Toro Company (The) (TTC) Business Profile

What it does

Toro designs and sells equipment for maintaining land, managing water, clearing snow and installing underground utilities. Its customers range from homeowners and landscape contractors to golf courses, municipalities, rental companies and agricultural operators. Founded in 1914, Toro is headquartered in Bloomington. Richard Olson was chairman and chief executive officer at the time of the Q3 fiscal 2026 earnings call.

The Professional business serves organizations that maintain turf and landscapes, as well as contractors working on construction and utility projects. Its products include commercial mowers, golf-course irrigation systems, snowplows, trenchers and horizontal directional drills. The drills help contractors install underground pipes and utilities without digging a continuous open trench. Toro also sells irrigation components for farms and greenhouses.

The Residential business sells walk-behind and riding mowers, snow throwers and other yard tools for homeowners. Products reach buyers through distributors, dealers, retailers and rental centers, as well as online and directly. Toro also provides services and sells parts and accessories for its equipment.

Its brands include Toro, Ditch Witch, eXmark, BOSS and Ventrac. Toro also owns Tornado Infrastructure Equipment, which makes hydrovac excavation and industrial equipment for underground construction, power transmission and energy markets.

How it makes money

Toro earns revenue primarily by selling equipment, irrigation products and related parts through its Professional and Residential businesses. It also sells separately priced extended warranties on select products and licenses its trademark for certain yard tools and garden equipment.

Fiscal 2025 net sales were $4,510.4 million; Q3 fiscal 2026 net sales were $1.23 billion.

Professional accounted for 80.3 percent of consolidated net sales in fiscal 2025. Its products serve golf courses and sports fields, landscape contractors, underground construction contractors, rental businesses, and snow and ice operators. Dealers and distributors resell much of the equipment, while some products go directly to government customers, rental companies and other users. The business also sells aftermarket tools for underground construction equipment, including drill pipe, bits and reamers.

Residential accounted for 19.0 percent of consolidated net sales in fiscal 2025. It sells mowers, snow throwers and yard tools, principally to homeowners through dealers, home centers, mass retailers and hardware retailers. The segment also sells online and directly to users.

Equipment sales are affected by seasonal ordering. Toro generally ships products before and during its channel partners’ selling seasons. Residential lawn and garden shipments occur primarily between February and June, while snow thrower shipments occur primarily between July and January, depending on weather, demand and availability.

Products generally include standard warranty coverage; authorized dealers and distributors perform covered repairs and receive reimbursement. After the warranty expires, those partners provide service at the customer’s expense. Pricing, product mix and manufacturing costs affect margins: Toro’s gross margin was 33.4 percent in fiscal 2025.

Customers and how it sells

Toro sells to both professional users and homeowners. Professional customers include golf courses, sports facilities, landscape contractors, government entities, utility contractors, rental companies and agricultural operators. Homeowners buy residential mowers, snow throwers and other yard equipment.

Toro markets and sells most products through more than 150 distributors worldwide, alongside equipment and irrigation dealers, mass retailers, hardware retailers, rental centers and home centers. It also sells online and directly to end users. Its products reach customers in more than 125 countries. Toro believes it is not dependent on any single customer over the long term, although losing a substantial customer could have a material adverse short-term effect.

Lowe’s is a residential partner. Toro said residential net sales increased 8.6% in Q3 fiscal 2026, supported by the partnership.

Sales outside the U.S. were 19.5 percent of consolidated net sales in fiscal 2025. Toro manufactures in the U.S., Mexico, the United Kingdom, Italy, Romania, Germany, Poland and China. It maintains sales offices across the U.S., Europe and Asia-Pacific, while pursuing new product development primarily in the U.S. for global distribution.

Suppliers and costs

Toro assembles most of its products and performs manufacturing activities including welding, stamping, machining, molding and painting. It also works with outside vendors on components and tooling, and contracts with third-party manufacturers for some finished products.

Its purchased inputs include steel, aluminum, resins, copper, rubber, engines, transmissions, hydraulics and electrification components. Toro buys them from suppliers around the world and generally seeks firm pricing for volumes consistent with its production plans. Most inputs are commercially available from multiple sources, though supplier financial hardship or failures to deliver can disrupt production.

Material and manufacturing costs affect profitability. Toro’s fiscal 2025 gross margin declined to 33.4 percent, partly because of higher material and manufacturing costs and lower sales volume. The company has incurred additional tariff costs and has sought to mitigate them through price increases, sourcing changes and manufacturing adjustments.

Toro’s AMP productivity program addresses the supply base, product design, distribution and operational efficiency. In Q3 fiscal 2026, Toro said it had reached $125 million in run-rate savings and expected to exceed that target by year-end.

Competitive position

Toro competes with different manufacturers across its product lines, end markets and geographic areas. It identifies product innovation, quality, price, service, warranties, brand reputation, channel relationships, product availability and financing among the factors customers consider. No competing company is named in the available competition evidence.

Toro says its Residential products generally face more competition than its Professional products because barriers to entry are relatively low. It also says Residential competition is greater internationally than in the U.S., particularly in Europe. Toro describes itself as the only company offering both equipment and irrigation products for the golf market and says it is a market leader in both.

Our reading: Toro’s distribution and service network is a meaningful competitive asset because dealers and distributors sell equipment and provide support during and after warranties. Our reading: Its brands and broad product range also support its position with customers, although competitors vary by market and can have larger financial resources. Our reading: Patents offer a more limited barrier on their own; Toro says it is not materially dependent on any individual patent and that patent protection may not prevent similar products.

Growth opportunities

Toro pursues growth through new products, technology and acquisitions that complement its existing brands and markets. Its development priorities include alternative power, connected products and autonomous equipment. Toro has placed autonomous products at golf facilities, and its equipment range includes autonomous mowers and fleet-management technology.

In Q3 fiscal 2026, Toro said a redesigned eXmark Radius mower and the GrandStand MULTI FORCE product line contributed to professional contractor sales. It also said demand for a newly introduced Ventrac fence post mower had exceeded the initial production run. Residential sales growth in the quarter was supported by the Lowe’s partnership.

The December 2025 acquisition of Tornado Infrastructure Equipment added hydrovac excavation products and expanded Toro’s dealer network. Toro says the equipment can be used alongside its existing underground products and can open opportunities in soft excavation. Its underground business also serves utility and broadband work, including connections for data centers.

Toro said demand for golf irrigation remained strong, with projects booked and bids extending as far as 2029. It also said installation-crew availability continued to constrain the rate of installations. For full-year fiscal 2026, Toro expects net sales growth of 6.3% to 6.6%, including mid-single-digit growth in Professional and approximately flat Residential sales.

Structural risks

• Economic and customer spending: Weaker economic conditions, constrained government budgets or reduced construction and property-maintenance spending can affect equipment demand. Customers’ access to cash or credit can also influence their ability to buy or rent products.
• Weather and seasonality: Wet or dry conditions, snowfall and other weather events can change demand, shipment timing and field inventory. Residential shipments are particularly seasonal, and unusual conditions can also disrupt the supply chain.
• Input costs and supply: Toro faces changing prices for materials and components, including effects from inflation, tariffs, currency and trade policy. Supplier financial hardship or failure to meet commitments can interrupt access to parts needed for manufacturing.
• Acquisitions: Tornado and other acquisitions involve integration risks, including delays, unexpected costs, difficulties developing distribution channels and potential impairment of acquired assets. Acquisition financing can also increase leverage and debt-service requirements.
• Competition and intellectual property: Residential products face competition from numerous manufacturers. Toro’s patents and trademarks may not prevent competitors from developing similar products, and the company may face disputes over its own or others’ intellectual property.

Bottom line

Our reading

Toro is primarily a professional equipment business, with a smaller residential operation and a sales model built around dealers and distributors. Our reading: Its product range and service network support its competitive position, while demand remains exposed to customer spending, seasonal weather and input costs. New products and the Tornado acquisition provide routes into additional demand, but installation capacity and acquisition integration can constrain results.