EarningsQ3 2026 Earnings Report
MX:TTC Q3 2026 EPS Results
Actual EPS$23.05
Consensus EPS$22.65
Beat/MissBeat by +$0.40
One Year Ago EPS$21.49
MX:TTC Q3 2026 Revenue Results
Actual Revenue$21.26B
Expected Revenue$20.64B
Beat/MissBeat by +$618.37M
YoY Revenue Growth+8.33%
Earnings Announcement Details
QuarterQ3 2026
Date09/03/2026
TimeBefore Open
Conference CallThursday, September 3, 2026
MX:TTC Upcoming Earnings
The Toro Company's next earnings date is estimated for December 23, 2026, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:TTC Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
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.Company Guidance
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.
Broad-Based Segment Growth
Professional net sales increased 8.8%, including 6.1% organic growth, while residential net sales increased 8.6%. Both segments grew net sales by more than 8% during the quarter.
Professional Contractor Demand and Product Momentum
Landscape contractor sales increased double digits, driven in part by the redesigned Exmark Radius zero-turn mower and the GrandStand MULTI FORCE product line with its new, more powerful and fuel-efficient engine.
Ventrac Innovation Exceeded Expectations
Ventrac continued to grow with professional landscape contractors and homeowners with acreage. Demand for the newly introduced fence post mower already surpassed the company's initial production run.
Strong BOSS Snow and Ice Product Performance
BOSS had a successful third-quarter load-in, with liquid deicing technologies and the Snowrator delivering the strongest year-over-year growth rates within the portfolio.
Underground Construction Growth
Underground construction grew mid-single digits in the third quarter. HammerHead Bluelight has grown over 30% year-to-date, and its patented LED curing technology cures up to 5x faster than traditional steam, hot water or ambient air methods.
Residential Margin Expansion
Residential adjusted operating margin improved to 5.9%, up 400 basis points year over year, driven by productivity improvements, pricing, volume leverage and a favorable comparison to a prior-year inventory valuation adjustment. The company remains on track to achieve sustainable double-digit operating margins in residential.
Improved Companywide Operating Margin
Third-quarter adjusted operating margin was 13.9%, up 30 basis points from the prior year, primarily due to benefits from the AMP initiative.
AMP Savings Target Achieved and Exceeded
The AMP initiative is expected to exceed its target of $125 million in run-rate savings by year-end. The program has delivered benefits through supply base transformation, design-to-value engineering, route-to-market optimization and operational efficiency, while also helping mitigate tariff-related impacts.
Strong Free Cash Flow and Share Repurchases
Year-to-date free cash flow was $425 million, representing a 128% conversion rate. The company executed $358 million of share repurchases as a result of its strong cash flow.
Inventory and Working Capital Improvements
Inventory improved by $153 million year over year due to lower finished-goods balances. Working capital improved by $217 million year over year, contributing to strong free cash flow conversion.
Raised Full-Year Sales and EPS Guidance
Full-year net sales guidance was raised to a range of 6.3% to 6.6%, up from the prior range of 4% to 6.5%. Adjusted EPS guidance was raised to $4.60 to $4.65 from $4.50 to $4.62, with the midpoint increasing from $4.56 to $4.63.
Healthy Demand and Fourth-Quarter Momentum
Management cited sustained broad-based customer demand, healthy end markets, disciplined execution and ongoing productivity initiatives. Implied fourth-quarter guidance calls for net sales growth of 3.9% to 5.1% and adjusted EPS of $0.93 to $0.98.
Golf Technology Adoption
Toro has placed hundreds of autonomous products across golf facilities worldwide, including Turf Pro, Range Pro and GeoLink Autonomous Fairway Mower. The GeoLink Autonomous Fairway Mower was successfully launched, and the larger Reelmaster 5010-H is planned for next spring.
Strong Golf Irrigation Demand
Irrigation demand remains very strong, supported by courses upgrading or replacing systems that have reached the end of their useful lives. Projects and bids are taking place as far out as 2029, although installation activity remains limited by crew availability.
Successful New Golf Product Launches
The new electric greens roller is already sold out for 2026. Management said its intuitive controls, built-in pass alignment feature and all-electric design have contributed to customer adoption.
Strategic Portfolio and Technology Expansion
Over the past decade, Toro doubled revenues, completed 10 strategic acquisitions and expanded into new markets. The company is also advancing fleet management, autonomous technologies, gas and electric products, AI-enabled business processes and Spatial Adjust Precision Irrigation Technology.
Underground Construction Is a Capital Allocation Priority
Management identified the underground business as a high priority for capital allocation. The largest current plant investment is intended to unlock additional Ditch Witch capacity, and the company continues to see small, medium and large inorganic growth opportunities in the category.
Supplier and Partnership Initiatives
A Supplier Summit brought together more than 180 organizations to support supply continuity, innovation and productivity. Toro also hosted 36 golf course leaders from across North America to demonstrate engineering, manufacturing and emerging automation, artificial intelligence, electrification and connected solutions.
Positive Fiscal 2027 Positioning
Management expects to enter fiscal 2027 with strong momentum, continued demand across the portfolio, additional in-year benefits from AMP run-rate savings, residential profitability returning to double-digit levels and continued overall margin expansion.
MX:TTC Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed