TORO CO recently released its Form 10-Q for the quarter ended July 31, 2026. The company designs, manufactures, and sells professional turf maintenance equipment and services, irrigation systems, landscaping and snow-management products, and residential yard equipment. Its operations are organized into Professional and Residential segments, with products sold through distributors, dealers, retailers, rental centers, home centers, and online channels.
In Item 2, management said consolidated net sales in the third quarter rose 8.4% to $1.2258 billion from $1.1313 billion a year earlier. For the first nine months, sales increased 7.0% to $3.6868 billion from $3.4442 billion. The quarterly increase was driven by higher Professional and Residential volume, net price realization, and the Tornado acquisition; year-to-date growth was led by net price realization, the Tornado acquisition, and higher Professional segment volume.
Professional segment net sales increased 8.8% in the quarter to $1.0126 billion from $930.8 million, and rose 8.5% year to date to $2.9432 billion from $2.7137 billion. Residential segment net sales climbed 8.6% in the quarter to $209.3 million from $192.8 million, while nine-month sales increased 2.0% to $725.7 million from $711.2 million.
Net earnings for the quarter were $77.0 million, or $0.81 per diluted share, versus $53.5 million, or $0.54 per diluted share, a year earlier. For the first nine months, net earnings were $290.3 million, or $2.99 per diluted share, compared with $243.1 million, or $2.42 per diluted share. Adjusted net earnings were $126.8 million, or $1.33 per diluted share, in the quarter, up from $122.5 million, or $1.24 per diluted share, and $354.8 million, or $3.66 per diluted share, year to date, up from $330.2 million, or $3.29 per diluted share.
Toro said it returned $470.9 million to stockholders in the first nine months through dividends and share repurchases. The quarterly dividend was raised 2.6% to $0.39 per share from $0.38 per share. Field inventory was higher than a year ago, mainly because underground construction product inventories were replenished to healthy levels, and order backlog was described as similar to the prior year-end because it has largely normalized.
Management also disclosed that as of July 31, 2026, it had recorded about $8 million as a reduction to cost of goods sold tied to IEEPA tariff refunds and estimated total recoverable tariffs of about $20 million. The AMP productivity initiative had delivered cumulative cost savings of $123.4 million and annualized savings of $124.9 million, with a target of at least $125 million of run-rate savings by fiscal 2027. During the third quarter, Toro recorded $43.1 million of non-cash impairment charges related to the planned closure of its Monterrey manufacturing facility and the write-down of assets tied to a residential mower platform. Today the company's shares have moved -6.63% to a price of $92.58. If you want to know more, read the company's complete 10-Q report here.
