Shares of The Toro Company (NYSE:TTC) rose 3.2% in premarket trading on Wednesday after the outdoor power equipment maker delivered fourth-quarter results that topped expectations and issued an upbeat forecast for fiscal 2026.
Toro reported adjusted earnings of $0.91 per share for the fourth quarter, slightly ahead of analyst estimates of $0.90. Quarterly revenue totaled $1.07 billion, exceeding the consensus estimate of $1.05 billion, although it declined 1% from $1.08 billion a year earlier. For the full 2025 fiscal year, the company posted adjusted earnings per share of $4.20, beating market expectations, on revenue of $4.51 billion, representing a 2% year-on-year decrease.
The company’s Professional segment, which accounts for roughly 80% of its overall business, stood out with a full-year earnings margin of 19.4%, compared with 18.0% in the prior year. Investor sentiment improved further after Toro issued fiscal 2026 guidance calling for adjusted EPS in the range of $4.35 to $4.50, well above the analyst consensus forecast of $4.17.
“We delivered fourth quarter and full-year performance that exceeded our expectations, driven by strength in our Professional segment and strategic investments in productivity improvement measures,” said Richard M. Olson, chairman and chief executive officer.
Toro generated record free cash flow of $578 million during fiscal 2025, largely driven by improvements in working capital management. Over the course of the year, the company returned $441 million to shareholders through a combination of cash dividends and share repurchases.
Looking ahead, Toro expects net sales growth across the business of between 2% and 5% in fiscal 2026. Management pointed to sustained demand in underground construction, golf and grounds, and professional landscaping markets, while continuing to take a cautious view on homeowner demand.
The company also raised its targeted run-rate savings from its AMP initiative to $125 million by fiscal 2027, up from its previous goal of at least $100 million, reflecting faster-than-expected progress in productivity enhancements.