The Toro Company recently reported its fiscal first-quarter results for 2026, showing a 4% year-over-year increase in net sales, reaching $1.04 billion. Adjusted earnings per share (EPS) also saw a 14% increase compared to the same period last year, reaching $0.74.
In terms of segment results, the professional segment experienced a 7.2% increase in net sales, totaling $824.0 million, while the residential segment saw a 6.8% decrease, reaching $206.0 million.
The company returned $133 million to shareholders and raised its full-year net sales and EPS guidance. It now expects total company net sales growth in the range of 3% to 6.5%, up from a range of 2% to 5%, and adjusted EPS in the range of $4.40 to $4.60, up from a range of $4.35 to $4.50.
The gross margin and adjusted gross margin for the first quarter were 32.5% and 33.4%, respectively, down from 33.7% and 34.1%, respectively, in the same prior-year period. SG&A expense as a percentage of net sales for the first quarter was 24.1%, compared with 25.9% in the prior-year period.
Furthermore, the reported effective tax rate for the first quarter was 21.9%, compared with 20.1% in the same prior-year period. The adjusted effective tax rate for the first quarter was 21.5% compared with 20.2% in the same prior-year period.
The company is investing in technology and innovation to enhance customer productivity and capitalize on market opportunities. The acquisition of Tornado Infrastructure Equipment is expected to add approximately 2% to total company net sales and be modestly accretive to adjusted EPS.
As a result of these announcements, the company's shares have moved 0.0% on the market, and are now trading at a price of $89.57. For more information, read the company's full 8-K submission here.
