The Toro Company recently released its 10-Q report, providing an insight into its financial performance and operations. The company, established in 1914 and headquartered in Bloomington, Minnesota, specializes in designing, manufacturing, marketing, and selling professional turf maintenance equipment and services, including turf irrigation systems, landscaping equipment, snow and ice management products, and agricultural irrigation systems. It operates through two segments: Professional and Residential, and sells its products worldwide through various channels.
In its Management’s Discussion and Analysis of Financial Condition and Results of Operations, The Toro Company reported consolidated net sales of $1,317.9 million for the second quarter of fiscal 2025, down 2.3% compared to the same period in the prior fiscal year. The Professional segment net sales increased by 0.8%, reaching $1,014.1 million, while Residential segment net sales decreased by 11.4% to $297.4 million. The company's net earnings for the second quarter of fiscal 2025 were $136.8 million, or $1.37 per diluted share, compared to $144.8 million, or $1.38 per diluted share, for the second quarter of fiscal 2024.
The Toro Company's gross profit for the second quarter of fiscal 2025 was $436.7 million, with a gross margin of 33.1%, representing a decrease of 50 basis points compared to the same period in the prior fiscal year. Selling, general, and administrative ("SG&A") expense decreased by 1.3% for the second quarter of fiscal 2025. The effective tax rate for the second quarter of fiscal 2025 was 18.9%, compared to 19.2% in the second quarter of fiscal 2024. The company's adjusted net earnings for the second quarter of fiscal 2025 were $141.8 million, or $1.42 per diluted share, an increase of 1.4% per diluted share compared to the second quarter of fiscal 2024.
The company also reported that it returned $276.3 million of cash to its shareholders during the first six months of fiscal 2025 through quarterly cash dividends and common stock repurchases. Additionally, The Toro Company highlighted the impact of the tariff environment on its business, as well as the progress of its significant productivity initiative named AMP, which aims to result in annualized cost savings of more than $100 million by fiscal 2027. Today the company's shares have moved -2.11% to a price of $73.985. If you want to know more, read the company's complete 10-Q report here.
