The Toro Company (TO2) AI Stock Analysis

The Toro Company

(Frankfurt:TO2)

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Positive Factors

Broad-Based Revenue GrowthGrowth across both Professional and Residential segments indicates broad customer demand rather than reliance on one end market. A diversified product portfolio spanning turf, irrigation, snow, construction, and residential equipment can support more resilient revenue expansion over the next several quarters.

Negative Factors

Rising LeverageHigher leverage and declining equity make the capital structure less conservative than in prior years. Although Toro remains profitable, increased financial obligations can reduce flexibility for acquisitions, investment, or shareholder returns and leave less room to absorb operating volatility.

The Toro Company (TO2) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 10.30B
Dividend Yield: 1.45%
Average Volume (3M): 55
Price to Earnings (P/E): 29.0
Beta (1Y): 0.49
Revenue Growth: -1.08%
EPS Growth: 6.15%
Country: Germany
Employees: 9,227
Sector: Industrials
Sector Strength: 63
Industry: Manufacturing - Tools & Accessories

The Toro Company Business Overview & Revenue Model

Company Description

The Toro Company specializes in the global development, manufacturing, distribution, and sale of a diverse array of equipment for both commercial and home use. Its Professional division supplies a comprehensive suite of turf and landscape maintenance...

The Toro Company Earnings Call Summary

Earnings Call Date:Sep 02, 2026(Q3-2026)|% Change Since:14.25%|Next Earnings Date:Nov 12, 2025

Earnings Call SentimentPositive

The call was strongly positive, with broad-based sales growth, improved residential and companywide margins, significant AMP savings, strong cash generation, raised full-year guidance and continued momentum in innovation, golf, and underground construction. The main challenges were a decline in professional segment margin, modestly lower golf shipments, higher costs and tax expense, uncertain IEEPA refund timing, installation constraints and weather- and tariff-related risks.

Positive Updates

Strong Third-Quarter Sales and Earnings

Third-quarter net sales increased 8.4% to $1.23 billion, including 6.2% organic growth. Adjusted EPS was $1.33, and adjusted operating earnings increased 11% year over year.

Negative Updates

Golf Shipments Declined Year Over Year

Golf shipments were down modestly year over year against a strong prior-year comparison. After two years of exceptional double-digit growth, the golf business is performing in line with expectations this year.

Company Guidance

The company raised full-year 2026 net sales guidance to the range of 6.3% to 6.6%, from the prior range of 4% to 6.5%, with professional net sales expected to be up mid-single digits and residential net sales approximately flat; adjusted EPS guidance is now between $4.60 to $4.65, from $4.50 to $4.62, with the midpoint increasing from $4.56 to $4.63. Implied fourth quarter guidance puts net sales between 3.9% and 5.1% and adjusted EPS between $0.93 and $0.98, including $7 million of anticipated IEEPA refunds versus the previously expected $12 million, with $5 million classified as outside of Phase 2 and refund timing uncertain. AMP is expected to achieve $125 million in run rate savings by year-end, with a productivity pipeline expected to continue in the future; the company is not ready to guide yet for F '27 but cited 8% to 10% kind of near-term growth expectations for EPS, continued margin expansion, residential returning to double-digit profitability, and tariffs not having a meaningful impact next year.

The Toro Company Risk Analysis

The Toro Company disclosed 35 risk factors in its most recent earnings report. The Toro Company reported the most risks in the "Production" category.

Production - Risks related to the company’s ability to manufacture goods and services

Latest Risks Added

0 New Risks

The Toro Company Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

DE:TO2 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SWK	77Outperform	$15.62B	26.15	6.90%	3.12%	0.57%	29.85%
LECO	73Outperform	$15.00B	27.14	37.78%	1.11%	11.02%	11.74%
SNA	70Outperform	$18.35B	18.69	16.84%	2.67%	2.93%	0.65%
KMT	66Neutral	$2.22B	6.84	24.79%	2.60%	19.82%	272.31%
HLMN	65Neutral	$1.52B	463.54	3.36%	―	6.47%	89.75%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

* Industrials Sector Average

Performance Comparison

DE:TO2 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:TO2	Toro Company	95.36	33.22	53.46%
KMT	Kennametal Inc	30.72	6.06	24.56%
LECO	Lincoln Electric	285.50	59.95	26.58%
SNA	Snap-on Inc	365.07	31.36	9.40%
SWK	Stanley Black & Decker	106.71	39.95	59.85%
HLMN	Hillman Solutions Corp.	8.39	-0.73	-8.00%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

The Toro Company AI Stock Analysis