TORO CO recently released its latest 10-Q report. The company designs, manufactures, markets, and sells equipment and services for professional turf maintenance, irrigation, landscaping, snow and ice management, agricultural irrigation, underground construction, and residential yard care. It operates through two reportable segments, Professional and Residential, and sells through distributors, dealers, retailers, rental centers, home centers, and online channels.
In the second quarter of fiscal 2026, consolidated net sales rose 8.1% to $1.4247 billion from $1.3179 billion a year earlier. For the first six months, net sales increased 6.4% to $2.4610 billion from $2.3129 billion. Management said the quarter’s sales increase was driven mainly by net price realization, the Tornado acquisition, and higher shipments in both segments.
Professional segment net sales climbed 9.1% in the quarter to $1.1066 billion and rose 8.3% year to date to $1.9306 billion. Residential segment net sales increased 4.4% in the quarter to $310.4 million, while first-half sales slipped 0.4% to $516.4 million.
Gross profit in the quarter increased 10.5% to $482.7 million, and gross margin improved to 33.9% from 33.1%. For the first six months, gross profit rose 6.1% to $819.2 million, while gross margin edged down to 33.3% from 33.4%.
SG&A expense rose 9.9% in the quarter to $287.8 million and increased 3.3% year to date to $536.0 million. As a share of sales, SG&A was 20.2% in the quarter versus 19.8% a year earlier, but improved to 21.8% year to date from 22.5%.
Net earnings for the quarter were $145.4 million, or $1.50 per diluted share, compared with $136.8 million, or $1.37 per diluted share, last year. For the first six months, net earnings were $213.3 million, or $2.18 per diluted share, up from $189.6 million, or $1.88 per diluted share. Adjusted net earnings were $155.4 million, or $1.60 per diluted share, in the quarter and $228.0 million, or $2.33 per diluted share, year to date.
Toro returned $360.9 million to stockholders in the first six months through dividends and share repurchases. It raised its quarterly dividend 2.6% to $0.39 per share from $0.38 a year earlier. Field inventory levels were lower than a year ago, and order backlog was described as similar to the end of the fourth quarter of fiscal 2025.
Management also said the AMP productivity initiative has delivered cumulative cost savings of $106.8 million and is now expected to reach at least $125 million in run-rate savings by fiscal 2027. The company said it estimates it may be eligible to recover about $20 million of IEEPA tariffs paid, while noting that it has not recognized any benefit from potential refunds as of May 1, 2026. Today the company's shares have moved 1.56% to a price of $92.365. Check out the company's full 10-Q submission here.
