin rose to 9.8% from 9.4% as productivity initiatives and net price realization offset higher material and manufacturing costs.
2. Segment Performance and Acquisition Impact
Professional segment net sales reached $824 million with earnings of $137.6 million, while residential sales totaled $206 million with earnings of $13.2 million, driven by elevated snow and ice equipment demand. The Tornado Infrastructure Equipment acquisition is expected to contribute about $100 million in sales, roughly 2% of growth, and complements underground construction offerings.
3. Cash Flow and Capital Allocation
Free cash flow rose to $14.6 million, increasing by more than $80 million year-over-year and yielding a 22% conversion rate supported by inventory improvements and seasonal snow demand. During the quarter, Toro repurchased $95 million of common stock and returned $133 million to shareholders through dividends and buybacks, maintaining a healthy 1.5x leverage ratio.