The Toro Company has recently released its 10-Q report, providing a detailed insight into its financial condition and operational performance. The company specializes in designing, manufacturing, and selling professional turf maintenance equipment and services, operating through two segments: Professional and Residential. Its product offerings include a wide range of equipment such as mowers, irrigation systems, snow and ice management products, and agricultural irrigation systems. The company was founded in 1914 and is headquartered in Bloomington, Minnesota.
In the Management’s Discussion and Analysis of Financial Condition and Results of Operations, The Toro Company reported consolidated net sales for the third quarter of fiscal 2025 at $1,131.3 million, down 2.2% compared to the same period in the prior fiscal year. For the first nine months of fiscal 2025, consolidated net sales were $3,444.2 million, down 1.8% compared to the same period in the prior fiscal year. The Professional segment net sales for the third quarter of fiscal 2025 were $930.8 million, an increase of 5.7% compared to the prior fiscal year, while the Residential segment net sales for the same period were $192.8 million, a decrease of 27.9% compared to the prior fiscal year. The company's net earnings for the third quarter of fiscal 2025 were $53.5 million, or $0.54 per diluted share, compared to $119.3 million, or $1.14 per diluted share, for the third quarter of fiscal 2024. Net earnings for the first nine months of fiscal 2025 were $243.1 million, or $2.42 per diluted share, compared to $329.0 million, or $3.14 per diluted share, in the comparable fiscal 2024 period.
The company reported a non-cash impairment charge of $81.1 million related to the Spartan trade name intangible asset in the third quarter of fiscal 2025. It also mentioned that new U.S tax legislation signed into law in July 2025 is not expected to have a material impact on its results of operations. The company also launched a significant productivity initiative named AMP in the first quarter of fiscal 2024, intended to result in annualized cost savings of more than $100 million by fiscal 2027, with anticipated annualized cost savings of $74.5 million as of the third quarter of fiscal 2025.
In terms of financial measures, The Toro Company reported that its gross profit for the third quarter of fiscal 2025 was $381.8 million, down 5.2% compared to the same period in the prior fiscal year, with a gross margin of 33.7%. Selling, general, and administrative expense decreased by 7.4% for the third quarter of fiscal 2025, and the company recorded a non-cash impairment charge of $81.1 million within its Professional segment related to the Spartan trade name in the third quarter and year-to-date period of fiscal 2025. Interest expense increased by $0.6 million for the third quarter of fiscal 2025, primarily due to higher average outstanding borrowings, while other income, net decreased by $2.5 million for the same period, primarily due to prior year net gains on divestitures and current year net losses on divestitures.
The Toro Company's 10-Q report provides a comprehensive overview of its financial performance, strategic initiatives, and market conditions, offering valuable insights to investors and stakeholders. Following these announcements, the company's shares moved -2.17%, and are now trading at a price of $78.78. Check out the company's full 10-Q submission here.
